Right smack dab in the middle of summer might seem like the worst time to think about your taxes, but it’s actually the perfect time. Here’s what taking a pause in July allows you to do.
Get Organized
Do you have all your receipts? Are your records up to date? Did you move, get married, or change your name? If so, you’ll need to notify the IRS. In fact, you can create an individual IRS online account to look at your tax records, manage communication preferences, make payments, and more.
Take a Financial Snapshot
When was the last time you looked at your checking, savings or investments to see if you’re where you want to be? If you take the time now, you can start with January and analyze the big picture. You can see if you’re happy with the growth of your investments and discover where you can make adjustments. Taking time to do this now will pay off in the long run.
Examine Your Paycheck
Are your earnings correct? Are you withholding enough taxes? As mentioned at the top, any big life event (divorce, having a child, buying a home) can affect your taxes. If you need help, the IRS has a Tax Withholding Estimator that can help you figure out your income tax, credits, adjustments, and more. If you need to change anything, the Estimator will show you how to update your withholding with your employer or direct you to where you can submit a new W-4. Taking time to review could help you avoid an unwanted large tax bill and/or penalty come tax season.
Double-Check Deductions and Credits
Are you maximizing these? Early planning allows you to identify and leverage available deductions and credits, reducing your taxable income and potentially increasing your tax refund.
Increase Your 401K Contribution
Are you happy with your contribution? Can you increase it and still make ends meet? When you contribute more from each paycheck, you’ll decrease your taxable income for the year. Since employers usually have matching programs, it’s a great way to get free money and build your nest egg. Make sure you’re in it if your company offers this.
Convert a Traditional IRA to a Roth IRA
If you think you’ll be in a higher tax bracket when you’re in retirement, converting a traditional IRA into a Roth IRA is one way to reduce your tax payments in the long run. Here’s how it works. The money you contribute to a Roth IRA is taxed the moment you contribute, unlike a traditional IRA, which is taxed at the moment of withdrawal. When you convert to a Roth IRA, you’ll be paying taxes at your current rate instead of the (probably) higher tax rate in the future. Translated: You’ll pay taxes up front, which might be a big savings. Finally, Roth IRAs are not subject to the same Required Minimum Distributions as traditional IRAs are. That means more freedom when you want it most – when you retire.
Getting a handle on your finances by being proactive now gives you a great opportunity to take a breath, assess, and change direction if you need to. If anything, it will help prevent stress and scrambling in tax season. It’s safe to say that nobody wants that.
Right smack dab in the middle of summer might seem like the worst time to think about your taxes, but it’s actually the perfect time. Here’s what taking a pause in July allows you to do.
Get Organized
Do you have all your receipts? Are your records up to date? Did you move, get married, or change your name? If so, you’ll need to notify the IRS. In fact, you can create an individual IRS online account to look at your tax records, manage communication preferences, make payments, and more.
Take a Financial Snapshot
When was the last time you looked at your checking, savings or investments to see if you’re where you want to be? If you take the time now, you can start with January and analyze the big picture. You can see if you’re happy with the growth of your investments and discover where you can make adjustments. Taking time to do this now will pay off in the long run.
Examine Your Paycheck
Are your earnings correct? Are you withholding enough taxes? As mentioned at the top, any big life event (divorce, having a child, buying a home) can affect your taxes. If you need help, the IRS has a Tax Withholding Estimator that can help you figure out your income tax, credits, adjustments, and more. If you need to change anything, the Estimator will show you how to update your withholding with your employer or direct you to where you can submit a new W-4. Taking time to review could help you avoid an unwanted large tax bill and/or penalty come tax season.
Double-Check Deductions and Credits
Are you maximizing these? Early planning allows you to identify and leverage available deductions and credits, reducing your taxable income and potentially increasing your tax refund.
