Financial wellbeing is an essential component of overall health, affecting a person’s mental state, productivity, and ability to cope with any challenges that may arise. Yet the current economic climate is taking its toll on employees’ financial wellbeing, as inflation starts to bite. More than six in ten employees are currently stressed about their finances, a recent Bank of America survey found. Eight in ten are concerned about inflation, while more than seven in ten feel the cost of living is rising faster than their salary, leaving them worse off as time goes on. Little wonder, perhaps, that 97% of employers now feel a sense of responsibility for their employees’ financial wellness, up from 41% in 2013.
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The good news is that it’s never been easier to provide resources for employees to understand their finances better and plan for the future. Intuit Quickbooks Payroll is taking active steps to help small businesses facilitate financial wellness for their employees through easy-to-use HR and payroll software, and through services such as a personal HR advisor. Quickbooks Payroll allows small business owners and managers to automate payroll, ensuring employees are paid correctly and on time, but also to manage 401(k) retirement plans and health insurance payments, taking the stress out of financial planning for employees and enhancing their financial wellbeing.
35% of employees search for a new job for better benefits
It’s not just the employees who benefit when employers are proactive about financial wellness; with one in five employees thinking of switching jobs within the next year, offering such benefits can help with employee retention. Happier, less financially stressed employees are also more likely to be loyal, satisfied, engaged, and productive. Now that’s what you call a win-win situation.
What is Employee Financial Wellbeing?
The Financial Health Institute defines financial health as “the dynamic relationship of one’s financial and economic resources as they are applied to or impact the state of physical, mental, and social well-being.” They point to the World Health Organization’s definition of ‘health’ as not just an absence of illness, but “a positive concept emphasizing social and personal resources, as well as physical capacities,” and “a resource for everyday life.” In other words, the more financial stability and flexibility a person has, the more likely they are to be able to face the challenges, including mental and physical, that life throws at them.
Unfortunately, the current economic climate is not conducive to financial wellbeing. A recent survey by Bankrate found that four in ten Americans have fewer savings this year than they did last year, and nearly three-quarters are saving less this year than last, due to high inflation and other economic factors. Consequently, only 43% of Americans said that they would pay for an unexpected expense of $1,000 from their savings, while a quarter said they would have to take out credit card debt to do so – a record number since polling began in 2014. 36% of Americans now have more credit card debt than savings for use in emergencies, again, the highest on record since 2011.
Less than half of small business employees get retirement benefits
However, headline figures slightly obscure the true picture as they include the very young, who have not yet taken on debt, and retired people, who have relatively little debt. Among those of prime working age, between 27 and 58 years old, some 44.5% have more debt than savings, up from 28% just a year ago – that’s a staggering rise of 16.5 points in just twelve months. That figure alone demonstrates the difference the current poor economic conditions can make to employees, drastically impacting financial wellbeing and, by extension, employee performance.
Automated Software Can Help
Even in this economic climate, there is a lot that employers can do to enhance the financial wellbeing of your employees, no matter how big or small your organization is. One of the most straightforward is the use of an automated payroll system such as Quickbooks Payroll to ensure that salaries are paid accurately and on time. Simply knowing that they can rely on their salary relieves an enormous amount of stress for employees, which translates into happier, more productive people in the workplace.
But payroll is just the start. Good accountancy software such as Quickbooks Payroll now integrates seamlessly with other accounting functions and HR practices, allowing employers to offer a range of benefits and programs that can enhance employee financial wellbeing. Let’s take a deeper dive into some of those functions, and find out how Quickbooks Payroll is helping employers to safeguard their employee’s finances.
QuickBooks’ Efforts to Prioritize Employee Financial Wellbeing
Employees value benefits included in their remuneration package – one in ten even say that they would take a lower salary in return for better benefits, according to Forbes. Mindful of the key role that benefits play in attracting and retaining talented employees, Quickbooks has partnered with financial experts and organizations to offer seamless automated benefits payments as part of your payroll software.
87% of employees would take more benefits over a pay raise
It’s probably no surprise that health benefits routinely top the list of benefits most desired by employees when looking for a new job, or when considering a move. We all worry about how we might look after loved ones and retain hard-earned assets should illness strike; it’s only natural, then, that a solid healthcare package can really set employees’ minds at ease and enhance their financial wellbeing.
