When you think about benefits offered by your employer, what comes to mind? Health insurance and paid time off? Tax advantages and free memberships? Either way, what’s important is that you take a closer look into these “benefits” so you don’t miss out on saving yourself money and time!
Many health plans cover more than trips to your doctor’s office and prescriptions. You may also have access to gym memberships, an Employee Assistance Program and free consultations with a Certified Nutritionist, just to name a few! What about student loan forgiveness or tuition reimbursement? Maybe that certification you’ve been thinking about qualifies for reimbursement from your employer or, better yet, maybe your employer will make a direct payment on your behalf!
Have you ever heard the phrase “If it’s free it’s for me!” Don’t get me wrong, free benefits are great but what’s also great is benefits offered to you that come with a tax advantage! Some examples are: 401k plan, short-term or long-term disability coverage, health savings account and flexible spending account. Each of these accounts allow employees to pay for certain expenses while decreasing income tax and increasing take-home pay!
Here’s one example for you: an employee making $50,000 per year that contributes $2,000 to their Flex Spending Account would see their taxable income reduced to $48,000. If their marginal tax rate is 22%, this contribution could save them over $400 while simultaneously using this money from an account for purchases that they typically incur.
Taking advantage of benefits at your employer not only can offer growth and additional opportunities but the knowledge that you obtain is priceless (and powerful)!
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Illustration by BRO Vector on iStock
