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75% of employees enroll in health benefits when they’re offered. But what about the other 25%, or those missing out on pre-tax savings in HSAs, FSAs, or commuter benefits?
The truth is, your benefits are only as valuable as your employees’ ability to use them. Higher participation helps employees save on taxes, but it also reduces an employer’s benefit costs through better risk pooling, lower premiums, and more efficient use of employer contributions.
Still, many employees don’t take full advantage of what’s available, often because they don’t understand it. This guide breaks down the importance of increasing benefits adoption and gives actionable strategies to educate employees on pre-tax benefits.
Maximize participation in your pre-tax benefits program by using the following strategies to keep your employees informed about your latest offering:
Your employees are busy, and they won’t all view your benefits communications in the exact same place. Try using multiple communication channels to meet your workers where they’re already spending their day. You might use a combination of the following to spread the word effectively:
While it’s important to use multiple communication channels to reach employees, personalization is key to making benefits feel relevant and valuable. Employees have different financial situations, health needs, and life priorities, so a one-size-fits-all approach won’t maximize engagement.
Personalize your benefits communications by:
Providing concrete, real-world examples helps employees understand how pre-tax benefits impact their pay. Use easy-to-follow breakdowns to show the savings at different salary levels.
For example, you might illustrate how an employee earning $50,000 vs. $100,000 would benefit from participating in a Health Savings Account (HSA), which might look like this:
Some key details to include are:
Many employees learn best through interactive discussions rather than reading emails or policy documents. Virtual or in-person workshops provide a valuable opportunity for employees to engage with benefit options, ask questions, and fully understand how pre-tax benefits can work for them.
To make your employee education workshops effective, keep them engaging, interactive, and accessible for all employees. Some ideas include:
Not all employees feel comfortable asking questions about their personal benefits package in a public setting. Employers can overcome this roadblock by providing an anonymous Q&A option. For example, they might use online forms or suggestion boxes to give employees the information they need without any awkwardness.
Benepass tip: If questions aren’t coming in thick and fast, create a list of common FAQs and answer them to proactively kickstart some discussion and engagement.
Your new employees have a lot to take in during their first few weeks, but that’s no excuse for sidelining information about their total compensation package. Introduce pre-tax benefits early and often so employees understand their options from day one. You might:
There’s no such thing as a set-it-and-forget-it approach to pre-tax benefits. The IRS tends to change contribution limits and other key regulations each year, so it’s essential that employers regularly update their employees about their benefits. Keep benefits top of mind by:
Employee benefits can feel like an entirely new language if you’re not used to the terminology. Here’s some key pre-tax benefits vocab you can offer your employees to help them understand your resources and the overall benefits landscape:
A tax-advantaged benefit reduces taxable income, offers tax-free growth, or allows tax-free withdrawals. Examples include 401(k)s, HSAs, and FSAs, helping employees save money now or in the future.
A traditional IRA allows individuals to contribute pre-tax income (up to $7,000 in 2025, or $8,000 if you’re aged 50+), reducing their taxable income. Taxes are paid later when withdrawing funds in retirement, often at a lower tax rate.
A Roth IRA is funded with after-tax dollars, meaning contributions don’t lower taxable income now, but all withdrawals, including investment growth, are 100% tax-free in retirement—a major advantage for future financial planning. Contribution limits are the same as traditional IRAs.
An FSA allows employees to set aside pre-tax earnings (up to $3,300 in 2025, with the option for a spouse to contribute the same) for healthcare, dental, vision, or dependent care expenses. Funds typically expire annually unless the employer offers a rollover or grace period.
An HRA is an employer-funded account that reimburses employees for qualified medical expenses. Employees cannot contribute their own money, but employer-funded reimbursements are tax-free. There are different types of HRAs, each offering unique flexibility:
An HSA is a pre-tax savings account for employees with a high-deductible health plan (HDHP). In 2025, contribution limits are $4,300 for individuals, $8,550 for families, plus an extra $1,000 for those 55+. Typically, funds roll over annually and grow tax-free.
Health savings accounts are often confused with two other ways to fund employee healthcare. Here’s how HSAs differ from HRAs and FSAs.
Tax-advantaged benefits help employees save, but they also offer real financial advantages for employers. When employees contribute pre-tax dollars to 401(k)s, HSAs, FSAs, or commuter benefits, it lowers their taxable income, reducing the amount of Social Security, Medicare, and other payroll taxes that employers are required to pay.
For employees, these benefits mean more money in their pockets — lower taxable income, higher take-home pay, and savings on essential expenses like healthcare and retirement.
At Benepass, we empower businesses and their people to maximize the value of every dollar they spend on benefits. Our pre-tax benefits offering includes:
We also offer a wide range of post-tax benefits, including lifestyle spending accounts, stipends, and more.
Book a free Benepass demo to see our platform in action, or feel free to reach out to us at sales@getbenepass.com to build a satisfied workforce, knowledgeable about their benefits.
