When you hear the words “hidden paycheck” you and your employees usually associate it with health benefits, 401ks, and IRAs. HR professionals often use the term “hidden paycheck” to refer to the employer’s contributions to employee benefits of which employees are generally unaware.  Let’s take a moment to quickly review what qualifies as hidden paycheck items. The first few are state and federally mandated items such as:

Social Security:  

             The cost is shared by the employer and employee.

·                 The maximum wage base for the Social Security tax is set annually; if an employee earns over the          amount, the excess is not taxed. (SHRM, 2008)

Workers Compensation:

·                  Fully funded by the employer

          · This is a state-based program that provides medical treatment, wage loss reimbursement, vocational        rehabilitation, and death/burial benefits to victims (or surviving dependents) for industrial accidents          and occupational diseases. (SHRM, 2008)

Unemployment Insurance:

            · This is a combined federal and state program that began during the Great Depression.  

·               Unemployment benefits are awarded to individuals who are ready, willing, and able to work and               unable to find suitable work. The cost is fully funded by the employer.

As mentioned earlier this list is the more commonly known items:

• · Health insurance
• · Prescription drug insurance
• · Dental insurance
• · Vision insurance

         · Commuter benefits such as parking permits, transit fare, meter cards, etc.

         · Retirement/pension plan – in some cases 100% employer paid

·            Employer match to employee 401(k) contributions

·                  Term life insurance

             · Accidental death and dismemberment insurance

             · Short-term disability insurance

             · Long-term disability insurance

             · Long-term care insurance

We are also familiar with paid time off, incentive pay, tuition assistance and company paid socials.

Most small business owners can’t afford to give their employees all of the perks listed but there are several on the list that you’d be surprised that you can offer and others that are mentioned below that would “add value” to your company and can benefit in helping you become an employer of choice.

Some of the additional insurances such as long and short term are great to offer and they can be little to no cost for the employer. Offering direct deposit is great because it offers a convenience to your team members.

Partnering with local businesses to offer a discount or a “free” item to your staff for coming in will set you apart. Health clubs are generally supportive of a discounted membership program and in many cases without any financial commitment from the employer. Lunch and Learns with free products or special offers is also a great no cost idea. The most beneficial hidden paycheck programs are partnering with businesses that have shared interests or sell a product that would be a good fit for your staff and theirs. I have worked in hospitality for years and we made ID cards that could be used at area businesses to get a percentage off or a free item. Our program included a Chiropractor that offered a free consultation and 1^st adjustment, a bank that offered free checking accounts with free checks, a lunch spot that offered a free soda or free upgrade in order size and a dry cleaner that gave 20% off, in exchange we offered them a discount on a stay or on dining at one of our restaurants. We were also able to get some national companies involved for cutlery discounts for the culinary staff, Dell participated offering a discount, we had a shoe supplier give a discount as well and these were all at no cost to the employer. An added bonus is payroll deduction through some of these companies to offset the more expensive items.

The possibilities truly are endless. As a small business it is easy to look at these lists and dismiss them thinking you can’t afford any of these items because you’re not big enough, as you can see that is no longer true. You can be a small business with perks and added value making you an employer of choice.

Pat Eardley