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Cleaning Up the Benefits Mess

Aberdeen HCM Essentials

The average organization negotiates a 401(k) offering with a standardized match program for employees while senior management and the c-suite are provided with more expansive compensation plans. Repayment allows employers to offer payment as a benefit, targeting employee compensation to a specific use while avoiding payroll taxes.

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Cleaning Up the Benefits Mess

Aberdeen HCM Essentials

Repayment allows employers to offer payment as a benefit, targeting employee compensation to a specific use while avoiding payroll taxes. The result of this model, as evidenced by a recent Columbia University case study, is that employees pick up the slack for the fallout in the form of higher out-of-pocket costs.