To the uninitiated, it may not be immediately apparent why you should offer retirement plans to your employees. It might be true that other benefits, such as health and life insurance, are more pressing. But as the prospects for retirement among the younger generation get bleaker, instituting small business retirement plans can have untold advantages—both for you and your employees.
Attract and Retain Workers
Undoubtedly, one of the greatest benefits of offering retirement plans to your employees is that it will help you to attract and retain workers. Hiring top talent is never easy, but having a competitive benefits package can give you the upper hand. After all, the greatest workers are not likely to settle for much less. There is a growing concern that millennials will not be able to retire, so this could help you recruit younger talent as well.
As for the employees you already do have, offering an excellent retirement plan can incentivize them to stick around until they reach retirement age. As a small business owner, you may have mixed feelings but eventually having to watch your finest workers go. But the motivation of working toward retirement will draw the highest quality of work out of them.
How small is your business? If you’re less than 100 employees, you’re in luck. If you offer retirement plans to your employees, the government could provide you with tax credits in an amount of as much as 50% of your startup costs.
But the tax benefits for small business retirement plans don’t stop there. Many business owners choose not to contribute to their employees’ tax plans, such as 401(k)’s. They should give this some careful reconsideration. If your business makes contributions into the retirement plans of your employees, you’ll be glad you did so when tax season comes around. You will have the ability to deduct these contributions from your tax bill.
With this in mind, you could actually end up saving money by offering retirement plans to your workers, while simultaneously investing in their wellbeing.
Are you intimidated by the prospect of setting up a retirement plan for your employees? We’re here to help. There has never been an easier time to offer small business retirement plans. They are just one of the numerous financial services we offer. As a small business ourselves, we have an intimate understanding of the needs of other small businesses. We’re here to help.
Contact Bowman & Company Today
Bowman & Company CPA, PC provides all of our individual and small business customers with experienced, accurate, and affordable financial services. Our financial services aim to decrease your taxes and increase your net worth through responsible, timely, and accurate record keeping. We offer our services to clients throughout the Washington, D.C., metropolitan area, including Maryland and Baltimore County, Columbia, and Howard County. For more information on our offerings, contact us online or call us at (410) 381-8121. You can also find us on Twitter, Linkedin, Facebook, and Youtube.