Look past health insurance and the 401(k) in your benefits portal for perks that pay for things you buy or would use, like transit, classes, and counseling. They’re easy to miss because they sit in the portal instead of your paycheck. Put a dollar value on each one, then enroll before any deadline passes.
Say you’re in the 22% federal bracket, pay the usual 7.65% Social Security and Medicare tax, and buy a $150 monthly transit pass with take-home pay. Paid through your employer’s pre-tax commuter benefit instead of from take-home pay, that $1,800 a year skips both taxes, which saves about $530.
To find perks like that, go past the enrollment screens to the benefits guide or the portal’s full list, or ask HR for the complete summary. Look for:
- Commuter benefits that cover transit passes and parking for your commute with pre-tax dollars, up to a monthly IRS limit
- Tuition assistance, which can be tax-free up to a federal annual cap and in some plans also pays down student loans
- An employee assistance program (EAP), with free, confidential counseling sessions and often legal and financial consultations
- A group legal plan, which covers routine legal help such as a will for a monthly premium
- Other perks, such as discounts, wellness stipends, and backup childcare
Then sort them by deadline. An EAP usually needs no enrollment and often extends to your household, so it’s ready the day anyone needs it. You can join a commuter benefit in any month, for the months that follow. You usually pick a group legal plan at open enrollment or when you’re hired, and tuition assistance often needs approval before you sign up for a class, so check those dates first.
Next, put a dollar figure on each perk. A pre-tax benefit is worth what you spend times your tax rate, payroll tax included. An employer-paid perk is worth what you’d otherwise pay for it, whether that’s a class or a counselor. A paid plan, like legal coverage, is worth the fees it saves you minus its premium. Subtract any strings attached, such as tuition you’d have to repay if you quit within a set period.
Total those figures at every open enrollment and whenever you start a new job, and set the sum next to your salary. It’s part of what the job pays, and every perk you’d use but skip is compensation you turned down.
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