A 401(k) plan is one of the greatest benefits a small business can offer its employees. However, many employers believe adopting a 401(k) is manageable and aren’t aware of all of the responsibilities involved until it’s too late. No matter if an employer has 10 or 50 employees, the process of administering and maintaining a plan is still the same. This blog will highlight the three things to know about operating a small business 401(k) plan, and what the employer can do to alleviate some of the responsibilities to refocus on their business.
Are you at the brink of outsourcing your 401(k) administration? Congratulations! It is certainly the right decision, especially if you are a small business. The next step is finding the right Professional Employment Organization (PEO) to fit your small business’ needs. There a variety of organizations out there with different plan options available that it can be overwhelming to choose just one. This blog will provide tips for selecting and monitoring a PEO to make sure they continue to meet your needs along the way.
They’re too expensive to operate... There aren’t enough options to fit our needs... They don’t benefit small businesses.
The 401(k) has a bad reputation especially amongst small business employers, and we can’t blame them. There are multitudes of 401(k) plans available to employers across the nation, but not all sizes fit all. What suits a global corporation may not suit a company of 20 employees, so much so that many employers found in this situation often choose to not provide a 401(k) plan altogether.
The 401(k) plan has a bad reputation amongst small business employers, and we can’t blame them. Some options are too expensive to set up and some aren’t flexible to fit a small business’ needs. Many employers realize there’s a lot of administrative work involved to get one off the ground and to maintain—reasons enough to scare small business employers away.
In 2015, the Small Business Administrator reported small businesses as accounting for two out of three net new private-sector jobs, employing more than half of America’s workforce. These businesses are a major part of the nation’s economic engine. What do they need to continue thriving in a market plagued with highs and lows?