There was a time when 401(k) plans were a luxury that only big companies could afford to offer. But smaller entrepreneurs—and their employees—need to invest for the future, too. The playing field has been leveled, and retirement plans are now accessible to businesses of all sizes. The options are customizable and attractive—not to mention affordable.
Whether you’re a startup with seven employees or a mid-size company with 100 or more, there’s a plan that fits. Here are some reasons why you should consider offering a 401(k):
#1 Retain and Recruit Best Employees
Great employees—and happy ones—can drive the success of your business. If you’re looking to retain the best and brightest, your benefits should be inclusive and attractive. Offering a 401(k) plan to your employees can give you the edge you need to build a great team.
A full suite of benefits attracts the most qualified employees. And when you’re competing against bigger corporations, the best package can help land the best talent. A top-notch candidate deciding between two positions is highly likely to choose the company that offers a 401(k) plan. Nearly 40 percent of employees said they would leave their current job for one that offers a 401(k) plan according to PLANADVISER magazine. This type of employee perk may also reduce employee turnover, resulting in less time and money spent on recruiting and training.
#2 Tax Savings
There are many tax incentives for business owners who offer a 401(k) plan. There are tax credits for start-up costs to the tune of $500 each year for the first three years you offer the plan, according to the U.S. Department of Labor. That equates to a 50 percent discount to get a plan established. Also, if your company offers to match what your employee contributes to the 401(k) plan, those matching contributions are tax-deductible (limits do apply). It’s been noted that some employees tend to be more concerned about their salary, so you can make them happy by helping them save for retirement, while also saving money on your next tax return.
#3 Plan for Your Own Retirement
Owning a small business doesn’t mean you have to forgo the benefits of a 401(k) plan. You can also benefit from providing a retirement option for your employees. According to the IRS, you can contribute up to $18,000 of your compensation for 2015, and an additional $6,000 if you are 50 or older. When you add in the benefits of profit sharing and employee deferral, that figure could more than double.
#4 It’s Not as Complicated as You Think
The ability to easily integrate your 401(k) system is key. You’ll want to consider this when choosing a provider, and Heartland Payroll gives you that flexibility. From the foundational elements of an efficient payroll to tailored offerings and HR capabilities, all elements are designed for easy implementation.
Heartland Makes It Simple
Heartland takes the complexity out of payroll and HR. Our trusted 401(k) partners do the same for retirement plans. Together, we seamlessly integrate your payroll and 401(k) with best-in-class service.
Managing your 401(k) plan through your payroll is easy with Heartland. We can seamlessly integrate a third-party 401(k) provider with our payroll platform. We’ve done the homework, and have an extensive list of retirement plan providers we currently work with to facilitate and administer your 401(k) plan.
To learn more about Heartland Payroll services and 401(k) integration, contact a representative today or visit our website.