If you are an Employer, Senior Manager, HR Manager or Financial Controller, Im sure that you are well aware of the term Employee Benefit packages as they have become very topical as of late. It is important that the following questions are asked in relation to your business and your Employee Benefit packages;
- Do you know your obligations as an Employer under current legislation?
- What Employee Benefit packages (if any) do you offer your staff?
- If you do offer a package, have you ever conducted a cost benefit analysis on same?
Your obligations as an Employer;
As an employer the Pensions Act requires you to offer the facility to your employees to take out at least one standard PRSA (Personal Retirement Savings Account) if:
- You do not currently have a pension scheme in place; or
- You have employees that are not included in the pension scheme; or
- You have a waiting period for membership of the pension scheme of more than 6 months; or
- You do not allow employees take out an AVC plan (within the scheme rules).
To establish a Group PRSA pension plan, you are obliged to:
- Nominate a company to provide access to at least one standard PRSA for your staff.
- Communicate this choice of PRSA provider to your staff and inform them about the PRSA facility you have decided on.
- Allow your employees adequate time to meet with a Financial Advisor and get advice.
- Provide a payroll deduction facility if your employees wish to contribute to the PRSA.
- Notify the provider and employee in writing, at least once a month, of the payments deducted from employees’ salaries and any payments made by you.
- You do not have to contribute to a PRSA.
- You do not have any responsibility regarding the investment choice and performance of the PRSA fund(s).
Businesses who currently have an Employee Benefit Package in place
If you currently have a benefit package in place;
- What pension arrangements do you have at present?
- Are you aware of the potential tax savings you are or could be achieving?
- Do you offer death in service benefits to your staff?
- Do you offer Group Health Insurance?
- Do you offer sick pay entitlements or have you a group income protection scheme in place? If not, have you ever analysed the financial cost to your company if/when an employee goes off sick and you are obliged to pay them for a period of time?
- Do you offer the bike to work schemes?
- Are you having performance issues?
- Are your staff motivated,
- Are you maximising the potential of your staff’s talent?
- Do you offer mindfulness/wellness programmes for your staff?
- Do you have problems with staff retention/recruitment?
- Have you ever considered the financial cost of operating a company with a high staff turnover?
- Would you like to find out ways to improve Employee loyalty, motivation and productivity?
Services we can provide in an Employee Benefit Package
- Group Income Protection
- Group Pensions and (AVCs if already part of an occupational scheme)
- Death in Service
- Standard PRSA contracts
- Group Health Insurance
- Provide a cost benefit analysis on your existing employee benefit packages
- On-site One to One Financial Health Screening for staff (see below),
- Advice on pensions from previous employments,
- Periodic Educational talks on Money Matters(see below)
- Quarterly Employee Wellness workshops (see below)
On Site Employee Wellness Workshops for Staff
This is another option which we offer to staff members as an add-on to certain Employee Benefit Packages. Here we offer workshops to staff on the following;
- Life/Business Coaching
- Psychologist on Mental health Issues
Each qualified professional performs a seminar to all staff and offer one to one workshops/screens in their respective areas of expertise throughout the day. These events can be tailored toward the target audience.
Periodic On-site Educational talks to Staff
This is an optional service that we provide to staff as part of our Employee benefit package. Here we perform periodic educational talks to groups of employees on certain topics. For example;
- How to get your first Mortgage
- Explanation of your the basic income tax brackets, Tax credits for single, married, co-habiting individuals with dependent relatives, or ones with disabilities and the supports available for them and how to claim them
- How to do a tax return
- How to understand your payslip
- Life Cover, Serious illness and Mortgage protection explained
- How to save for a Deposit for a house
- Tax relief, Pensions and AVCs
- How to prepare for your Kids educations costs
- Health Insurance explained
- Other relevant topics
One to One Financial Health Screening for Employees
- In our One-to-One Financial Health Screening for staff members, we perform a comprehensive analysis on their current financial situation. We will analyse all of their income and expenditure requirements along with looking at their cashflow situation over a 12-month period. We then show them how to manage their spending on a day to day basis in order to save more money and live a decent lifestyle.
We show them how to automate their bank accounts in such a way that they will be able to:
- Comfortably pay their bills at the end of the month
- Save on a consistent and regular basis
- Develop good spending habits and eliminate bad ones and impulse buys
- Manage their cash flow so that they don’t run into financial difficulty in periods of high spending (eg Christmas time, kids going back to school, going on holidays etc)
- We can help them get out of the rut of living pay cheque to pay cheque if this is a problem they want to address.
- We also perform an audit of their payslip in relation to tax credits, rate bands, BIK, and other deductions and explain how income tax, PRSI and USC are deducted from their Gross pay.
- We will show them how to do their own tax return and claim back their tax and any relevant, qualifying expenses.
If they are looking to apply for a mortgage we can show them how to prepare their application so that they get mortgage approval.
Benefits of providing a comprehensive Employee Benefit package to both the Employer and Employee;
- Employers can tailor the benefit packages to suit the Employee role. Benefit packages can be tailored and altered for different staff levels, eg. An Executive package can be offered to all senior management and a standard package offered to other staff.
- Employees feel valued when offered benefits, which in turn improves staff morale.
- Staff retention and the overall goodwill towards the company improves.
- Greater Loyalty and trust towards the company from staff.
- Benefit packages provides peace of mind for employees, knowing their family will be looked. after in the event of their untimely death.
- Employee Performance as a result improves dramatically in the workplace.
- A Comprehensive package can actually attract potential new staff to join your team.
- Statistics show that Companies which provide Comprehensive Employee benefit packages to their staff experience less sick days and lower staff turnover.
Other Services offered to Business Owners, Director, and Senior Management
Other services that we offer Business Owners, Directors and Senior Management are as follows;
- Establish, alongside your Accountant/Financial Controller how to operate your business in the most tax efficient way possible. For example;
- For start ups, we go through what is the most suitable way to set up (sole trader, partnership or a company).
- Assist in establishing the most tax efficient method of paying both employers and employees in relation to income tax, BIK, Employer and employee PRSI costs etc.
- Look at the best ways to distribute and extract profits from the company (using dividends, a tax free savings plan or hiring spouse/children in the business etc.)
- How to build wealth for both the owners personally and for the business. It is so important to separate these incomes. By doing this it will protect Business owners against unforeseen events/activity happening to the company which could leave them personally liable for losses incurred by the company. This was a mistake that so many business owners made before the recession hit during the Celtic Tiger days.
- Access to Funding;
We can show you how to get funding for the following;
- Cash flow
- Working capital (increasing your work force or buying stock)
- Fleet Management
- Mergers and Acquisitions
- Purchase of Residential or Commercial property.
- Provide a cost benefit analysis on your business insurance (premises, public liability etc.)
- If business owners are looking to cash in, retire out or sell the business, we can provide them with a tax efficient exit strategy and obtain a premium price for their business.
If you would like to find out more about tailoring a package specific for your business please contact us and we can set up a meeting to discuss.