FinFit is a comprehensive Financial Wellness Program that empowers employees with financial assessment tools, resources, guidance, and education to implement and maintain financial fitness and peace of mind. FinFit assists hundreds of companies and employees with providing affordable credit options and sound financial guidance.
We are proud to announce that JK Moving Services’ very own Human Resources Vice President, Andrea Bunch, received the 2014 FinFit Hero Award. The Hero Award demonstrates an employer’s commitment to the financial wellness and education of its employees. Congratulations, Andrea!
I recently sat down with JK’s Human Resources Benefits Administrator, Scott O’Con, to discuss JK’s partnership with FinFit and why an employee may choose to take advantage of their services:
What service does FinFit provide JK Moving Services’ employees?
FinFit delivers services that companies use to provide their employees with options when it comes to modeling loans, creating household budgets, consolidating spend, or applying for small loans, among other things. Many times, an employee may need an advance on their paycheck and getting a low cost loan from FinFit is not only an easy process, it reduces the need for that employee to borrow money from their 401(k) or become subject to lengthy credit checks.
The FinFit website offers great financial calculators that employees can use for budgeting monthly and yearly expenses.
What options does JK provide employees who need a loan or advance on their paycheck?
Well, first we would ask specific questions and give them three options:
- Do you have vacation days you can cash out?
- Have you contributed to your 401(k)? The employees can only take out money from their 401(k) that they themselves have invested; not what the company has contributed. An employee must have at least $2,000 of their own deferrals in their 401(k) before being permitted to access funds through a loan.
If an employee elects to take the loan out of their 401(k), they will have to pay $125 non-refundable processing fee. The benefit of this option is that you would be paying yourself the interest; the downfall is that you can’t continue to grow and make money from the amount you withdraw.
If you haven’t put any money in your 401(k), this obviously wouldn’t be an option for you.
- FinFit is the third option. The loan must be a minimum of $500. The employee’s earnings determine how much you will be allotted in total. There are no formal background checks, and the short-term loans are paid back to FinFit at 9% interest. JK does not hand out the loan or collect its payments.
I would only recommend taking money out of an employee’s 401(k) as a last resort option.
JK Moving Services is always looking for passionate employees. We strive to attract and train the best employees, and provide them with ongoing career development, benefits, and a path for advancement. If you are interested in a career with JK or have questions about our employment benefits, check out our careers page.