Quickbooks Payroll has teamed up with SimplyInsured to offer medical, dental, and vision insurance at a budget to suit your business and employees’ needs. The value, deductibles, coverage, and costs of each plan can be easily compared so that you can easily choose the plan that’s right for you, and applying takes just ten minutes. Best of all, Quickbooks’ payroll software automatically calculates the payments to be made each month and adds them to the payroll accounting, so you know the values are correct, and payments are being made accurately.
Health worries aren’t only down to illness. Unfortunately, workplace accidents can still happen no matter how much attention is paid to workplace safety, and a bad accident can significantly impact an employee’s ability to work and provide for their family. Not only can a good comp package take some of that worry away for employees and employers alike, but it’s also actually a requirement in all states except Texas.
Quickbooks Payroll is collaborating with Next to offer workers comp’ plans that integrate with your payroll. Simply choose your plan, connect it to your payroll account and let the software take care of the rest.
A good retirement plan is an essential component of long-term financial stability, and can really help put workers’ minds at rest about what their financial future holds. Yet too many workers still aren’t saving adequately for retirement – with the shortfall landing disproportionately on women. Quickbooks has partnered with Guideline to help employers offer affordable, easy-to-manage 401(k) plans to employees.
Quickbooks offer three levels of plans to suit every budget. Core is ideal for small businesses wanting to make a contribution to their employees’ 401(k) plan; Flex is perfect for those who want the flexibility to choose their own features to meet personalized goals; and Max offers the most customizable options, allowing businesses to maximize savings and gain access to expert help. We can help you find the plan that’s right for you.
HR is easy when you first set out in business: if you started as a solopreneur, you only had yourself to worry about. But as your enterprise expands and you start taking on staff, laws and regulations start to come into play, along with employee expectations. To avoid having to wade through mountains of regulations and best practice papers yourself, Quickbooks Payroll has partnered with Mineral Inc to offer an HR advisory service to our customers. They can help with a whole host of HR functions, including recruitment, onboarding, career development and legal compliance, but they can also help you to offer financial education workshops, and resources to enhance your employees’ financial wellbeing.
Going Beyond Benefits
As alluded to above, enhancing your employees’ financial wellbeing doesn’t only have to be about putting money into their paychecks as salary or benefit payments. Sometimes, all it takes are some words of advice and support from a friendly expert.
Increasingly, companies are offering bespoke financial wellness programs for their employees. The best of these programs involve sitting down with employees to figure out how they can set and stick to a budget to get out of debt or start saving for life goals like home ownership and retirement. Others might involve offering a financial planning course or literature on the subject.
Company culture is also an essential component of employee financial wellness. Business owners may also want to consider the culture of their company, and whether it offers a supportive environment when it comes to financial wellbeing. Simply being able to discuss financial concerns with a line manager, or, in smaller organizations, with the owner, can greatly dissipate any concerns that employees may have about their financial situation. Conscientious employers may want to conduct an audit of their company’s culture, whether through anonymous surveys or a series of friendly company-wide conversations, to identify ways to improve company culture when it comes to financial wellbeing.
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High inflation and an uncertain economic outlook have taken their toll on employees’ financial wellbeing in 2023, eroding savings and pitching more people into debt. At the same time, employers feel a greater sense of responsibility for their employees’ financial wellbeing than ever before. Thankfully, automated payroll systems can do a lot to put both business owners’ and employees’ minds at ease when it comes to financial planning, chief among them: simply making sure that employees are paid accurately and on time.
Mindful of the current economic climate, Quickbooks Payroll has partnered with a range of expert organizations to help small business owners go a step further and offer reliable financial planning products and services. Quickbooks customers can use their account to automate 401(k), health insurance, and workers comp payments, taking the stress out of managing these vital benefits.
Intuit Quickbooks Payroll customers can also benefit from the services of an HR expert, who can help roll out financial wellness programs and workshops, adding value to employees above and beyond financial help in their paychecks. To get the most out of the outstanding features Quickbooks Payroll offers when it comes to employee wellbeing, take a look at what they can offer you today.
