Employee Benefits

Whether you have your own business or you work for someone else, it makes all the sense in the world to take advantage of employee benefits. The government allows most businesses to set up plans to pay for certain costs (the most popular plans are related to health insurance and child-care costs). Usually a portion or all of these costs are passed on to the employee through reductions in their pay. The reduced cost lies in the income tax savings. The amount that your employer is reducing your pay is not subject to income tax. For example, someone in the 25% tax bracket would pay $7,500 for a particular benefit that normally costs $10,000. The overall income tax savings depends on your tax bracket. And this does not include any potential state income tax savings.

When changing jobs, we often put a great deal of focus on the salary. However there is so much more that you may be receiving than just a paycheck. Some of the employee benefits you are offered have a monetary value, even though it's not calculated for you. Also, if you're considering leaving a job, don't forget to account for the benefits you may be giving up—they may be more valuable than you realize.

Some major employee benefits you should maximize and evaluate:

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