Increase Your 401K Contribution
Are you happy with your contribution? Can you increase it and still make ends meet? When you contribute more from each paycheck, you’ll decrease your taxable income for the year. Since employers usually have matching programs, it’s a great way to get free money and build your nest egg. Make sure you’re in it if your company offers this.
Convert a Traditional IRA to a Roth IRA
If you think you’ll be in a higher tax bracket when you’re in retirement, converting a traditional IRA into a Roth IRA is one way to reduce your tax payments in the long run. Here’s how it works. The money you contribute to a Roth IRA is taxed the moment you contribute, unlike a traditional IRA, which is taxed at the moment of withdrawal. When you convert to a Roth IRA, you’ll be paying taxes at your current rate instead of the (probably) higher tax rate in the future. Translated: You’ll pay taxes up front, which might be a big savings. Finally, Roth IRAs are not subject to the same Required Minimum Distributions as traditional IRAs are. That means more freedom when you want it most – when you retire.
Getting a handle on your finances by being proactive now gives you a great opportunity to take a breath, assess, and change direction if you need to. If anything, it will help prevent stress and scrambling in tax season. It’s safe to say that nobody wants that.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
In this second part of our two-part series on the One Big Beautiful Bill Act (OBBBA), we examine the legislation’s impact on businesses, trusts, and estates. In addition, we will look at its overall economic impact.
Estate Tax Changes
The federal estate tax exemption receives a significant boost under OBBBA. Previously set to go back to pre-TCJA levels at the end of 2025, the exemption is now permanent. For 2026, the exclusion is $15 million per person, adjusted for inflation annually. This represents a substantial increase from the 2025 exemption of $13.99 million per person.
Business Tax Benefits
OBBBA extends several key business tax provisions that were set to expire, ensuring continued tax relief for various business structures.
Pass-Through Entities benefit significantly from the permanent extension of the Section 199A deduction. This 20 percent deduction on business income that applies to LLCs, S corporations, and sole proprietorships was scheduled to expire at the end of 2025. The House’s proposed increase to 23 percent didn’t make the final cut.
Depreciationrules become more favorable permanently. The 100 percent bonus depreciation provision, which was phasing out, is now permanent. Additionally, the Section 179 expensing limit jumps to $2.5 million and begins to get phased out at $4 million.
Research and Development expenses can now be fully expensed for domestic R&D activities, replacing the previous requirement to amortize costs.
Employee Retention Credit Reforms
The pandemic-era Employee Retention Credit faces significant restrictions. Unpaid claims submitted after Jan. 31, 2024, are prohibited from receiving refunds. The legislation also introduces penalties for ERC mill promoters and extends the statute of limitations to six years.
Conclusion
This legislation represents a significant commitment to extending business-friendly tax policies while substantially increasing the federal debt burden. For businesses and high net-worth individuals, OBBBA provides long-term tax planning certainty by making temporary provisions permanent.
One Big Beautiful Bill Act: Part 2 – What the New Tax Law Means for Your Business
July 1, 2025 · Blog, Guest Article of the Month
⏱ 2 min read
Part 2
In this second part of our two-part series on the One Big Beautiful Bill Act (OBBBA), we examine the legislation’s impact on businesses, trusts, and estates. In addition, we will look at its overall economic impact.
Estate Tax Changes
The federal estate tax exemption receives a significant boost under OBBBA. Previously set to go back to pre-TCJA levels at the end of 2025, the exemption is now permanent. For 2026, the exclusion is $15 million per person, adjusted for inflation annually. This represents a substantial increase from the 2025 exemption of $13.99 million per person.
Business Tax Benefits
OBBBA extends several key business tax provisions that were set to expire, ensuring continued tax relief for various business structures.
Pass-Through Entities benefit significantly from the permanent extension of the Section 199A deduction. This 20 percent deduction on business income that applies to LLCs, S corporations, and sole proprietorships was scheduled to expire at the end of 2025. The House’s proposed increase to 23 percent didn’t make the final cut.
