When was the last time you updated your employee benefits package? If you don’t offer retirement benefits, now is a good time to start researching your options. Retirement benefits are often looked at from the perspective of what they do for employees. That’s only half of the equation though. Offering retirement benefits can benefit you as an employer too.
Make Yourself a More Attractive Employer
In today’s business world, offering a competitive benefits package is practically a requirement if you want to make yourself attractive as an employer. Offering retirement benefits means you’re offering them an easier way to make their retirement better, something more people are likely to jump at. This allows you to attract and retain better talent for your business. It’s easier to make your business more successful when you have higher-quality talent working for you.
Enjoy Tax Benefits
Did you know that offering retirement benefits can lower your business’s tax liability? Businesses that implement a first-time 401(k) plan may qualify for increased tax credits thanks to the SECURE Act that was passed in 2019. Offering retirement benefits also gives you the chance to take advantage of business tax deductions. Matching employee contributions to a 401(k) account counts as an ordinary business expense which can be deducted from your tax liability.
The more employees think their employers care about them as people, the higher their morale is in the workplace. Offering retirement benefits and matching contributions to retirement accounts is a good way to show them you care about them. Not only does higher morale lead to employee retention (protecting your bottom line), but it also has a positive impact on productivity. The more productive your employees are, the more money they make you. Higher morale also leads to better job performance. The better your employees do their job, the better off your business will be. All of that helps protect and build your business for the relatively small cost of offering retirement benefits.
Despite the pros of offering retirement benefits, it may seem like too much of a financial burden for small businesses to be worth offering employees. Maybe you’d offer them if it was practical, but it’s more work than you want to take on at the moment. That’s where Quality Payroll comes in. We make it easy for you to offer retirement benefits when you partner with us. It’s just one of the many benefits we offer employers.
Do you need the services of a PEO? Quality Payroll is here to help! Click here to contact us today!