Payroll software helps you to manage all things payroll. It automates employee pay and maintains human resource records like time and attendance. Payroll software saves lots of time for HR leaders and reduces paycheck errors—this leads to a more satisfied employee and fewer issues for management to deal with.How do you promote financial wellness for employees? ›
- Attend an on-site financial education seminar.
- Learn about your company's financial benefits (through a webinar, online resources or in-person meeting)
- Begin a debt cleanse.
- Set a monthly savings goal.
- Pack a healthy lunch.
These programs are aimed at educating employees to help them manage their money and reduce financial burdens. Financial wellness programs may include features such as personal financial coaching on specific topics, online education, budgeting tools, and credit resources.Do employees want financial wellness programs? ›
A new study from Bank of America has found that 84% of employers now say offering financial wellness tools can help increase employee retention.What are payroll benefits to employees? ›
Employee benefits are any forms of perks or compensation that are provided to employees in addition to their base salaries and wages. A complete employee benefits package may include a health insurance plan, life insurance, paid time off (PTO), profit sharing, retirement benefits, and more.How does payroll help employees? ›
A payroll system helps to ensure employees are paid the correct amount on time. Tax compliance: One of the most difficult parts of processing payroll is accounting for tax withholdings.What are 7 ways that can improve financial wellness? ›
- Create a budget that works for you. ...
- Consider rolling your debts into one. ...
- Try to save a bit of money regularly. ...
- Set aside some emergency cash. ...
- Be open to talking money with your partner.
- Receiving a meaningful financial education.
- Saving regularly.
- Using credit for everyday essentials.
- Accessing debt advice, and.
- Planning for and in later life.
- Use a Budget. ...
- Be Aware of How You Spend Your Money. ...
- Automate Your Savings. ...
- Build Your Savings. ...
- Plan for Major Purchases. ...
- Save Early for Retirement. ...
- Handle Credit With Care. ...
- Keep Financial Records.
When employees feel their employers care about their health and well-being, they're 38 percent more engaged. Investing in financial wellness boosts the overall well-being of employees, increasing their health, productivity and engagement.
That amounts to a 6-to-1 return on your investment.
Wellness programs help your business save money by reducing your cost for disease management by as much as $136 per member per month, according to a Rand Wellness Program study. The more employees you encourage to participate, the greater your returns will be.
- Learning how to manage your money and establishing a personal budget.
- Not living beyond your means.
- Making a plan to pay back your student loans.
- Learning about debt and how to manage it.
- Building good credit.
Harvard University researchers discovered that employers save $2.73 for every dollar they spend on an employee wellness program. You could literally triple your cost savings by reducing absenteeism and healthcare premiums.Do employee wellness programs increase productivity? ›
Employee health management or wellness programs can have a direct impact on presenteeism and are the best practical solution to curb the hidden costs of presenteeism and increase productivity. There is ample evidence that properly implemented worksite wellness programs can improve employee health and productivity.What are financial wellness initiatives at work? ›
Employee financial wellness ideas are programs, activities, and events that can help employees become more financially responsible. Examples include a cost-of-living raise, personalized financial training, and legal assistance.What is an example of a payroll benefit? ›
Employee benefits are any form of indirect compensation paid to employees over and above regular salaries or wages. This can include health insurance, retirement benefits, and paid time off, for example.What are types of payroll benefits? ›
- Medical insurance.
- Life insurance.
- Disability insurance.
- Retirement contributions and pension plans.
When learning how to do payroll, taxes are the most important thing to remember. Federal, state, and local taxes are withheld from an employee's paycheck. An employer must know the current tax rates and include income tax, social security, and Medicare fees so he can properly calculate what the payroll tax should be.What is the most important part of payroll? ›
1. Keeping employee payroll records. Well-kept employee records are crucial to accurately paying your employees what they're owed. You'll want to keep detailed records about your employee's salary or hourly rates and the time they worked.Why is keeping payroll so important? ›
Payroll is one of the most important aspects of business. It affects employee morale and reflects a business's financial stability and reputation. Because employees rely on their paychecks, errors or untimely payment can create a lack of trust.
