Offering a 401(k) plan is a smart business move, as you'll learn in this small business video minute. It will help you and your employees save for retirement, and it will ensure you attract the top talent.
You can choose to match employees' contributions, and even tie your employee match rate to company goals as an incentive program. Plus, a 401(k) plan is less expensive than a defined-benefits plan in the long run.
Welcome to the SurePayroll minute. I’m Michael Alter.
Offering a 401(k) plan to employees is no longer viewed as a benefit, it’s an expectation. In today’s competitive employment market, prospective employees are more likely to ask what your 401(k) contribution match rate is than if you offer a plan at all.
So if you want to recruit and retain the best employees, offering a 401(k) plan is a must.
Aside from helping to attract talent, offering a 401(k) plan helps your business at tax time. Any funds you use to match employee contributions or pay administrative costs of the plan are tax deductible.
In terms of pure dollars and cents, offering a 401(k) plan is less expensive in the long run than having a defined-benefits plan, also known as a pension plan, which guarantees employees a fixed amount of money each month during retirement.
You can also use your 401(k) plan to achieve company goals. Consider giving your employees the incentive of a higher contribution match rate if the company achieves its sales goals or other objectives.That’s a win-win for everyone.
For the simple answer to small business issues, I’m Michael Alter with your SurePayroll Minute.
