An average employer pays 30-40% of their employees’ wages as benefits. Your benefits, such as retirement income, compensation, and benefits, are the result of several factors. Generally speaking, you will get better benefits and broader coverage under the employer-sponsored benefit plan compared to individual plans.
Managing employee expenses and tax benefits is a very complicated, tedious, and time-consuming process for any organization.
One of the biggest costs of the organization which constitutes 70% of total business cost is the employee expenses that include employee wages, benefits, payroll, and other related taxes.
The organizations are thinking to re-evaluate their employee expenses and tax-benefits workflow in 2021 keeping in mind the present new normal scenario.
In this blog let us see in detail, how can we manage employee expenses and tax benefits in a better way?
The answer is explained in an easy 4 steps process that organizations can adopt to manage and control employee expenses.
- Create an annual employee expenses plan
Anything which we fail to plan in the beginning can become the reason for our failure in the end.
So don’t fail to plan your annual employee expenses structure in the initial stage. This will give you an idea of the total expected cost and strategies to control and cut down the unnecessary expenses involved in them.
Plan a well-written employee expense policy for the organization. The policy should include the basic plan of the following things mentioned below :
- How much the employees are allowed to spend?
- What should the employee spend on?
- What are the benefits offered to each employee?
- How much of the company budget should be used for the employee expenses and benefits?
After a clear planning of all the above-mentioned questions, discuss them with the finance team and come up with the best expense and benefits policy for your employees.
- Automate and Digitize the Expense Management
It is time to move beyond the cumbersome, labour-intensive, and time-consuming process of manual expense management. The manual spend management is now redundant and organizations need to move ahead with the technology. End-to-end spend automation is the key to the upgradation. Almost all the companies follow standard practices for years, which have been working well for managing these expenses. However, there is a huge amount of money that could be saved upon with the help of the automation process of the Business Expense.
So, integrate an automated and digitized expense management platform that works best for your organization.
Zaggle SAVE – Expense management solution which provides businesses the easiest and smartest platform to manage all their business expenses and employee tax benefits in one place through VISA-powered Zinger Cards.
It is a SaaS-based platform that enables employees to move from paper-heavy to paperless and cashless transactions, while at the same time allowing businesses to track employee spends and sync all the data to their accounting systems with ease.
To know more, click here: (CTA)
- Set a budget for each expense category
The expenses and benefits policy defines all the categories of expenses and how much of the budget is fixed for each category. This includes setting the budget for each category of spending in advance like business trips, hotel stays restaurant bills, purchases of equipment and supplies, and other expenses.
- Track the expense report frauds
Nearly 13% of employees submit false reports and the manual processing of reports can cause duplication errors.
Tracking expense report frauds using an automated tool or platform can help in reducing the number of frauds.
Zaggle Save offers the most innovative and advanced anti-fraud detection system as explained below.
Anti-Fraud Detection System
Sometimes you might upload the same receipt two or more times and as a result, duplicate expenses are created. If you have a long list of expenses, it is next to impossible to find out the duplicates.
But now, with the help of Duplicate Detection, you can find and weed out all these possible duplicates in ZaggleSave, with ease. The detection process is done based on OCR (Optical Character Recognition) and ML (Machine Learning) technology. It takes in account the information like the date/time, Merchant Name Amount, and Currency.
How can employees save more on tax benefits?
The organizations can help employees to save more on tax benefits using various components of their salary structure.
The various components of salary that can help to reduce the tax burden on the employees are:
- Employee’s Provident Funds
- Meal Allowance
- Travel Allowance
- Rent Allowance
- Maintenance Allowance
- Food Vouchers
- Gift Vouchers
Employees can save more on taxes using Zaggle Save and with our Multi-wallet Zinger card.
The Zinger Card is a Multi Wallet Card for meeting employee reimbursements across tax exemption and expense categories like Meal, Reward, Fuel, Telecom/Broadband, Travel, and Expense.
