There are a few things that are essential to keep your employees happy and to retain them at your company for years to come.
First and foremost, you need to create a comfortable work atmosphere where employees don’t dread coming to their job every day. Without this essential component, none of the other factors matter very much.
Secondly, you need to pay your employees fairly. If you attempt to undervalue your employees, it’s very likely they’ll leave you for one of your competitors and never look back.
Lastly, you should strongly consider implementing a small business retirement plan. With all of the uncertainty we’ve seen over the past few years, people want to have a measure of assurance that they and their families will be protected in their retirement years. One of the best ways to do this is to start a compelling retirement plan for your small business.
Different Kinds of Retirement Plans for Small Businesses
- 401k Plan
401k plans can be used by huge companies with thousands of employees, and by self-employed individuals. These plans are extremely versatile and can lead to huge savings and benefits for both employees and employers.
But, as is the case with all things, this plan has many benefits and a few drawbacks. For instance, the business owner has a lot of responsibility to maintain the plan and ensure that employees interests are taken care of. This means that employers must ensure, through a number of methods, that lower-wage employees aren’t being unfairly compensated as compared to higher-earners within the company.
In fact, the IRS conducts test of compliance each year to determine whether or not businesses are being fair to their employees. If companies have been favoring higher-wage earners, they will be slapped with fees and paperwork that creates significant problems.
- SEP Plan
The Simplified Employer Pension plan is one of the most straightforward plans available to small businesses. Essentially, the plan is funded completely by employer contributions. Each year, employers can decide whether or not they will contribute to their employees’ plans and how much they will contribute. Therefore, self-employed business owners often prefer this plan to some of the other available options.
- SIMPLE IRA Plan
The Savings Incentive Match Plan for Employees is a special type of IRA that is reserved for companies with fewer than 100 employees. This plan is extremely simple, as the name implies, and has few regulatory requirements. However, if a company expands beyond 100 employees, they are no longer eligible for the SIMPLE IRA.
Is It Time for You to Start a Retirement Plan for Your Company?
The type of plan you choose is almost inconsequential. What matters most is that you choose a plan which allows you to provide a compelling incentive to your employees.
If you have questions, comments, or concerns about starting a retirement plan for your business, consider contacting a plan provider like Ubiquity today. These professionals can discuss your business needs with you and help you decide on a plan with will work for your company. Call today!