We see a major objective of fringe benefit planning is to direct compensation to employees at the lowest after tax cost to the company while providing a benefit that is either tax-free or tax favored to the workers.

 

FRINGE BENEFIT PLANNING

At Integrated Capital Management, we see a major objective of fringe benefit planning is to direct compensation to employees at the lowest after tax cost to the company while providing a benefit that is either tax-free or tax favored to the workers.

 

While you want to attract the best employees to your company, you must carefully scrutinize benefit programs from the standpoint of cost versus needs versus compliance. The options can be numerous and complex. We offer consulting services on a wide range of areas such as compensation planning, retirement and welfare benefits, medical, dental, cafeteria, 401(k) plans, profit sharing plans, money purchase pension plans, and employee stock ownership.

 

Fringe Benefit Plans have become more and more important in most people’s estate planning. The primary reason for their increasing significance is that they provide additional tax savings opportunities for employees. So, as taxes increase, the value of fringe benefit plans also goes up. They also have increased in popularity because essentially the government subsidizes them. The costs of the plans are deductible by an employer; but the benefits are often not taxed (or taxed later and at a lower rate) to the recipient (employee). Thus, the real benefit is to reduce your taxes and your employee fringe benefit plans offer you some of the best ways to do it.