Depreciationrules become more favorable permanently. The 100 percent bonus depreciation provision, which was phasing out, is now permanent. Additionally, the Section 179 expensing limit jumps to $2.5 million and begins to get phased out at $4 million.
Research and Development expenses can now be fully expensed for domestic R&D activities, replacing the previous requirement to amortize costs.
Employee Retention Credit Reforms
The pandemic-era Employee Retention Credit faces significant restrictions. Unpaid claims submitted after Jan. 31, 2024, are prohibited from receiving refunds. The legislation also introduces penalties for ERC mill promoters and extends the statute of limitations to six years.
Conclusion
This legislation represents a significant commitment to extending business-friendly tax policies while substantially increasing the federal debt burden. For businesses and high net-worth individuals, OBBBA provides long-term tax planning certainty by making temporary provisions permanent.
Disclaimer
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
The rapid pace of technological change, particularly the integration of artificial intelligence (AI) in daily workflows, is reshaping the global economy and the nature of work. Today’s digital divide is no longer limited to internet access in underserved communities. The divide has now become a business risk impacting productivity, inclusion, and competitiveness.
What is the Workforce Digital Divide?
The digital divide refers to disparities mainly in access to technology and digital skills. The groups affected by this divide include older people, frontline employees, lower-income staff,f and people in rural or underserved urban areas.
In the workforce context, the digital divide includes a lack of proficiency with essential software, collaborative tools, data analysis, cybersecurity awareness, and other emerging technologies. This means it is no longer sufficient to just provide access to technology. Employees must be equipped with advanced knowledge, skills, and experience that will help leverage technology for more complex tasks.
In most cases, older employees are assumed to require training, but it is crucial to recognize that younger generations, although perceived to be digital natives, may lack specific professional digital skills.
According to the World Economic Forum, there are three skill sets that have become critical: carbon intelligence, virtual intelligence, and artificial intelligence. This also aligns with the high adoption of technologies such as big data, cloud computing, and AI, creating the demand for these new skills.
While technology is often seen as an equalizer, it can deepen existing gaps if poorly implemented. Lack of digital skills leads to:
Reduced productivity – workers who don’t have the digital skills take longer to complete tasks or avoid using the available technology tools.
Increased support costs – there are more help desk requests, longer onboarding periods, and fragmented communication workflows that create hidden costs.
Barriers to innovation – employees who don’t know how to use digital tools are less likely to suggest improvements or test new solutions.
Retention and equity risks – employees who don’t have the necessary digital skills feel disengaged, leading to turnover or missed promotion opportunities.
Reputation and customer experience – inconsistent internal digital experiences will often mirror the customer experience.
Main Causes of the Digital Divide
The main causes of the digital divide include:
Legacy systems – Businesses that still operate outdated technologies and manual processes. This slows down operations and also limits employees’ ability to develop the latest digital skills.
Training gaps – Digital education often focuses on corporate or technical teams. This leaves out the frontline and support staff.
Rapid tech evolution – New tools are rolled out faster than employees can adapt, creating friction and frustration.
Socioeconomic and educational gaps – Not all employees start from the same digital baseline, and this may be a problem if it goes unaddressed.
Although businesses don’t intentionally create this divide, failing to address it puts performance at risk.
How to Bridge the Digital Divide Gap
Employers must take proactive steps to close this divide by:
Prioritizing digital skills as a core competence – empowering the workforce with digital skills boosts confidence and adaptability. All employees, from the frontline staff to mid-level managers, should go through ongoing digital upskilling.
Ensuring equal access to tools and connectivity – all employees, regardless of their role or location, should have access to the necessary tools and bandwidth to do their jobs effectively.
Redefine hiring and promotions – hiring tech-ready employees only can promote inequality. However, a business can include digital skills training in the onboarding process. Promotion criteria should also be reviewed to ensure tech-savvy employees are not being intentionally favored.
