Benefits Enrollment and Financial Well-Being
In 2018, the American Institute of CPAs, sponsored a Harris Poll to find out how well Americans understand workplace benefits. Based on the survey results, several CPAs offer a few suggestions to consider during annual benefits enrollment.
“A robust benefits package is often a large chunk of total compensation. It’s the employee’s job to make sure they’re taking advantage of it to improve their financial position and quality of life. Imagine how employees would react if they were not 100% confident that they could get all the money in their paycheck. Leaving benefits underutilized should be treated the same way,” says Gregory J. Anton, CPA.
Another CPA, Jaleigh White, suggests taking 30 minutes during annual enrollment to answer these questions:
- Are there any changes to my personal situation that might make another health insurance choice more valuable this year?
- What did I pay out of pocket this year that could be covered by an insurance option next year (e.g., dental or vision insurance)? Could I pay with pre-tax dollars through the FSA or HSA? What new expenses am I anticipating for next year that might change my current elections?
- What changes can I make to my budget to allow me to increase my tax deferral savings through the FSA or HSA?