GTM Payroll Services' Founder & CEO, Guy Maddalone, discusses "The Value of Offering Employee Benefits & Perks" with
GTM Business Development Director, Theresa Anzelc.
GTM Payroll Services Inc.
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(Guy) I'm Guy Maddalone, CEO & Founder of GTM Payroll Services.
(Guy) Welcome to our online Educational Video Series.
Today's topic is "The Value of Offering Employee Benefits & Perks."
(Guy) With me is GTM's Business Development Director, Theresa Anzelc.
(Guy) Offering benefits and perks in addition to employee's base pay will help attract and retain high-level household employees.
(Guy) The benefit to the employer is that it gives you an added piece-of-mind because you know that your employee is satisfied.
(Guy) Now Theresa's going to talk about the most popular employee benefits.
(Theresa) Popular employee benefits include medical or dental insurance, paid time for vacation, holiday, sick or personal leave, bonuses, annual pay increases, flexible hours, housing allowance or live-in arrangement, vehicle use or vehicle allowance, education reimbursement, cell phone or allowance, and a computer, PDA, iPad or iPod.
(Theresa) Benefits to the employer also include tax savings.
(Theresa) Employers who provide health or dental insurance through an approved pre-tax plan can save the tax on premium dollars paid through employee deductions.
(Theresa) For every dollar of premium deducted from the gross pay, the employer and employee will see tax advantages.
(Theresa) Employers will save 7.65% on social security and medicare.
(Theresa) Employees will save 5.65 on social security and medicare in addition to applicable federal, state, and local withholding taxes.
(Theresa) Other benefits may be considered taxable income.
(Theresa) Benefits to the employer also include retention savings.
(Theresa) Providing good benefits and perks will outweigh the cost of replacing employees.
(Theresa) Replacement cost may include placement search fees.
(Theresa) Temporary help by locating your replacement employee, training, new employee training expenses. (Theresa) Also, the employer's unemployment insurance rate may increase.
(Guy) Great, thanks, Theresa.
(Guy) Some nanny tax resources out there for employers.