Savings
The fact is that with the right knowledge applied to benefits planning, companies
and employees can save a lot of money over time. Not only are we here to help, but we're also
dedicated to making it easier for companies and simpler for employees. In the following two
examples, you can see just how big a difference STARsmart Benefits Planning makes:
How Companies Save Money:
Reduced Employee Turnover - According to one HR manager's data, from 2002-2004, the
world's largest meat packing plant reduced its employee turnover from 44% to 21%. This converts to
savings exceeding $3,775,000.00. A central component in those savings was the benefits service
provided by Star Robbins & Company.
Tax Savings - From section 125 pre-tax elections both the company and the employees save. Working
with Star Robbins & Company, one client saved over $750,000.00 in FICA taxes, and the employees
collectively saved over $3,000,000.00 since the summer of 2000, when the first pre-tax options
were approved.
Production Savings from Increased Employee Productivity - Although hard to quantify, it is a fact
that happy employees perform better. Substantial savings are realized over time from improved performance.
How Employees Save Money:
Flexible Spending Accounts - The fact is that employees can save a lot of
money over time and improve their benefits planning. With a Section 125 Cafeteria Plan they can
get more spendable income and also pick their own benefits.
1) Medical Spending Account - his is an account that covers out-of-pocket medical expenses
for employees and their families--expenses like dental, braces, eye care, deductibles, co-payments,
chiropractors, prescriptions, and many others.
2) Dependent Spending Account - this account gives employees the cost of child or dependent
care while they and thier spouses work. The dependent must be under 13, or a physically or mentally
disabled dependent of any age. The IRS allows up to $5000 a year for this account. Both types of
spending accounts allow them to be paid dollars that are tax-exempt, so taxes are reduced. They get
more spending money from they pay (spendable income.)
Example of Section 125 Savings
The bottom line is Mary gets $92.00 spendable income each month. That's an annual savings of $1,104.00 just for taking advantage of a Cafeteria Section 125 Benefit Plan.