Employee benefits are implemented by companies trying to ensure they hold on to their most talented and valued workers.
They work by motivating the employee and giving them reasons to stay in the post outside their own career satisfaction.
That is why businesses serious about retaining workers should take advantage of staff rewards, which have a resulting positive impact on the firm.
It seems there can also be tax advantages for companies offering health benefits to employees, as is the suggestion of a new fact sheet issued by a leading healthcare provider.
Simplyhealth has published a tax guidance fact sheet for large firms to make them aware of the kind of tax savings they could make by offering health benefits.
Entitled ‘taxation implications for company paid healthcare’, it follows on from an initial fact sheet introduced for small and medium-sized enterprises.
It outlines the tax implications of implementing health benefits for both the employer and employee, taking into account insurance premium tax, national insurance contributions, income tax, corporation tax and value-added tax.
Head of business marketing for Simplyhealth Howard Hughes said: “This guide aims to explain the key costs involved and provides organisations with examples of what the tax implications mean to them.
“We hope that the fact sheets provide organisations with a simple and useful guide to navigating the UK tax requirements.”
Employers are encouraged to download the fact sheet from the group’s website, although they have been warned that it is a guide only and companies should speak to tax advisers or HM Revenue & Customs for further recommendations.
Health benefit plans help employers to engage their workers by reassuring them that they will be taken care of in the event of health concerns and can range between general health to dental care.
Similarly, firms might introduce childcare vouchers after recent research from Daycare Trust and Mumsnet showed 40 per cent of employees considered quitting their jobs over childcare costs.