The tax savings allow the employee the option of put this into savings or retirement needs. Lower gross incomes may also qualify employees for earned income credit on their income tax return. Again the greatest benefit is that employees can choose benefits that they need the most. Some may think that offering flexible benefit plan is very time consuming and an overall headache. Employers need to know the benefits they will receive from offering such plans.
Employees also can share the cost of the benefits, if desired.
Another benefit that is probably the greatest for the employer is that Flexible Plans retain employees and boosts morale by showing employer concern. One other benefit would be that you may be able reduce the costs of fringe benefits. So as you can see there are benefits to offering this type of plan. Things offered in Flexible Plans You may be wondering how can it be so personal. Cafeteria plans offer many options to choose from.