Now that you are joining the full-time workforce, then you need to think about your benefits. It can be difficult to choose the best ones for you from optional ones. Others like Social Security are mandatory. Use these four ideas to set up a benefits package that is right for you depending on what your company offers.
Pay Into Social Security
You will notice that on every paycheck you have a deduction for Social Security. This money that is held in a separate fund will help take care of you when you retire. You can also qualify for Social Security Disability if you are hurt and can no longer work. Working with a lawyer, like those at Horn & Kelly Attorney at Law, can help this happen. You pay approximately 6.2 percent of your paycheck into the system, and your employer pays the same amount.
Get a 401K
Just like Social Security, a 401K is money you are setting aside for when you retire. This money held in a private account is compounded regularly helping it to add up faster. You may get tax breaks for the money you put into your account. Usually, the money is managed by a professional firm helping it to grow quicker most times. Depending on the company, your employer may match the money you put into a 401K.
One of the most variable parts of your benefits package is insurance. Some companies offer employees fully paid life and health insurance. Others help the employee pay for part of their insurance. Some also offer long and short-term disability insurance designed to help cover expenses if the employee gets hurt. With so many variables, read the fine print carefully.
Ponder Paid Time off
Usually, companies offer employees some paid time off. Some of it may be in days of vacation while others are in sick days. Use your time wisely so that you do not run out at the end of the year. It is important to know if your unused days will expire or carry over to the next year. If they will carry over, then think about saving some in case an unfortunate event occurs. Additionally, if you ever get ready to leave this company, then know if you get paid for unused days.
Congratulations on starting your new job with a benefits package. It is a big step. Use this guide to help you decide what benefits are right for you now and in the future.