When most employers build their annual benefits budget, they focus on one thing: health insurance premiums. But if you’re only budgeting for premiums, you’re overlooking key areas that impact compliance, employee satisfaction, and overall plan effectiveness.
A comprehensive benefits budget goes beyond cost — it’s a roadmap for how you’ll attract, retain, and support your team. At Cypress Benefit Solutions, we help employers think strategically about their total investment in people. Here’s what to consider in your next budget cycle.
1. HSA & FSA Contributions
If you offer a high-deductible health plan (HDHP), consider whether you’ll contribute to employee Health Savings Accounts (HSAs). Even modest contributions can increase plan adoption and employee satisfaction.
Flexible Spending Accounts (FSAs) are another powerful tool — but make sure to include any employer seeding or administrative fees in your budget.
2. Benefits Administration Technology
Are you still relying on spreadsheets, PDFs, and manual forms?
A self-service benefits platform helps you:
- Save time during open enrollment
- Reduce errors
- Improve employee engagement
Budgeting a few dollars per employee per month (PEPM) for a modern platform can make a major difference — and simplify life for your HR team.
3. Employee Education & Communication
If employees don’t understand their benefits, they won’t value them.
Budget for:
- One-pagers and decision support tools
- Custom explainer videos or walkthroughs
- Live Q&A sessions during enrollment
- A branded benefits website (we build these in-house!)
Clear communication leads to better participation — and fewer HR headaches.
4. Compliance & Reporting
Staying compliant with ACA, COBRA, and ERISA requirements requires more than good intentions.
Ensure your budget includes:
- 1095/1094 reporting support
- COBRA administration
- ERISA wrap documents and annual notices
If you’re working with outside vendors, those fees should be reflected in your budget. (We offer integrated support to keep things simple.)
5. Voluntary & Supplemental Benefits
Voluntary benefits like accident, critical illness, identity theft protection, and legal services can strengthen your offering — often without increasing your cost (they’re employee-paid).
You may still want to budget for:
- Enrollment fees
- Communication materials
- Admin setup costs
Even a small investment can dramatically increase perceived value.
A benefits budget is more than a spreadsheet — it’s a reflection of how your company supports its people. The more thoughtful and complete it is, the more value you’ll get from every dollar spent.
Not sure what’s missing from your budget? We’d be happy to walk through it with you — and help make your next renewal season your smoothest yet.