Build partnerships and collaborations – partnering with technology providers who offer training resources and user-friendly tools is a great way to support employee upskilling. Organizations may also seek partnerships with government or non-profit initiatives that offer public programs for digital literacy.
Build a culture where digital growth is normal – digital transformation is also about creating a culture that encourages continuous learning and embraces change.
Conclusion
The digital divide has become a core business challenge. As technology evolves, companies must move beyond access alone and invest in digital skills, inclusive training, and a culture of continuous learning. Bridging this gap is essential for boosting productivity, retaining talent, and staying competitive in a digitally driven economy.
Addressing the Digital Divide within the Workforce
July 1, 2025 · Blog, What's New in Technology
⏱ 4 min read
The rapid pace of technological change, particularly the integration of artificial intelligence (AI) in daily workflows, is reshaping the global economy and the nature of work. Today’s digital divide is no longer limited to internet access in underserved communities. The divide has now become a business risk impacting productivity, inclusion, and competitiveness.
What is the Workforce Digital Divide?
The digital divide refers to disparities mainly in access to technology and digital skills. The groups affected by this divide include older people, frontline employees, lower-income staff,f and people in rural or underserved urban areas.
In the workforce context, the digital divide includes a lack of proficiency with essential software, collaborative tools, data analysis, cybersecurity awareness, and other emerging technologies. This means it is no longer sufficient to just provide access to technology. Employees must be equipped with advanced knowledge, skills, and experience that will help leverage technology for more complex tasks.
In most cases, older employees are assumed to require training, but it is crucial to recognize that younger generations, although perceived to be digital natives, may lack specific professional digital skills.
According to the World Economic Forum, there are three skill sets that have become critical: carbon intelligence, virtual intelligence, and artificial intelligence. This also aligns with the high adoption of technologies such as big data, cloud computing, and AI, creating the demand for these new skills.
While technology is often seen as an equalizer, it can deepen existing gaps if poorly implemented. Lack of digital skills leads to:
Reduced productivity – workers who don’t have the digital skills take longer to complete tasks or avoid using the available technology tools.
Increased support costs – there are more help desk requests, longer onboarding periods, and fragmented communication workflows that create hidden costs.
Barriers to innovation – employees who don’t know how to use digital tools are less likely to suggest improvements or test new solutions.
Retention and equity risks – employees who don’t have the necessary digital skills feel disengaged, leading to turnover or missed promotion opportunities.
Reputation and customer experience – inconsistent internal digital experiences will often mirror the customer experience.
Main Causes of the Digital Divide
The main causes of the digital divide include:
Legacy systems – Businesses that still operate outdated technologies and manual processes. This slows down operations and also limits employees’ ability to develop the latest digital skills.
Training gaps – Digital education often focuses on corporate or technical teams. This leaves out the frontline and support staff.
Rapid tech evolution – New tools are rolled out faster than employees can adapt, creating friction and frustration.
Socioeconomic and educational gaps – Not all employees start from the same digital baseline, and this may be a problem if it goes unaddressed.
Although businesses don’t intentionally create this divide, failing to address it puts performance at risk.
How to Bridge the Digital Divide Gap
Employers must take proactive steps to close this divide by:
Prioritizing digital skills as a core competence – empowering the workforce with digital skills boosts confidence and adaptability. All employees, from the frontline staff to mid-level managers, should go through ongoing digital upskilling.
Ensuring equal access to tools and connectivity – all employees, regardless of their role or location, should have access to the necessary tools and bandwidth to do their jobs effectively.
Redefine hiring and promotions – hiring tech-ready employees only can promote inequality. However, a business can include digital skills training in the onboarding process. Promotion criteria should also be reviewed to ensure tech-savvy employees are not being intentionally favored.
Build partnerships and collaborations – partnering with technology providers who offer training resources and user-friendly tools is a great way to support employee upskilling. Organizations may also seek partnerships with government or non-profit initiatives that offer public programs for digital literacy.
