Small business owners juggle many roles, with most feeling chronically over-extended. Many are so busy managing the daily details of operating a business that they put off establishing a retirement savings plan benefit for their employees. However, employees have different priorities and may not stick with an employer that does not prioritize their retirement.
Although finding the time for yet another task may cause employers to feel discouraged, the good news is that they can easily address the retirement planning needs for the employees of a growing business. Hauser Insurance Group also encourages employers to consider the four benefits outlined below when establishing a retirement savings plan for employees.
High-Quality Retirement Savings Plan Benefits Attract Top Job Candidates
The starting salary is just one of many factors potential new employees consider when deciding whether to accept or decline a job offer. Most look at the entire benefits package, including employer contribution to retirement benefits. Offering an attractive retirement savings plan is especially important for smaller businesses to help them compete for talent with larger organizations.
Effortless Savings for Employees
Giving employees the chance to contribute to their retirement savings through payroll deduction is a simple way for them to save without having to give it much thought. Since employees do not receive money immediately and directly, they do not miss it. In fact, many will be surprised to learn just how much their retirement savings grew over the years through seamless payroll deduction.
Multiple Ways to Earn Money for Retirement
The bulk of funds in an employee’s retirement account will come from their own paychecks, but self-funding is far from the only source. Most employers offer a set percentage towards retirement savings, which can be as high as 50 to 100 percent of what the employee contributed. Dividends and compound interest add to the balance, making a larger nest egg to last throughout each employee’s retirement years.
Both Employers and Employees Save on Taxes
The Internal Revenue Service (IRS) allows employers to deduct the full amount or a portion of what they contribute towards retirement savings on behalf of their employees. The result is a lowered tax bill or higher refund each year. Employees pay no tax on their retirement savings at the time of contribution but rather when they withdraw from their retirement savings account once they are no longer working. Receiving the benefit on a pre-tax basis also lowers the amount of the employee’s taxable income for the year. they put off establishing a retirement savings plan benefit for their employees. However, employees have different priorities and may not stick with an employer that does not prioritize their retirement.
Hauser Insurance Group Advises Employers on Retirement Savings and More
Hauser Insurance is well-respected in the employee benefits and insurance space due to the company’s extensive experience with multiple product lines. Small and large business owners feel assured they can depend on Hauser Insurance to guide them correctly, for the benefit of their employees and overall profitability for the company.