by BenefitsRMyLife » Wed Jun 11, 2008 02:25 pm
I am trying to find a way to incent my employees to participate in a wellness program.
We pay 100% of the employee only premium for medical so a premium differential is not a viable solution. We have done cash equivalent options in the past (Gift Certificates and Gift Cards). However, this has become a major issue for my payroll dpt. due to the tax implications.
My idea was to incent by contributing directly to the flexible spending account. This would be pre tax for the employee and would not require us to match, etc. Has anyone done this or have experience with such a plan.
I know it is a little bit out of the norm but I think it is a good solution until the IRS gets their heads out of their rears. Please let me know your thoughts! Other incentive ideas would be welcome.
- BenefitsRMyLife
We pay 100% of the employee only premium for medical so a premium differential is not a viable solution. We have done cash equivalent options in the past (Gift Certificates and Gift Cards). However, this has become a major issue for my payroll dpt. due to the tax implications.
My idea was to incent by contributing directly to the flexible spending account. This would be pre tax for the employee and would not require us to match, etc. Has anyone done this or have experience with such a plan.
I know it is a little bit out of the norm but I think it is a good solution until the IRS gets their heads out of their rears. Please let me know your thoughts! Other incentive ideas would be welcome.
- BenefitsRMyLife
Posted: Thu Jun 12, 2008 04:47 am Post Subject:
I am trying to find a way to incent my employees to participate in a wellness program.
The ways that you wanna get them would depend a lot on the benefits or the nature that this program is gonna offer.
Posted: Thu Jun 12, 2008 06:17 am Post Subject:
Hi yeah, the FSA is aimed at saving money through lowering the income taxes. Prior to the deduction of fed. state taxes or SS taxes, the employer's offering to the FSA would be deducted. The IRS would not come to know about this. It would be an effective measure to cut down your taxable income & lift your expendable income. In return you'd be able to save loads of money each year.
Tx, PalinRome
Posted: Thu Jun 12, 2008 06:25 am Post Subject: FSA
Hi,
Lemme assure you that the FSA is aimed at saving money through lowering the income taxes. Prior to the deduction of fed. state taxes or SS taxes, the employer's offering to the FSA would be deducted.
The IRS would not come to know about this. It would be an effective measure to cut down your taxable income & lift your expendable income. In return you'd be able to save loads of money each year.
At the beginning of the term, you'd need to inquire about how much money your employees would be able to contribute for this. You need to draw this amount through equal instalments for each term & place it in a specialized account.
Keep it up! Blackberryfin
Posted: Thu Jun 12, 2008 06:36 am Post Subject:
Do you mean you wanna make them use this money for any health & wellness prog?
If so, how are you gonna make it?
Posted: Thu Jun 12, 2008 03:36 pm Post Subject: More information
Thanks Blackberry! I thought I may need to provide a little more information. We currently have an FSA (Dependant Day Care and Unreimbursed Medical) option. The contribution limit is $10,000. I know that is high but many of our employees use all of the Dependant Daycare and a high percentage of the allowabe Unreimbursed Medical.
My idea was to transfer whatever dollar amount that would have been spent on a cash equivalent (gift card) into the flexible spending account and "earmark" this for use by the participating employees.
I see one issue: What about those individuals who do not currently hold an FSA account? My thought was it is a voluntary program so it is a voluntary incentive.
Any thoughts, comments are greatly appreciated. Thanks to everyone who posted!
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