New Job, New Benefits: How to Make the Most of Your Employee Perks

Congratulations on starting a new job! During this exciting transition, it’s easy to overlook important details of the new hire process. However, if you want to expand your financial security and enhance your personal wellbeing, you should take advantage of everything your new employer offers. Many employers these days understand how important employee benefits are and will offer retirement plans, tuition reimbursement, gym membership discounts and more. When starting a new job, the most important benefits to review often include:

• Direct Deposit
• Insurance Plans (health, dental, vision, disability)
• Retirement Plans
• Paid Time Off and Sick Time
• Tuition Reimbursement or Education Assistance
• Pre-tax Benefits (HSA, FSA, commuter benefits)

1. Set Up Direct Deposit

Direct deposit has become something that everyone uses and is often the fastest way to get your wages into your bank account. One thing to keep in mind when setting up direct deposit is that it can take up to two pay periods for it to take effect. Knowing this, if money is tight, it’s always a good idea to pause any automatic payments, bills, or payments on your account to prevent overdrafts. Once direct deposit is confirmed and set up correctly, feel free to update your account’s billing and automatic payments! The routing number for Securityplus Federal Credit Union is: 252076714

2.Review Your Insurance Plans

When you first start a job, you'll typically be offered a range of insurance benefits. These employee benefits may include health, dental, vision, and disability insurance. However, you may only be able to adjust your choices once a year during open enrollment. This enrollment could be sooner if you experience a life event such as getting married or having a child. During open enrollment, your employer will provide you with information on how to make changes to your policy. Be sure to ask your employer when their open enrollment period is each year.

On top of traditional health, vision, and dental policies, most employers offer some form of disability insurance, which can help replace your income if you are unable to work. Short-term disability insurance typically covers you for up to six months, while long-term disability insurance covers extended periods of time. You will need to review your company’s policy to know how much coverage you’ll have and what the waiting periods and payout percentages are.

Be sure to review your options carefully each year to ensure you're making the best choices for your needs.

3. Plan for Retirement

Many employers offer 401(k) or IRA plans, which allow you to contribute a portion of your paycheck to a retirement savings account. Some companies also offer a matching contribution, meaning they will contribute to your 401(k) or IRA based on how much you put in. All of your contributions are made pre-tax, reducing your taxable income. Be sure to review your employer’s matching policies, contribution limits, and the investment options available in the plan.

If you have a retirement account from a previous employer, consider whether you should roll it into your new employer’s plan or an IRA. This is also a great time to review and update your beneficiaries on any retirement accounts of life insurance policies. Consider consulting a financial or tax professional for help with this.

4. Understand Your Paid Time Off (PTO)

One of the most valuable benefits for an employee is Paid Time Off (PTO). PTO allows you to take days off from work while still receiving your usual salary. The amount of PTO you can earn varies depending on your company, your seniority and other factors. In addition, the amount of PTO you have also typically varies based on the length of employment. Some companies also offer sick time in addition to PTO. Make sure you discuss your PTO and how you can request time off with your employer.

5. Take Advantage of Tuition Reimbursement

Are you looking to further pursue your education or professional development? Many companies provide financial support for employees to attend college courses, complete degree programs, or certifications. Some programs can also cover the cost of attending technical training or certification exams. This benefit can be a great way to enhance your skills without thinking of the cost of education.

6. Take Advantage of Pre-Tax Benefits

It’s easier than you think to reduce your taxable income. When you make contributions to retirement accounts, health savings accounts (HSAs), and flexible spending accounts (FSAs), they are typically deducted from your paycheck before taxes. These benefits may lower the amount of income you owe in federal taxes. Some companies even offer pre-tax commuter and parking benefits, which can further reduce your tax liability.

7. Ask Questions and Stay Informed

As you navigate your new employee benefits, don’t hesitate to ask questions! Your company’s HR team can help explain everything in detail and assist with enrollment. The more you understand about the options available to you, the better you can take advantage of your workplace perks.

By learning more about these essential benefits and taking the necessary steps to enroll in them, you can ensure that you're making the most of what your new job has to offer. If you understand all that can be offered for insurance, retirement plans, PTO, and other perks, it will not only benefit your personal finances but also your happiness in your current role.