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It's amazing how many people do not take advantage of all their employee benefits. In this highly competitive work world, employers are forced to offer better benefits to attract and maintain valuable employees. But even if your employer offers premium benefits, if you never utilize them what good does it do you and your family. It is sad to say, but if you are not taking advantage of all your company's benefits, you are quite literally throwing money away. Here's a quick list of some of the more common employee benefits that will save you money:
Retirement Plans - This is one of the best ways to save for retirement. When you enroll in your company's retirement program (such as a 401(k)), in most cases the money deducted from your paycheck will be pre-tax dollars. Not only will the deducted dollars reduce your current income, but also the money in your retirement account will grow tax-deferred. This is a great way to maximize your savings. Additionally, some retirement programs offer a matching feature, where the company matches a percentage of your contributed dollars up to a certain point. Although, most programs require you to meet some vesting criteria before the money is officially yours, it is still FREE Money!
Medical and Childcare Flexible Spending Accounts - Some companies offer Flexible Spending Account (FSA) programs, which allows you to pay for certain non-reimbursable medical costs and daycare costs with pre-tax dollars. (see related article - "Cut Taxes Through Flexible Spending Accounts") Like your retirement contributions, the money allocated to the FSAs is deducted out of your salary, therefore reducing your current year's income. Lower taxes equal more money for you!
Educational Programs - If you're looking to fine tune your skills or broaden your knowledge; before signing up for the local extension class, find out whether your employer is willing to pay for your classes or seminars. You may even get your MBA or graduate degree paid for by your company. Although, many times educational programs are not formally offered by your employer, your boss may be willing to approve certain courses or seminars to keep the department updated and entice you to stay on board. Companies that offer to pay for MBA/graduate degrees often require the employee to stay for a minimum number of years. But considering the high cost of graduate programs it may be well worth it.
If you have any certifications, such as a CPA, that require continuing education ask your employer to foot the bill or contribute a portion of your costs. Also ask them to pay for your renewal fees or membership dues to any related industry associations.
Life and Disability Insurance - Most companies offer free life insurance and disability insurance based on your salary. If you are looking to increase or supplement your coverage, compare your company's rate to an outside insurance agent's rate. Your company may offer a lower rate for the same coverage.
The key to saving money through your employee benefits is to take the time to find out what is available and don't be afraid to ask for more. If you are a valuable employee…and all FiscallyFitters are…then your company may be willing to bend the rules to keep you happy.
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