Benefits that Motivate Your Team
Most employers fall into the trap of giving their employees a raise year after year. The problem is that if your compensation to your employees are more than 20 – 22% of your collections this can be a Big problem for your practice. You should be thinking of ways to offer your employees tax free benefits that will create a win – win for your practice. An example for that would be to offer employee’s commuter Benefits.
What’s the benefit?
Funds are pre-tax which means that employees save an average of 30% on Commuting Costs.
Employers save as much as 7.65% on the amount of the pretax deduction made by employees
This works really well in NYC if your employees rely on MTA to travel to work. This benefit is not taxable for SS or Medicare purposes. The employee is also getting a benefit of something that they usually pay each month.
How does it work?
Employees can use tax-free funds to pay for parking and public transportation-such as train, subway, bus, ferry, trolley or van pool-as part of their daily commute to work. You deduct the cost from the employees paycheck for the amount that they would like to use towards commuter benefits.
What’s the administration?
There are companies that will handle the compliance part from start to finish. A simple Google search for Commuter Benefits should be able to get you on your way.