Build a culture where digital growth is normal – digital transformation is also about creating a culture that encourages continuous learning and embraces change.
Conclusion
The digital divide has become a core business challenge. As technology evolves, companies must move beyond access alone and invest in digital skills, inclusive training, and a culture of continuous learning. Bridging this gap is essential for boosting productivity, retaining talent, and staying competitive in a digitally driven economy.
Disclaimer
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
Running a small business often means working with a mix of people: some full-time staff, part-time helpers, seasonal workers or project-based contractors. While this flexibility helps manage costs and workload, it creates a crucial decision point that many business owners underestimate: properly classifying each worker.
The stakes couldn’t be higher. Companies like FedEx have paid nearly half a billion dollars for getting this wrong, and even tech giants like Microsoft and Lyft have faced costly legal battles over worker misclassification.
Why Classification Matters More Than You Think
The difference between an employee and an independent contractor goes far beyond semantics; it fundamentally changes your legal and financial obligations.
When someone is your employee, you must:
Withhold income taxes, Social Security, and Medicare taxes
Pay the employer portion of Social Security and Medicare taxes
Potentially provide benefits like health insurance and retirement plans
Consider offering stock options or other incentive programs
Pay severance or unemployment compensation when appropriate
Comply with wage and overtime requirements
When someone is an independent contractor, you:
Simply pay them for their work
Issue a 1099-NEC form at year-end
Have no tax withholding obligations
Owe no employment benefits
Face no severance obligations
The Control Test: Your North Star for Classification
The Internal Revenue Service uses one primary principle: control. The more control you exercise over how, when, and where work gets done, the more likely that person is your employee.
Think of it this way: if you’re micromanaging the work process, you’re probably dealing with an employee. If you’re only concerned with the end result, you’re likely working with a contractor. The 20 factors identified by the IRS in Revenue Ruling 87-41 can be found in full here.
The IRS Three-Factor Framework
Rather than getting lost in complicated checklists, focus on these three core areas:
1. Behavioral Control – Do you dictate not just what work gets done, but how it’s performed? Employees typically receive training, follow company procedures, and work within established systems. Contractors bring their own methods and expertise.
2. Financial Control – Who controls the business aspects of the work? Independent contractors typically:
Invest in their own tools and equipment
Handle their own business expenses
Have multiple clients or income sources
Set their own rates and payment terms
3. Relationship Type – What does your working relationship look like? Employee relationships typically feature:
Written employment contracts
Ongoing work arrangements
Benefits packages
Work that’s central to your business operations
Beyond Taxes: The Broader Impact
Worker classification affects more than your tax bill. The Department of Labor’s 2024 updates to the Fair Labor Standards Act mean misclassification can trigger wage and overtime violations. State labor departments are also cracking down, with some states presuming workers are employees unless proven otherwise.
When Things Go Wrong: Your Options
If you realize you’ve made a mistake, don’t panic. You have several paths forward:
Get an Official Determination: File Form SS-8 with the IRS for an official ruling on a worker’s status. While it takes at least six months, you’ll have certainty going forward.
Claim Safe Harbor Protection: If you had a reasonable basis for your classification and treated similar workers consistently, you may qualify for tax relief under Section 530.
Use the Voluntary Settlement Program: The IRS Voluntary Classification Settlement Program lets you reclassify workers prospectively while receiving some tax relief.
The Bottom Line
Your worker classification isn’t just an administrative detail – it’s a fundamental business decision with major financial implications. When in doubt, err on the side of caution or consult with employment law and tax professionals.
The cost of getting expert advice upfront is minimal compared to the potential cost of getting it wrong.
Navigating Worker Classification: The Critical Difference Between Employees and Independent Contractors
July 1, 2025 · Blog, Tax and Financial News
⏱ 4 min read
Running a small business often means working with a mix of people: some full-time staff, part-time helpers, seasonal workers or project-based contractors. While this flexibility helps manage costs and workload, it creates a crucial decision point that many business owners underestimate: properly classifying each worker.
