Surveys show that employees tend to underestimate the amount of money that their employer is spending on employee benefits. It’s up to you to get them to realize their paycheck is only part of the compensation they are receiving as employees.
Make your employees aware of their total compensation package. After all, your employees can’t appreciate all those extra dollars the company pays if they don’t know about them.
In conjunction with preparing an employee’s W-2 for 2013, prepare a list of the amounts that make up his or her total compensation package. Consider going over each employee’s total benefits package during the employee’s annual review.
Your benefits summary should include such items as the following: salary, bonus, pension plan contribution, deferred compensation, medical and dental insurance, life insurance, disability insurance, FICA (social security & Medicare), worker’s compensation, and unemployment insurance.
Also include the number of paid vacation days, personal days, sick days, and the value of employer-provided benefits such as work clothing, parking, and meals.David Bradsher, CPA