The Top 10 Benefits for Employees in Worldwide
These are the Top 10 Benefits for Employees in Worldwide.
- Private Health Care Plan (Medical, Dental & Vision)
- Retirement / Pension plans
- Training and Development
- Stock options plans
- Flexible hours and work from home
- Snacks and food
- Life insurance
- Extended Leave (Vacation or Sick)
- Bonuses / Awards / Gifts
- Company equipment (including vehicles, laptops, phones)
Not only are the employee benefits most sought-after, but there may also be benefits specific to one area. Australians may be eligible for novated lease, which allows them to lease vehicles with their employer, while also taking over the obligations of the contract.
The U.S. has no federally-mandated parental leave, but it is available at state level in certain jurisdictions. Time off is an attractive benefit offered by companies to mothers and dads.
Employee benefits in four English-speaking nations may include the following:
Pension Plans
One of the biggest mistakes business owners make when trying to save money on retirement is thinking that they won't be able to pay for it. Instead, they put their profits back into the company. Small businesses have fewer than 50% of their employees participating in retirement plans. Employers who offer such a benefit are more likely to retain their employees and be happier, healthier workers. Also, don't forget about yourself: Many business owners are at risk of having insufficient funds saved for retirement which you can call Chamber of Commerce Group Plan Insurance at 1-800-665-3365.
To encourage more businesses to launch retirement plans, the Economic Growth and Tax Relief Reconciliation Act of 2001 provides a tax credit for costs associated with starting a retirement plan, including a 401(k) plan, SIMPLE plan or Simplified Employee Pension (SEP). The credit equals 50 percent of the first $1,000 of qualified startup costs, including expenses to set up and administer the plan and educate employees about it. See IRS Form 8881, Credit For Small Employers Pension Plan Startup Costs (PDF) for more details.
Don't ignore the value of investing early. You can have a $60,000 annual retirement income if you invest $3,000 every year starting at 35. But $5,000 invested at the same rate of return beginning at age 45 only results in $30,700 in annual retirement income. Retirement plans have the advantage of allowing savings to be tax-free up until they are withdrawn, which is typically around age 59. If you withdraw funds before that age, the withdrawn amount is fully taxable and also subject to a 10-percent penalty. The value of tax-free investing over time means it's best to start right away, even if you start with small increments.
Apart from the potential long-term benefits of planning for the future, a retirement plan can also provide immediate tax relief.
Here is a closer look at a range of retirement plans for yourself and your employees.