Should Your Small Business Be Offering A 401(k) Plan?

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Should Your Small Business Be Offering A 401(k)
Plan?
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• A significant step for any small business owner,
  are you clear on whether you should offer your
  employees a 401(k) plan, or do you need a little
  extra help with the decision?
• For those small business owners currently
  pondering over the pros and cons of offering a
  retirement plan to their workforce, the following
  short guide may help you
• What exactly is a 401(K) plan?
• An employer-provided benefit that gives employees
  the opportunity to save funds for their
  retirement, a 401(k) plan provides financial
  benefits to all company members, including the
  owner, and is highly desirable for employees.

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• Employees get to keep their contributions whether
  they leave the employ of the company or not, but
  employer matches are usually vested over a period
  of several years.
• How do they work?
• Determining who is eligible for a 401(k) is
  crucial, as is choosing the right investment
  options for the money. This may not be an easy
  decision to make, let alone understand, and many
  small businesses seek help from a professional
  retirement plan provider.

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• When an employee is enrolled in a 401(k) plan,
  they set a specific amount to be deducted from
  their paycheck each pay period, and this
  contribution thats not included in their taxable
  income (except for Roth 401(k)), is withdrawn
  automatically from their paycheck and invested in
  a retirement account. Made up of investments such
  as stocks and shares, the account is selected by
  the employee.
• Employee contributions are capped and the limit
  is dependent upon the type of plan selected and
  the salary of the employee government
  regulations can also change the limit.

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• Employers may also opt to match a certain
  percentage of an employees contributions, up to
  an agreed amount or percentage of their salary.
• If the employee leaves the company, they should
  have remained with it for a certain number of
  years to be able to keep their employers
  contributions, and they usually gain ownership of
  these over a vesting schedule.
• Should you offer your employees a 401(k)?
• While U.S. law doesnt mandate 401(k)s, as a
  small business owner, there are several benefits
  to offering this, such as

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• enabling you to attract the best, and most
  talented people for the job - since many
  employees look for retirement options as one of
  the primary benefits when deciding where to work.
• increasing employee job satisfaction when an
  employee knows that as an employer, youve
  invested in their retirement, theyre typically
  happier and will undoubtedly feel more valued. As
  you doubtless already know, a happy employee is
  usually a more productive one, and they will be
  encouraged to remain in your employ for longer,
  too.

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• tax advantages the SECURE Act of 2019 allows
  businesses with up to 100 employees to claim the
  costs associated with setting up retirement
  plans, as a tax write-off, while employer
  contributions to a 401(k) plan might also be
  tax-deductible.
• If youre still unsure as to whether you should
  be offering your employees a retirement plan such
  as a 401(k), or would like help setting them up,
  reach out to a trusted payroll professional who
  can give you all the assistance you might need.

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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.