The stakes couldn’t be higher. Companies like FedEx have paid nearly half a billion dollars for getting this wrong, and even tech giants like Microsoft and Lyft have faced costly legal battles over worker misclassification.
Why Classification Matters More Than You Think
The difference between an employee and an independent contractor goes far beyond semantics; it fundamentally changes your legal and financial obligations.
When someone is your employee, you must:
Withhold income taxes, Social Security, and Medicare taxes
Pay the employer portion of Social Security and Medicare taxes
Potentially provide benefits like health insurance and retirement plans
Consider offering stock options or other incentive programs
Pay severance or unemployment compensation when appropriate
Comply with wage and overtime requirements
When someone is an independent contractor, you:
Simply pay them for their work
Issue a 1099-NEC form at year-end
Have no tax withholding obligations
Owe no employment benefits
Face no severance obligations
The Control Test: Your North Star for Classification
The Internal Revenue Service uses one primary principle: control. The more control you exercise over how, when, and where work gets done, the more likely that person is your employee.
Think of it this way: if you’re micromanaging the work process, you’re probably dealing with an employee. If you’re only concerned with the end result, you’re likely working with a contractor. The 20 factors identified by the IRS in Revenue Ruling 87-41 can be found in full here.
The IRS Three-Factor Framework
Rather than getting lost in complicated checklists, focus on these three core areas:
1. Behavioral Control – Do you dictate not just what work gets done, but how it’s performed? Employees typically receive training, follow company procedures, and work within established systems. Contractors bring their own methods and expertise.
2. Financial Control – Who controls the business aspects of the work? Independent contractors typically:
Invest in their own tools and equipment
Handle their own business expenses
Have multiple clients or income sources
Set their own rates and payment terms
3. Relationship Type – What does your working relationship look like? Employee relationships typically feature:
Written employment contracts
Ongoing work arrangements
Benefits packages
Work that’s central to your business operations
Beyond Taxes: The Broader Impact
Worker classification affects more than your tax bill. The Department of Labor’s 2024 updates to the Fair Labor Standards Act mean misclassification can trigger wage and overtime violations. State labor departments are also cracking down, with some states presuming workers are employees unless proven otherwise.
When Things Go Wrong: Your Options
If you realize you’ve made a mistake, don’t panic. You have several paths forward:
Get an Official Determination: File Form SS-8 with the IRS for an official ruling on a worker’s status. While it takes at least six months, you’ll have certainty going forward.
Claim Safe Harbor Protection: If you had a reasonable basis for your classification and treated similar workers consistently, you may qualify for tax relief under Section 530.
Use the Voluntary Settlement Program: The IRS Voluntary Classification Settlement Program lets you reclassify workers prospectively while receiving some tax relief.
The Bottom Line
Your worker classification isn’t just an administrative detail – it’s a fundamental business decision with major financial implications. When in doubt, err on the side of caution or consult with employment law and tax professionals.
The cost of getting expert advice upfront is minimal compared to the potential cost of getting it wrong.
Disclaimer
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
If you are in the market for a new job or are interested in extracting more value from your current one, consider some of the newer trends in company benefits. The following is a primer on what might be available to help supplement your income with your current employer or benefits to look for when considering a position with a new company.
The standard employee benefit package usually includes insurance (healthcare, dental, disability, life), retirement plans, and paid time off. In addition, federally mandated employee benefits include unemployment insurance, workers’ compensation, and family and medical leave, plus employers are required to deduct and submit Federal Insurance Contributions Act (FICA) taxes to fund the Social Security and Medicare programs.
However, some companies also offer an array of free and/or voluntary benefits (which you can purchase via payroll deductions). Many employers offer discounted “group rates” on items people normally buy anyway, or perhaps wouldn’t otherwise consider due to the extra expense. It’s smart to review the full breadth of benefit options during open enrollment to see what types of benefits you could use and how they can save you money.
