Financial security will remain top-of-mind as we return to the office post-holidays. Fears of a recession have continued, and employees are looking for ways to maximize their savings and tighten up their finances in anticipation of an economic downturn.
At Edenred, we understand the type of support employees need regarding their financial well-being. Let’s examine which benefits can help your employees reach their financial goals this coming year.
On-demand pay
With AnytimePay, employees no longer have to wait until payday to receive their wages. Instead, they can instantly add funds from their next paycheck to a prepaid card with the click of a button. They will log into the Edenred Benefits app and choose a funding amount (up to their available limit). That’s it.
Payments are available in seconds and then processed within the same pay cycle, and the amount is deducted from the employee’s next paycheck.
Employees can use the prepaid card to help pay for groceries, food at restaurants, and even food deliveries.
Meal plans
Your employees are probably spending a good portion of their monthly budget on food. The average American spends $2,746 a year just on lunch.
Meal planning presents an opportunity to provide relief in a tangible way that affects employees daily.
Edenred’s Ticket Restaurant is a meal benefits program that gives employees a monthly meal allowance via a prepaid card. Not only does this relieve the financial burden associated with lunch, but it also makes employees feel valued and appreciated, often leading to higher productivity rates.
Commuter benefits
Commuter benefits allow employees to use pre-tax dollars towards commuting costs like public transit, rideshares, and qualified parking expenses. These funds employees spend can help reduce their federal taxable income.
On October 18th, 2022, the IRS announced that employees who use commuter benefits can now spend up to $300 per month tax-free starting on January 1st, 2023. That’s $20 more each month in tax-free dollars (up from $280 per month). Your employees can dedicate the funds to the cost of taking the subway, bus, train, rideshares, trolleys, light rails, water taxis, ferries, and traditional vanpools. It can even be used to cover the cost of parking.
Utilizing a commuter benefits account can save employees a lot of money in the long run.
Lifestyle Spending Accounts
Lifestyle Spending Accounts are wellness plans with various offerings that can be tailored to your employees’ needs.
Employees can use Lifestyle Spending Accounts for health, general fitness, or well-being. Lifestyle Spending Accounts are very flexible and can be used for various goods and services, including athletic and camping equipment, entertainment, pet care, food and dining, continued education, and more.
Lifestyle Spending Accounts help reduce healthcare costsand absenteeism while increasing employee productivity, morale, and loyalty.
Let Edenred help
Experts agree that we are looking at an economic downturn, even if slight, in 2023. Benefits will play a significant role in helping your current staff through more challenging times and giving you an edge to keep recruiting top talent.
Schedule a meeting today to ensure you’re offering the most competitive packages and that your employees take full advantage of them.