Are you financially healthy? Many financial experts agree that financial health includes four key components: Spend, Save, Borrow, and Plan. It is crucial that you actively work on improving the health of each one.What are the 5 steps to financial wellbeing? ›
Five Steps to Financial Wellbeing is a toolkit to help readers of all ages and life stages establish a healthy, positive relationship with money, avoid problem debt, save and invest for the future and above all, take control of your finances instead of letting your finances control you.What are the 8 strategies to follow to obtain a secure financial future? ›
- Track Your Spending.
- Live Within Your Means.
- Don't Borrow to Finance a Lifestyle.
- Set Short-Term Goals.
- Become Financially Literate.
- Save What You Can for Retirement.
- Don't Leave Money on the Table.
- Take Calculated Risks.
“Financial wellness is more action-oriented and is the positive steps a person can take to lead a healthier financial life. Financial well-being is more of a holistic, emotional state that focuses on contentment, balance, positivity and confidence.”What makes up financial wellness? ›
Practicing financial wellness means learning how to build a budget, use debt, save enough, invest properly and use insurance. It means incorporating these skills in your day-to-day life so you can meet their present and future goals.Why is financial wellness important? ›
Financial wellness is important because it equips us with the knowledge and skills we need to manage money effectively. Keeping track of expenses and making a budget and sticking to it are important skills to have in order to be financially responsible and independent.What is the first step to financial wellness? ›
The first step toward financial wellness is budgeting. This involves determining one's monthly income and expenses and setting limits on how much can be spent in each category. A budget helps you understand where your money is going, which helps you adjust your spending habits. Saving is another important aspect.What are 2 ways to improve your financial health? ›
- Live within your means. ...
- Spend wisely. ...
- Free up funds. ...
- Build emergency savings. ...
- Avoid excessive borrowing and manage your existing debt. ...
- Save for the future. ...
- Protect what matters. ...
- Beware of scams and fraud.
- Get advice from a professional.
- Recover outstanding debt.
- Reduce or rearrange expenses.
- Sell assets.
- Offer markdowns or increase prices.
- Consolidate debt.
- Use new marketing techniques.
- Offer additional payment options.
Employees who are healthier have less sick days (decreased absenteeism) and are more productive than their 'less healthy' counterparts. Wellness programs also help to build team comradery and a “culture of wellness,” which in turn, leads to happier, healthier, more productive employees.
The Goals of an Employee Well-Being Program
These benefits can be quantified by summing the dollars saved by the wellness program divided by the dollars spent on the wellness program. This is the classic wellness ROI analysis, sometimes known as a benefit-to-cost ratio.
A well-executed program can reduce health care costs, augment productivity and increase employee retention, providing further support for the correlation between personal health and job satisfaction. See What is a wellness program? and Quiz: How Well Do You Understand Corporate Wellness Programs?What is the downside of employee wellness programs? ›
Corporate wellness programs have the potential to provide numerous benefits to both employees and employers, such as improved health outcomes, increased productivity, and reduced healthcare costs. However, there are also potential drawbacks to consider, such as low participation rates and cost.What is financial wellness and provide 2 examples of what it might look like? ›
Financial wellness is a state of financial well-being in which you can manage your bills and expenses, pay your debts, weather unexpected financial emergencies and plan for long-term financial goals such as building college funds and saving for retirement.Are employee wellness programs tax deductible? ›
Insurance. Some health insurance companies offer employee wellness programs for an additional premium. Workers can elect to include the wellness program in their coverage. If you pay your employee's premiums or part of the premiums you can write off this expense on your company's taxes.How much do companies spend on employee wellness programs? ›
These programs typically cost between $3 and $7.5 per employee per month ($36 -$90/ year). This typically includes a mobile app and website that can offer a health risk appraisal, incentive management, online resources, culture change, wellness campaigns and team challenges, and integration of fitness devices.Do wellness programs retain employees? ›
Health and wellness have a significant impact on employee retention in the workplace. Wellness programs increase employee retention by targeting their physical, emotional, mental, financial, and social wellbeing.What are the 5 elements of wellbeing? ›
In a comprehensive Gallup study of people in more than 150 countries, researchers identified five universal, interconnected elements that shape our lives: physical wellbeing, financial wellbeing, career wellbeing, social wellbeing and community wellbeing.How can employee wellness programs be improved? ›
Allow them to participate in wellness activities as part of, rather than in addition to, their normal job responsibilities. For example, allow creative staff members to use work time to create signs publicizing a wellness event. Create best practice policies and programs at work that emphasize health and safety.What increases employee wellbeing? ›
Offering opportunities for employees to develop open, supportive relationships with their colleagues can be an important strategy for increasing employee wellbeing. Studies have shown that such relationships at work are associated with lower psychological distress, an indicator of poor mental health.