Employee Assistance Program (EAP)
Most EAPs offer a plethora of benefits you can and should use right now, and the plan is generally paid for by the employer. These programs connect employees to specialists who offer free or discounted services. For example:
Legal advice and services (making it a good time to get your will and estate plan in order, or seek consultation if you’re considering a divorce or suing your neighbor)
Financial advisors who specialize in areas such as investment management, taxes, budget and debt management, bankruptcy, and other financial concerns
Identity theft insurance coverage and services
Mental health counselors and therapists
Dependent caregiving resources (for children, disabled, or elderly family members)
Employee discounts on common household goods and services, such as electronics, cell phone/internet services, office supplies, restaurants, gyms, yoga studios, salons, entertainment venues, access to exclusive deals and discounts on products, service,s and experiences like theme parks, hotel,s and entertainment
Voluntary Benefits
Even if your company does not offer an EAP, it may offer the opportunity to buy some of those benefits at lower group-rated prices. For example:
Vision plans
Dental plans
Supplementary life insurance
Supplementary disability insurance
Pet insurance or a discount plan
Travel insurance
Auto insurance
Homeowner’s insurance
Identity Theft insurance
Critical Illness insurance
Hospital Indemnity Insurance
Long Term Care insurance
Financial Wellness
Given recent high inflation and market volatility, many workers are understandably worried about making ends meet and saving for the future. That is why many employers have introduced multifaceted financial wellness programs. Unfortunately, some employees are reluctant to use these benefits because they don’t want their employer to know anything about their financial situation. However, these benefits are outsourced to third-party professionals who are emboldened by confidentiality laws that do not allow them to release personal information to your employer.
Some common financial wellness benefits include free access to counselors on topics like creating and following a budget, paying down and avoiding debt, saving for short and long-term goals, and making investment decisions. Some programs offer educational opportunities, such as college and retirement planning seminars. There are also some newer, non-traditional benefits designed to help cash-strapped workers make ends meet, like diverting (and sometimes matching) paycheck income to an emergency fund, and enabling faster access to pay through an on-demand system in which employees can request pay for hours worked in lieu of waiting until the end of the pay period.
Housing Assistance
Considering the huge jump in home prices over the last few years, some employers have implemented benefits to help fund a down payment, facilitate access to low-interest rate mortgage loans, and offer group rates for home warranty and homeowner insurance policies.
Family Planning Benefits
If you’re considering using fertility programs to help you have children, be aware that this can be very expensive. That’s why many larger employers offer monetary assistance to help offset some of the expense of intrauterine insemination (IUI), in vitro fertilization (IVF), gestational surrogacy, and egg freezing.
Portability
While company benefits can be valuable while you work for that employer, be wary of paying into policies that end when you leave your job. Some volunteer benefits are portable, meaning you can keep them when you leave. However, you may lose your employer discount rate and wind up paying a higher premium for the same policy.
Bear in mind that one of the key questions to ask before enrolling in new benefits is whether the policy is transferable should you leave the company. Be sure to read the policy information and talk to HR or the policy’s insurance broker to understand the portability and group rate conditions. If it’s a benefit you can use right away (e.g., gym membership, even pet insurance), it might be worth buying. But if it’s a benefit you may not use for years down the road, AND you lose the benefit (or group premium) when you leave, you may be better off buying a similar plan on the individual market.
Job Shopping: What’s New in Company Benefits
July 1, 2025 · Blog, Financial Planning
⏱ 5 min read
If you are in the market for a new job or are interested in extracting more value from your current one, consider some of the newer trends in company benefits. The following is a primer on what might be available to help supplement your income with your current employer or benefits to look for when considering a position with a new company.
