Posts about Employee Benefits Plans

If you’re a small business, offering a SIMPLE IRA plan as a retirement benefit can be a great way to attract and retain employees. For you, the employer, it is low-cost and easy to set up and administer. As an added benefit, matching is a tax-deductible business expense. For employees, a SIMPLE IRA allows them to save more than with a personal IRA and enjoy the benefits of a matching plan.

But if your business is growing, it may be time to consider switching from a SIMPLE IRA plan to a 401(k) plan. Here are some indicators to help assess if it is time to change plans:

Deciding on the right retirement plan to offer your employees can be a challenge; there are countless factors that go into determining which type of plan is right for your business and its employees, including the size of the contribution you're able to make and how these contributions may affect your taxes. One retirement plan option to consider that often goes overlooked is that of the cash balance plan, which allows employees to accelerate their savings while maximizing tax deductions for the company.

Your current 401(k) plan may be the result of simply taking the path of least resistance.

Perhaps the plan sponsors wanted to simplify the process and costs, and chose a plan based on convenience. Taking shortcuts might have seemed easier at the time, but it usually means you’ll need to switch 401(k) providers later to find the plan that actually works for your company.

When your employees are worried about health and financial issues, it has serious consequences for your business. If your employees can’t focus and suffer from stress and related problems, the result is a disengaged workforce and lost productivity.

An effective employee benefits plan plays a critical role in keeping your team engaged and focused on achieving work goals, and helps them see their work life as beneficial to their personal needs, instead of a detriment.

If your company is seeing a rise in sick days and requests for more time off, it’s time to rethink your employee benefits plan.