BENEFIT BANK
What is a Benefit Bank?
At our company, we strive to ensure that all employees can fully leverage their compensation. To achieve this, we have established a "benefit bank" program, allowing employees to utilize their benefits in tax-advantaged ways, such as health, dental, vision, education, and retirement, or as buffers, such as time off, sick leave, holiday pay, and emergency funds. They can also opt to receive additional pay if they don't utilize the other benefits.
The issue with many traditional employer benefit programs is that they come with high costs, and employers expect employees to NOT fully utilize these benefits to offset the costs incurred by those who do. In contrast, our benefit plan allows employees to redirect funds designated for health insurance towards other benefits, such as additional time off or continuing education, or to receive additional pay. This provides employees with greater flexibility and control over their benefits and compensation.
Benefit Bank Example
Currently, you contribute 5% of every $1.00 earned to your benefit bank.
This comes out to about $0.70 contributed for each hour worked. With an additional $0.10 per hour added to cover company taxes when withdrawn.
Your current Benefit Bank Balance is $136.19. Of that, $20.43 are set aside for company taxes and $27.24 we estimate will be withheld for employee taxes (depends on deductions and wage), leaving an expected $88.52 of actual money you would see on your check.
There are several ways to take this benefit, with some of them saving or earning you more money!!
As a Bonus, this would translate to $89 on your paycheck.
As time off, this would translate to 9.7279 hours of paid time off.
As a Retirement contribution, Health, Dental, Vision, etc. reimbursement or other tax free benefit, this would translate to $136 on your paycheck.