These low-cost benefits to the employer can be a real attraction to employees. Optional employee benefits are programs sponsored by the employer. Typically, they are at little or no cost to the employer. Just as important is that the employee is not taxed on the benefit. The best example is low-cost group insurance coverage.
Most employees purchase many insurance policies.
As an optional benefit to employees, these and other types of insurance coverage can be made available at discounted group rates. College Education Family Savings Plan College Education Family Savings Plans, also known as Sec. 529 plans, are tax deferred programs to permit savings for education. A parent or grandparent makes payments to the plan. The tax on the earnings is deferred until distributed to the child at the child's own tax rate.