We often think of group benefits as provisions established for the good of employees. But in many ways, employers can benefit from them too!

Health savings accounts serve as a good example of this mutually beneficial relationship. We tend to think of an HSA as an account that helps employees divert a portion of their paychecks, on a pre-tax basis, to be used for out-of-pocket healthcare expenses. An HSA becomes important when employees are enrolled in a low-premium, high-deductible healthcare plan. The benefits to the employee are obvious. But you might be surprised to learn that a health savings account brings numerous hidden benefits to the employer as well.

Employee incomes feel a bit higher. It’s not exactly the same as a raise, but works in a similar way. When employees direct some of their paychecks to a health savings account each pay period, they effectively lower their overall taxable income a bit. The end result is that their income goes to cover necessary expenses, but they keep more of it.

HSAs serve as a long-term financial planning tool. Employees appreciate financial planning tools, and an HSA can actually serve as one. Because funds in the accounts roll over year after year, can be used in retirement, and even go with the employee if they seek employment elsewhere, an HSA can aid in long-term financial planning and even retirement planning.

You can make matching contributions. Employers aren’t required to contribute to health savings accounts, but you can opt to do so. Matching employee funds in an HSA is yet another way you can offer a valuable monetary benefit to employees while helping them stay healthy.

Comprehensive benefits create happy, loyal employees. When your employees feel valued, they in turn value their employment. By offering benefits such as a health savings account, you can create a strong work culture of health and company loyalty. Turnover is lower, and productivity increases.

Call us for more information on health savings accounts, and we can help you decide whether HSAs fit into your overall benefits package.