Benefits Optimization Review
The Benefits Optimization Review evaluates whether your current payroll and benefits structure presents an opportunity to reduce employer payroll-related costs through tax-favored benefit strategies.
We quantify the financial opportunity before asking leadership to evaluate a solution.
Tax-Favored Benefits Optimization
The Reason to Look
Healthcare and employee benefits represent a significant operating expense for many employers. But the cost of the program is not limited to premiums and claims.
The interaction between payroll, employee demographics, benefit elections and applicable tax treatment may create additional opportunities to improve the economics of the benefits program.
The BOR evaluates that opportunity before recommending a solution.
What is the opportunity worth?
Rather than beginning with a product presentation, the analysis begins with the employer’s own data and develops a preliminary estimate of the potential financial impact.
Financial Impact Statement
The BOR develops a preliminary Financial Impact Statement designed to help leadership determine whether the opportunity is financially significant enough to warrant further evaluation.
Preliminary Financial Impact
The purpose of the Financial Impact Statement is not to recommend implementation. It is to determine whether a sufficiently meaningful financial opportunity exists to justify further analysis.
The Benefits Optimization Review and Financial Impact Statement are provided for preliminary analytical and illustrative purposes. Estimates are based on information supplied by the employer and assumptions applicable at the time of analysis. Actual eligibility, tax treatment, compliance requirements, program structure and realized financial results require additional review. Nothing presented constitutes tax, legal or accounting advice. Employers should consult their appropriate tax, legal and accounting advisors before implementation.
Decision Gate
Not every optimization opportunity deserves implementation.
If the preliminary analysis does not demonstrate meaningful value, the process can stop there.
If the Financial Impact Statement identifies a material opportunity, leadership now has a financially grounded reason to move to the next stage of evaluation.
The role here is to diagnose an opportunity, not to advance a predetermined solution.
No → Stop
Yes → Validate with Subject-Matter Team
The Process
Evaluate employer payroll and benefit information to identify whether a potential tax-favored benefits optimization opportunity exists.
Translate the preliminary opportunity into an executive-level Financial Impact Statement.
If the financial impact is material, engage specialized subject-matter expertise to validate eligibility, assumptions, tax treatment, compliance considerations and program structure.
Only after the strategy and economics have been validated does leadership determine whether moving from diagnosis to implementation makes sense.
Analysis first. Solution second.
Next Step
When the BOR identifies a meaningful financial opportunity, the next logical step is a working session with the specialized team that would support the strategy.
Tax-Favored Benefits Subject-Matter Team
Brian's role
Identify and quantify the opportunity.
Subject-matter team's role
Validate and explain the strategy.
Employer leadership's role
Determine whether the economics and strategy warrant execution.
The purpose of that conversation is to:
Tax-favored benefits optimization is one analytical module within the broader Benefits Optimization Report methodology.
Next Step
The Benefits Optimization Review provides leadership with a data-led way to determine whether tax-favored benefits optimization represents a meaningful financial opportunity for the organization.
Learn whether a Benefits Optimization Report makes sense for your organization. No cost. No obligation.
Analyses, projections, benchmarks and modeled scenarios are intended to support benefits strategy and decision-making and may rely on assumptions, available data and third-party information. Actual results may vary. The Benefits Optimization Report™ does not constitute legal, tax or medical advice.