Many individuals when they take on a new job, or have stayed on board with the same employer for a long time have a tendency to leave the details of their paycheck to the accounting or human resource department of their employer.  Relinquishing that power is definitely not a good idea! It is up to you to be in charge of the money you earn to insure that every penny is working for you.

Examine Your Tax Withholding Closely

Employers are required by law to withhold a portion of each employee's income and pay it directly to local governmental departments, as well as other Federal governmental agencies like the United States Internal Revenue Service.

This withholding acts as a prepayment of taxes the employee owes when it is time to file, as well as a direct payment of certain other governmental services like Social Security.

The amount of each employee's income tax withholding depends on their marital status, supporting dependants, etc. It is up to each individual to make sure the correct amount is taken from each paycheck.

If too much is paid in, the employee will receive a refund from the government. Not enough and the individual will have to pay more taxes—having it as close as possible is the ideal circumstances since if you owe and can't pay in full at the time of filing, the Federal government charges you interest on that money.

Inspect Your Insurance

Check with an insurance agent that you know and trust to make sure the coverage offered though the company where you work is cost-effective. In some instances, it may be less expensive to get health coverage on your own through an insurance company outside of your employer. The only way to know is to do your research and check to make certain.

Health Savings Accounts (HSA)

Health Savings Accounts (HSA) are employer sponsored health savings accounts where money is taken from a person's salary before taxes and deposited into an account for individuals that are enrolled in High Deductible Health Plans (HDHPs). It is designed to make health care affordable for individuals with these high deductibles.

Employees are usually given checks or debit cards to use to pay for doctor visits, lab tests, prescriptions, etc. The money may also be used for eye care and over-the-counter medications.

Unlike other plans, if funds are not used, employees have the option of rolling them over year-after-year since they are owned by each individual employee.

One advantage in funds of this type is at retirement, these accounts are treated like an Individual Retirement Account (IRA).

Health Reimbursement Accounts or Health Reimbursement Arrangements (HRAs)

Health Reimbursement Accounts consist of funds that are entirely provided and set aside by employers to reimburse employees 'tax free' for qualified medical expenses. There is no limit to an employers' contribution and according the the IRS, employees are not allowed to contribute from their earnings (voluntarily or otherwise), in any shape or form to this account.

These expenses include copays, coinsurance, deductibles and services agreed to by the employer that are not covered by the company's selected standard insurance plan.

Unlike Health Savings Accounts, the employer decides how much if any of the funds are rolled from year-to-year. This type of account does not follow an employee to new employment or retirement.

Employer Sponsored 401(k)

A 401(k) plan allows an employee the opportunity to save for retirement and have the savings invested while deferring income taxes on the earnings until the time of withdrawal.

Supplementing a retirement fund is more important that ever these days since people are living longer than ever before and are faced with many challenges and uncertainties like Social Security, inflation, etc.

Many companies' 401(k) plans also offer employees the option to purchase stock in the company at a discount.

Studies suggest that many people are not contributing to an employer-sponsored 401(k) which is like throwing money away free money if your employer matches any of the amount you are able to contribute into that account.

Retirement Savings Plan

More and more companies are shifting the responsibility of retirement planning from the company to the individual.  If you are one of the fortunate employees where your employer contributes in some form to a retirement plan, take advantage of it. It is up to you to take charge of your retirement planning.

Flex Plans

Flexible Spending Account (FSA) or flexible spending arrangements is one way a company may offer their employees tax-advantaged financial benefit for medical or dependent care expenses.

Company Stock Plans

Companies may offer their employees options to purchase stock on a certain date usually at a discounted price called Employee Stock Purchase Plan (ESPP).

Your Money Can Work for You

Companies offer these incentives as an attraction to keep their employees and if you qualify for any of these benefits and do not take advantage of it, it is like throwing away free money.

Taking advantage of company sponsored programs is one of the best and easiest ways to save money, earn money, get tax breaks and begin building a retirement fund for your future.