The cost of employee benefits is a significant dollar amount for employers. Yet many employees don't utilize their benefits package to their full advantage. So how can you maximize your employee benefits? 401(k) plans, flexible spending accounts and health insurance are 3 benefits that most employers offer. Here's how to get the most out of them.

401(k)
I know people struggle with putting money away for retirement. Employees often say they can't afford to get a smaller paycheck by putting a higher percentage into their 401(k). What they don't realize is the tax advantage they are missing out on. For example, if you contribute $10,000 and you make $50,000 a year, you only pay tax on $40,000, not $50,000. So the tax savings is giving you back some money to make up for that $10,000 contribution (how much depends on what tax bracket you are in). Having a portion of your salary withheld from each paycheck and deposited into a tax-deferred retirement savings account is generally a good idea even without an employer match. But if your company matches the money you save, it's like free money. Even if you invest a small amount now, it can become a substantial asset with the passage of 30 or 40 years.

Flexible Spending Accounts
Under a flexible spending account, you direct your employer to withhold extra money every pay period on a pre-tax basis. That money is then available to you to pay for medical bills that are not reimbursed by insurance or day care costs you incur while you work. Since the money deducted from your paycheck comes out before you pay taxes, you will save the amount of money your taxes would have cost you. And as long as you use the money on qualifying expenses, you never have to pay taxes on it. One heads up: this is a "use it or lose it" account. Be sure to estimate carefully the amount you set aside in your FSA. You want to deposit as much money as possible to get the biggest tax break, but you want to be sure you don't deposit extra so you won't lose any money.

Health Insurance
It's important to learn how your group insurance plan works. Do you have an HMO, PPO, POS? Take the time to learn about your plan and how you can get the biggest benefits. For example, if you have a PPO plan, it works like this: The insurance company or the plan administrator will approach doctors and hospitals to be in their PPO directory. The providing doctors agree to provide services for a reduced fee. And doctors are willing to take that discount because they expect they will increase their patient traffic. It's not like an HMO where you have a gatekeeper who directs all your services. You can go to any PPO doctor at any time. PPO plans are designed to provide better benefits for those who use the PPO doctors. You may have 80% coverage, for example, as long as you visit a PPO doctor, whereas you may only have 60% coverage using a non-PPO provider. And remember, with the PPO doctor you are paying 20% of the discounted price. With a non-PPO doctor you are paying 40% of the full retail price. It's a huge difference. Go out of your way to use PPO doctors whenever possible. Remember, it is your responsibility to confirm with the doctor that they still have a PPO contract with your doctor. Do this and you won't be surprised by a big bill.