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Key Employee Benefits

Non-Qualified Benefits

Non-qualified benefits are benefits that do not meet the criteria set by the Internal Revenue Service (IRS) for qualified benefits, such as 401(k) plans or health insurance plans. These benefits are typically offered to key employees as part of their compensation package and are designed to provide additional incentives for them to stay with the company.

Here are some examples of non-qualified benefits that companies offer to their key employees:

  • Supplemental executive retirement plans (SERPs): These plans are designed to provide additional retirement benefits to key employees beyond what they would receive from a qualified plan like a 401(k). SERPs are typically unfunded and are promised by the company as part of the employee's overall compensation package.

  • Deferred compensation plans: These plans allow key employees to defer a portion of their compensation to a later date, typically after retirement. The deferred compensation is not taxed until it is paid out, which can provide significant tax benefits to key employees.

  • Stock options: Stock options provide key employees with the opportunity to purchase company stock at a discounted price. This can be a significant financial incentive for key employees who believe in the long-term success of the company.

  • Performance-based bonuses: These bonuses are typically awarded to key employees based on their performance or the performance of the company. They can provide a significant financial incentive for key employees to perform at their best and contribute to the success of the company.

  • Health and wellness benefits: These benefits are not always considered qualified benefits, and may include things like concierge medical services, executive physicals, or access to specialized health and wellness programs.

Overall, non-qualified benefits are an important tool for companies to use to attract and retain their top employees. These benefits can provide significant financial incentives and help key employees feel valued and appreciated, which can lead to increased job satisfaction, productivity, and overall success for the company.

Schedule a Employee Benefits Review

As an employer, it's important to regularly review and update your employee benefits package to ensure that it is meeting the needs of your organization and your employees. An employee benefits review can help you identify areas where your benefits package may be falling short, and make changes to better support your workforce. This review should take into consideration factors such as employee feedback, industry trends, and your organization's budget. Consider working with our benefits specialists to help you conduct a thorough review and make informed decisions about changes to your benefits package. By investing in your employees' well-being through a strong benefits program, you can attract and retain top talent and create a more productive and engaged workforce.

Schedule a Review

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