Today, a broad array of employee benefits is made available by many employers to their valued employees. In recognition of the significant role that an employee’s well being plays in the corporate world has paved way for more types of benefits that employees and employers can choose from. Apart from the core benefits such as health insurance, retirement plans, disability insurance, paid vacation and others, there are also flexible employee benefits that many are taking considerable thought these days. Due to their relative appeal to both employees and fit employers, they are increasingly becoming a popular trend among the types of employee benefits.

Employees opting in a flexible benefits package have the freedom to choose the types of benefits to include in the package. Also known as flex plans, flexible benefits plan offer tax-efficient solutions to employees and employers as it allows for allocation of pre-tax dollars to pay for eligible expenses that are not covered by medical insurance premiums.

Flexible employee benefits that are tax-efficient typically include:
· Childcare Vouchers
· Mobile Phones
· Bikes for Work
· Health Screening

How can flexible employee benefits plan be tax-efficient? Flex benefits scheme typically offer benefits through salary sacrifice arrangements. Through this scheme, employees give up their right to receive a part their salary in exchange for benefits that they can avail through a flex benefit plan. This way, their gross salary will get deducted depending on the amount contracted by the employees. Only after deductions from benefits will employee salary be taxed, resulting in a tax discount and thus, savings.

To make things clear, flex plans are plans that also offer employer-paid benefits that employees can choose to opt in or out of. Apart from this option, employees are also given a choice to select employee-paid benefits, which are tax-efficient as they are often through a salary sacrifice scheme. Lastly, if employees do not want to avail of any benefits that are offered in the flex plan, they have the option to take cash instead. While the employee-paid benefits are typically tax-efficient benefits, the other options in the flex benefits plan remain to be taxable.

In recent years, flexible employee benefits plans have been increasingly popular due to the tractability they allow employees in selecting the benefits they want to receive. Since there is no point in availing of numerous benefits that will end up not getting used, flex plans offer the best option for both employers and employees. Apart from the possibility of better staff retention due to this particular strategy, gaining tax savings should fit the bill.

Check out small group benefits Calgary for more information.