- Ask Your Employees About Their Needs and Interests. ...
- Improve Employees' Financial Literacy. ...
- Provide Access To Educational Resources. ...
- Get Your Team Engaged Early. ...
- Offer Benefits that Empower Financial Wellness. ...
- Work on Reducing Stress in the Workplace.
Wellness comprises of eight mutually co-dependence dimensions: emotional, physical, occupational, social, spiritual, intellectual, environmental, and financial.What is the purpose of having a payroll system? ›
Payroll systems manage everything having to do with the process of paying employees and filing employment taxes. They are put in place to keep track of worked hours, calculating wages, withholding taxes and other deductions, printing and delivering checks, and paying government employment taxes.What are the benefits of Quickbooks payroll? ›
- Track Income & Expenses.
- Invoice & Accept Payments.
- Maximize Tax Deductions.
- Track Miles.
- Run Reports.
- Send Estimates.
- Track Sales & Sales Tax.
HRIS is important because it connects people and workflows in ways that may support daily operations and improve productivity. It also aids in the collection and management of data necessary for regulatory compliance.What can be one of the advantages of using a computerized payroll system Be__________? ›
Calculations That Are Simple To Perform
Time and human error can be eliminated with an electronic payroll solution. Payroll software uses your timekeeping data to calculate your crew's time and pay automatically. No matter how you choose to pay, a digital system can convert the value of your time into dollars.
- Pay periods and paydays. ...
- Collecting employee and employer taxes. ...
- Paying and filing taxes. ...
- Federal, state, and local laws. ...
Payroll activities involve three functions: hiring employees, preparing the payroll, and paying the payroll.What are the advantages of payroll data? ›
Payroll data helps business leaders to assess the full costs and organizational impacts of both large and small decisions. In the simplest illustration of this, considering payroll performance over time can provide more accurate yearly forecasts, which then helps to manage budgets and cash flow.What is the main benefit of linking your payroll to accounting? ›
If you subscribe to both Accounting and Payroll, save time when you pay employees and send salary details directly to Accounting.
Features like automatic payroll, same-day direct deposit, and mobile time tracking with QuickBooks Time help you pay your team and file taxes with ease. ** Users can get QuickBooks Online Payroll on its own or with QuickBooks Online accounting software. Both work to ensure your books are always up to date.What are the 5 benefits of HRIS? ›
- It keeps everything organized. ...
- It frees up HR professionals to handle more important tasks. ...
- It ensures regulatory compliance. ...
- It helps HR staff work efficiently. ...
- It makes the company look good to employees. ...
- Employee database. ...
- Applicant tracking and onboarding.
HRIS is the way forward to manage a hybrid workforce
From assisting HR to managing organizational processes and employees with self-service tools, HRIS can help improve employees' engagement, productivity, and performance.
- Increased Productivity. ...
- Streamlined Employee Onboarding & Data Management. ...
- One-Stop Spot for Scheduling & Payroll. ...
- Easier Compliance. ...
- Become Data-driven. ...
- Easier Onboarding. ...
- Increased Empowerment. ...
- Increased Employee Engagement.
Cost savings – computerized accounting programs reduce staff time doing accounts and reduce audit expenses as records are neat, up-to-date and accurate. Reduce frustration – management can be on top of their accounts and thus reduce stress levels associated with what is not known.What are three advantages of a computerized system? ›
- High Speed. One of the reasons for the improvement in the quality of life is the personal computer's speed. ...
- Accuracy. Humans make errors. ...
- Automation. ...
- Storage. ...
- Ease of Access. ...
- Multitasking. ...
- Better understanding of data. ...
- Reduced Cost for Online Ventures.
For employees, advantages to payroll cards include the ability to pay bills online, shop online, make automatic bill payments, and get cash at an ATM. Disadvantages include the possibility of monthly maintenance fees, out-of-network ATM fees, and balance inquiry fees.