Thanks to the changes resulting from the passage of the tax reform law, employee benefits programs are or will be improving.
Willis Towers Watson, as reported in NAPA Net, surveyed over 300 large and mid-sized employers with 66% of those surveyed indicating they will probably be improving their benefits. Many companies have already done so. The top three targets:
- 34% are expanding their personal financial planning
- 26% are increasing their 401(k) contributions
- 19% are increasing or accelerating their pension plan contributions
49% of those surveyed indicated they will be making a change to at least one of these programs either this year or in 2019.
Other possible changes being considered are:
- Increasing health care subsidies
- Reducing or holding flat payroll deductions
- Adding new paid family leave programs in keeping with the Family Medical and Leave Act’s tax credit available for certain employees
64% of the employers have, or are planning/considering changes to their broad-based compensation programs with the most common actions under consideration:
- 43% are considering reviewing their compensation philosophy
- 36% are considering pay gap situations
- 21% are considering either doing a one-time bonus to all employees, or starting a profit-sharing payout
A full 41% of the surveyed companies either have, or are planning changes to their executive pay plans as well.