With an increase in multiple companies offering attractive salaries to their employees, the toughest task for HR of a small or medium-sized company is to attract fresh talent without losing much from the pocket. 72% of employees stated having more work benefits would increase job satisfaction. While providing flexible tax benefits to employees is a great alternative, there are some challenges the HR department faces with them:
- Understanding the tax-cutting preferences of each employee
- Come with a plan that is feasible for the company as well as its employees
- Adding tax-free benefits integrated into the debit card itself saves much tax amount and helps the employee.
Employee Tax Benefits is a crucial marker for every company to build trust with their employees. With a lack of professionalism in tax benefits- the stats say 51% of the unhappy employees in the organization lose value towards the organization.
How to overcome the challenges?
Providing tax benefits in a single card is a great option, beneficial to both the employer and the employee- concerning tax deductions. Here is how HRs can plan out Employee Tax Benefits:
1. Maintain a Payroll Schedule: Most companies follow the monthly payroll schedule, and some emerging companies even opt for bi-weekly schedules. Depending on the company’s volume and frequency of profit turnover, this decision has to be taken.
2. Have a thorough knowledge of the types of taxes: India has an intricately beneficial tax system that divides citizens from the corporates. The corporate tax for businesses has also undergone a huge change over the times. Getting a thorough understanding of various corporate taxes can help the organization to plan the gifting strategies.
3. Correctly taxing benefits-in-kind: Organizations can attract the best talent by offering benefits-in-kind. Most of the times, tax on benefits-in-kind varies from income tax and identifying the benefits with the most optimal cost for the company is challenging. Disbursing employee benefits with SAVE overcomes issues like payroll fraud, minimising human error, and more.
Offering tax benefits traditionally involves huge paperwork and managing employee tax data regularly becomes a big challenge. There is a high possibility of losing the information, and confidentiality issues arise. At this juncture, every penny can be useful for the employee.
With social distancing being the norm and most companies working at home, digitizing tax benefits makes transactions and documenting extremely comfortable.
Zaggle Save offers tax-saving benefits digitally via a single card and empowers employees to choose from 9+ options. Some of the attractive benefits employees can avail are:
- Meal benefits – 500,000+ Visa/RuPay food courts accept our card- online/offline
- Fuel benefits
- Telecom and Broadband Benefits
- LTA: Easy to use wallet for air travel with fewer hassles
- Gift allowance
- Allowances for Books and Periodicals
Choose Zaggle Save to scale effective team building, employee retention, and brand loyalty.
