4 Employer Financial Contributions That Boost Your Benefits
Saturday, February 8, 2020, 6:00 AM | Leave Comment
There are many reasons why we work. Of course, the salary that we receive ranks up there near the top.
There is also the rewarding nature of what we do that helps us to get up each morning and punch the time clock.
Beyond that, there are benefits that many employers provide their employees besides your salary that can contribute to the compensation you get from an employer. These benefits can really add up in the long run.
Here are four ways that your employer may contribute to your salary that end up really boosting your benefits.
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Retirement Savings
It may not seem like it today, but there will eventually come a time when you can retire. When that day arrives, you want to have enough money to live comfortably. One way to do that is to contribute to a retirement savings plan over the course of your working career. There are many tax advantages to doing so. In addition, many employers will match your contribution to a 401K program up to a certain percentage of your salary.
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A Flexible Spending Account
Many employers will help you to fund a flexible spending account. This amount of money is not taxable, meaning that your income tax is often lowered as a result. In addition, the money can then be spent on certain healthcare related costs that you must pay for out of your own pocket. This is a different benefit than the healthcare savings account, so you will want to keep that in mind.
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Health Savings Account
This is a useful benefit designed to help people who are enrolled in a high deductible health insurance program. The idea is to have a savings account set aside where you will have money to pay for medical costs that would normally require you to have to meet your deductible first. Getting braces is an example of an expense that can be pricey out of pocket. Paying with your HSA card means that you will pay with money from your paycheck before taxes. If your employer matches your HSA contributions then you will have saved even more money than if you pay out of your checking account.
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Child Care Coverage
If you have children, your employer may help subsidize the cost of childcare. This is obviously a valuable benefit, as such costs keep increasing every year. Some employers will also offer childcare on-site, so that is an added benefit that you can add to the overall salary package you receive from your employer.
These are four of the many ways that your employer may contribute to your overall benefits package. The key is to determine which of the benefits can apply to you and then work to maximize the money that you can end up receiving. That is how you can get the most out of your overall employment package and better provide for your family.
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