The standard employee benefit package usually includes insurance (healthcare, dental, disability, life), retirement plans, and paid time off. In addition, federally mandated employee benefits include unemployment insurance, workers’ compensation, and family and medical leave, plus employers are required to deduct and submit Federal Insurance Contributions Act (FICA) taxes to fund the Social Security and Medicare programs.
However, some companies also offer an array of free and/or voluntary benefits (which you can purchase via payroll deductions). Many employers offer discounted “group rates” on items people normally buy anyway, or perhaps wouldn’t otherwise consider due to the extra expense. It’s smart to review the full breadth of benefit options during open enrollment to see what types of benefits you could use and how they can save you money.
Employee Assistance Program (EAP)
Most EAPs offer a plethora of benefits you can and should use right now, and the plan is generally paid for by the employer. These programs connect employees to specialists who offer free or discounted services. For example:
Legal advice and services (making it a good time to get your will and estate plan in order, or seek consultation if you’re considering a divorce or suing your neighbor)
Financial advisors who specialize in areas such as investment management, taxes, budget and debt management, bankruptcy, and other financial concerns
Identity theft insurance coverage and services
Mental health counselors and therapists
Dependent caregiving resources (for children, disabled, or elderly family members)
Employee discounts on common household goods and services, such as electronics, cell phone/internet services, office supplies, restaurants, gyms, yoga studios, salons, entertainment venues, access to exclusive deals and discounts on products, service,s and experiences like theme parks, hotel,s and entertainment
Voluntary Benefits
Even if your company does not offer an EAP, it may offer the opportunity to buy some of those benefits at lower group-rated prices. For example:
Vision plans
Dental plans
Supplementary life insurance
Supplementary disability insurance
Pet insurance or a discount plan
Travel insurance
Auto insurance
Homeowner’s insurance
Identity Theft insurance
Critical Illness insurance
Hospital Indemnity Insurance
Long Term Care insurance
Financial Wellness
Given recent high inflation and market volatility, many workers are understandably worried about making ends meet and saving for the future. That is why many employers have introduced multifaceted financial wellness programs. Unfortunately, some employees are reluctant to use these benefits because they don’t want their employer to know anything about their financial situation. However, these benefits are outsourced to third-party professionals who are emboldened by confidentiality laws that do not allow them to release personal information to your employer.
Some common financial wellness benefits include free access to counselors on topics like creating and following a budget, paying down and avoiding debt, saving for short and long-term goals, and making investment decisions. Some programs offer educational opportunities, such as college and retirement planning seminars. There are also some newer, non-traditional benefits designed to help cash-strapped workers make ends meet, like diverting (and sometimes matching) paycheck income to an emergency fund, and enabling faster access to pay through an on-demand system in which employees can request pay for hours worked in lieu of waiting until the end of the pay period.
Housing Assistance
Considering the huge jump in home prices over the last few years, some employers have implemented benefits to help fund a down payment, facilitate access to low-interest rate mortgage loans, and offer group rates for home warranty and homeowner insurance policies.
Family Planning Benefits
If you’re considering using fertility programs to help you have children, be aware that this can be very expensive. That’s why many larger employers offer monetary assistance to help offset some of the expense of intrauterine insemination (IUI), in vitro fertilization (IVF), gestational surrogacy, and egg freezing.
Portability
While company benefits can be valuable while you work for that employer, be wary of paying into policies that end when you leave your job. Some volunteer benefits are portable, meaning you can keep them when you leave. However, you may lose your employer discount rate and wind up paying a higher premium for the same policy.
Bear in mind that one of the key questions to ask before enrolling in new benefits is whether the policy is transferable should you leave the company. Be sure to read the policy information and talk to HR or the policy’s insurance broker to understand the portability and group rate conditions. If it’s a benefit you can use right away (e.g., gym membership, even pet insurance), it might be worth buying. But if it’s a benefit you may not use for years down the road, AND you lose the benefit (or group premium) when you leave, you may be better off buying a similar plan on the individual market.
Disclaimer
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
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