Why A 401(k) Match Should Be Part of Your Employee Retirement Plan

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Why A 401(k) Match Should Be Part of Your
Employee Retirement Plan
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• Employee retirement plans are still proving a
  popular incentive for many employees. For
  employers, there are a number of advantages to be
  had from offering a 401(k) employer match as part
  of an employee retirement plan, and three of the
  most important are listed below
• You can attract and retain the top talent
• Research has shown that companies who offer such
  a benefit as a 401(k) employer match, tend to
  have a much higher chance of hiring better
  candidates, and because not all companies offer
  this, you can help yours truly stand out.

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• Employee morale, retention and even production,
  can get a boost
• In much the same way as offering a 401(k)
  employer match helps companies recruit a higher
  standard of employee, it can also help them to
  retain them by making them feel happier about
  their job, and what does a happy worker make? A
  harder worker!
• Benefit from employer tax benefits
• Tax laws enable employers offering 401(k)
  employer matching, to claim those matching
  contributions as tax deductions.

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• How does 401(k) employer matching work?
• Provided your contribution limits and withdrawal
  regulations are in compliance with the standards
  of the Employee Retirement Income Security Act,
  you may set your 401(k) contribution rates as you
  wish, and for more detailed guidance on rates,
  reach out to a payroll services provider, local
  or remote.
• While determining how much money to contribute to
  your employees retirement accounts, you should
  consider both of the following methods

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• A percentage of an employees wage you may
  choose to match all employee contributions up to
  a certain limit thats equal to a percentage of
  an employees wages. If your contribution limit
  is set at 4, for example, and the employee earns
  50,000 every year, as their employer, you will
  need to contribute around 2,000 (0.04 x 450,000)
  over the duration of the plan.
• A percentage of an employees contributions
  some employers may choose to match a certain
  percentage of contributions instead, and if
  choosing to match 40 of your employees
  contributions with the same 4 contribution
  limit, then as an employer of an employee with a
  50,000 annual salary, your contribution limit
  will be 800 (0.4 x 2,000).

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• Determining how your 401(k) matching process will
  work most effectively, isnt always easy to
  achieve without a little professional input and
  guidance, and most employers (and employees) get
  a better deal when seeking help from a payroll
  services provider.
• Making it work for you and your employees
  involves figuring out your employer match
  contribution limits, making yourself familiar
  with the IRS-mandated 401(k) contribution limits
  and determining a vesting schedule that helps to
  increase employee retention, without causing
  financial harm to your business. Sound like a lot
  of work? It is! Get a third party involved and be
  guaranteed to get the best deal going, while
  satisfying both parties, and your legal
  requirements.

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• Apollo Payroll is one of the premier small
  business payroll companies in Miami Beach and
  Coral Gables. Apollo Payroll is dedicated to
  delivering expert advice, responsive service, and
  highly accurate payroll processing and reporting
  to ensure the success and growth of the business
  that we serve. Our services include comprehensive
  payroll service in Miami and other cities in
  Miami-Dade County, employee background check and
  group health insurance in Coral Gables Miami.