By now we’ve all heard how employees value benefits like health insurance, gym memberships, and commuter perks. However, 2019 has seen the advent of a new kind of benefit: financial wellness. Taking the employee benefits industry storm, “fintech” financial wellness technology is quickly becoming a non-negotiable for employee benefits packages.
Although it may seem high-tech and complicated, fintech is easier to incorporate into your benefits plan than you may think! Here’s our round-up of 4 of the top financial benefits of 2019, and how you can start offering them today.
1. Wages On Demand
Wages On Demand programs give employees access to pay for their already-worked hours before payday instantly and securely. The logic is as follows: if employees work every day, why can’t they get paid every day?
As an added bonus, Wages On Demand programs seek to put an end to employee debt, NSF charges, and predatory lending practices. After all, overdraft fees alone cost Americans more than $30 Billion each year. So you can feel good while you do good!
Employer Cost: Free.
Employee Cost: $5 flat fee to access $200 at a time.
2. Short-Term Loans… And More
It’s okay (and logical) to lean on financial solutions when you understand your options and can select the most effective solution for your situation. Sensible financing options do exist, but they’re not always intuitive.
FinFit Employee Loans & Financial Dashboard helps employees understand their options and ensure they don’t spiral out of control when unexpected financial challenges arise.
Employees can apply for affordable short-term loans when push comes to shove. Also, they receive access to a number of financial resources, assessments, and educational tools to help reach a state of financial stability so they won’t need to take out loans in the future.
Employer Cost: Free.
Employee Cost: Fees based on the amount of the loan.
How to Offer: Enroll online and download employee handouts.
3. Automated Pre-Tax Spending
Chances are, you’ve heard of FSAs, HSAs, 125 plans, commuter benefits, COBRA, and the like. A new fintech solution ALICE Financial takes all of these pre-tax spending plans and automates them.
ALICE automatically identifies eligible expenses, texts employees to confirm, and updates deductions in payroll. Employees get to keep more of the money they earn and employers lower their payroll taxes – all with no work for you!
Employer Cost: Half of what you save – there’s never an out-of-pocket cost to use. (Who doesn’t like free money?!)
Employee Cost: Free.
How to Offer: Email us at [email protected] to get set up.
4. Retirement Plans
Last but not least is a great retirement plan. While this isn’t necessarily “fintech”, this financial benefit is a must for any business. Especially now, with so many states (including California!) rolling out legislation requiring employers to begin offering retirement plans.
If possible, you’ll want to integrate your plan with payroll to minimize your workload. Additionally, ensure that your 401(k) partner is compliant with benchmarking and recordkeeping. Lastly, choose a plan and partner that will help you meet your business’ specific objectives.
Employer Cost: Fees vary by plan.
Employee Cost: Fees vary by plan.
How to Offer: Email us at [email protected] to get in touch with one of our retirement plan specialists. They will work with you to meet your plan objectives while maximizing your tax benefits and provide you with a quote and next steps.
What do you think?
How many of these benefits do you offer your employees? If you haven’t already, email us at [email protected] to activate your benefits today! And be sure to check us out on Facebook, Twitter, and LinkedIn for even more business tips & tricks!