Your employer may be able to put more money back in your pocket than you think. With budgets tight, workplace benefits are an often-overlooked way to save on everything from retirement to lunch.
Many companies offer perks designed to help employees afford essentials like healthcare and childcare. If you haven’t reviewed your benefits package in a while, you could be missing out on significant savings. Here are nine common benefits worth checking for.
Retirement Contribution Matching
A 401(k) match is one of the most valuable benefits an employer can offer. You decide how much of your paycheck to contribute — usually a percentage of your salary, such as 5%. Your employer then adds money based on that contribution.
Some companies offer a dollar-for-dollar match, meaning if you contribute 5%, they add 5%. Others offer a partial match, such as 50% on the first 6% of your salary. Taking advantage of this can help you reach retirement goals faster and ease the pressure of saving alone.
Some employers also offer student loan payment matching. These programs let borrowers build retirement savings while continuing to pay down student debt.
Tax-Advantaged Accounts for Medical Expenses
Depending on your health plan, you may qualify for a health savings account (HSA) or a flexible spending account (FSA). These accounts let you save and pay for medical costs with tax advantages.
Contributions to HSAs and FSAs are tax-deductible. Withdrawals are tax-free as long as you use the money for qualifying medical expenses. The two accounts work differently and have different eligibility rules, so talk to your employer about which option fits your situation.
Tuition Reimbursement
Going back to school can be cheaper with a tuition reimbursement program. These programs cover an employee’s educational costs, either in a lump sum after completing a course or spread out over time.
Some employers require a minimum grade, such as a “B” or better, to get reimbursed. Many companies reimburse up to $5,250 per year, which is the maximum that’s tax-free under IRS rules. Anything above that amount may count as taxable income.
Wellness Programs
Some companies reward employees for being proactive about health. Gym memberships and free mental health counseling services are common offerings. Taking advantage of these benefits can save you money on services that help you live healthier.
Company Discounts
Your job could get you deals on retail, travel and entertainment. Employers either negotiate special deals directly with vendors or partner with third-party providers such as Perks at Work or Working Advantage.
Before you book a rental car or buy amusement park tickets, check whether exclusive discounts are available through your employer.
Childcare Support
Childcare is a major expense for many families. The average parent spends 20% or more of annual income on child care, and 31% are dipping into savings to cover the cost, according to Care.com.
Some companies offer childcare stipends, referral services or on-site childcare programs. These can help cut costs and keep more money in your bank account.
Commuter Benefits
Workers who commute every day may have benefits that reduce transportation costs. Train tickets, subway passes, bus passes and parking can all be covered through workplace programs.
Work-From-Home Stipends
Remote and hybrid workers don’t have to miss out on savings. Some companies offer stipends to cover home office setups, energy bills or phone bills. Check your benefits to see if this is available to you.
In-Office Snacks and Meals
Buying lunch five days a week adds up. Free snacks, meals and refreshments at work can trim your grocery bill and save money on the days you’re in the office.
How to Find Money-Saving Perks
Not sure if your company offers any of these benefits? There are a few ways to find out.
Review your employee handbook or new hire packet. When you started your job, you may have received documents detailing all your benefits and perks. Check your emails and downloads for these materials.
Log into your benefits portal. Many companies offer online portals where you can review benefits, make changes and learn how to access perks.
Ask human resources. When in doubt, reach out to your HR representative. They can answer questions about what your company offers and how to use those benefits.
| Benefit | How It Saves Money |
|---|---|
| 401(k) match | Employer adds money to your retirement account based on your contribution |
| HSA or FSA | Tax-deductible contributions and tax-free withdrawals for medical costs |
| Tuition reimbursement | Covers educational expenses, often up to $5,250 per year tax-free |
| Company discounts | Reduced prices on retail, travel and entertainment |
| Commuter benefits | Covers train tickets, subway passes, bus passes and parking |
A quick review of your benefits could reveal savings you’ve been leaving on the table. It costs nothing to ask, and the payoff can be substantial.
Source: finance.yahoo.com
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