As we get ready to ring in a new year, your employees are busy setting goals and making plans for 2023. What will matter most to them in the New Year, and how can you be sure your benefits align with their needs?
On-demand pay
Employees would like greater control over their paychecks. With Edenred’s 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).
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.
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
The pandemic didn’t just change the way we work. It also changed the way we commute.
Commuter benefits will be a hot benefit as employees look for more cost-effective ways to get to and from work. These 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 to the cost of taking the subway, bus, train, rideshares, trolleys, light rails, water taxis, ferries, and traditional vanpools. Employees can even use it to cover the cost of parking.
The pandemic has also given rise to flexible work arrangements. Employees now have a greater appreciation of the benefits of flexible working.
According to Mercer, more than three-quarters of large employers look set to permit it (flex time) regularly next year, with nearly one in ten to allow it every day.
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 have a positive impact on both employees and employers. For employees, it is easy to participate in wellness programs and make more intelligent choices toward leading a healthier and happier lifestyle.
Heading into a new year may bring new challenges, but there is also opportunity. As the job market remains tight, look to employee benefits to retain, and attract top talent.
Schedule a meeting today to ensure you’re offering the most competitive benefits packages and that your employees take full advantage of them.
