Small to mid-sized companies rarely offer 401(k) plans. While offering a retirement plan provides your company with a competitive advantage in recruiting and retaining top talent, most smaller companies simply cannot afford to do so or are afraid of all the paperwork that comes with it. By integrating 401(k) plans into your payroll, you can actually cut both your costs and paperwork. Continue reading as we explain how.
Why Most Small Businesses Don’t Offer 401(k)s
Several small business owners are under the impression that offering a 401(k) plan is something that only large companies can afford. However, this plan actually has the potential to be even more cost-effective for small businesses that have lower operating costs–not to mention the added benefits for both you and your employees.
When you hire a Professional Employer Organization (PEO) to handle your benefits administration, you immediately gain access to the same benefits offered by larger corporations at a fraction of the price they pay, and the fear of whether or not you can afford to offer a 401(k) is no longer.
Another reason that most small business owners opt out of offering retirement plans is due to the complicated administration that comes with offering such benefits. Many small business owners are afraid of the complex electronic transactions and paperwork that 401(k)s require. With a PEO, you can kiss this fear goodbye and let our professionals manage and streamline your paperwork, keeping you organized and compliant.
The Benefits of Offering an Integrated Retirement Plan
There are many benefits to integrating a retirement plan into your payroll. When you hire a PEO to merge the two, you can experience:
1. Increased employee devotion
Offering a retirement plan displays your commitment towards the financial security of your employees, which in turn increases their devotion and loyalty. At Delta Administrative Services, our HR professionals are skilled at increasing workplace productivity and employee satisfaction in more ways than one.
2. Increased compliance
In order to offer qualified retirement plans, you must produce all of your compliance testing results, management reports, IRS forms, DOL forms, and other required documents while remaining compliant with federal and state laws. Don’t worry–your PEO will handle this for you to ensure that you are always compliant.
3. Increased efficiency all around
Letting a PEO integrate 401(k) plans into your payroll will help you minimize paperwork, streamline your process, and better manage your plan processing. Our HR professionals will continue working with you every step of the way to manage your payroll, benefits administration, HR, and more.
4. Payroll management security
When you outsource your benefits administration to a PEO like Delta Administrative Services, you can rest assured that your funds and transactions will be handled efficiently through highly safe and secure systems and processes.
By integrating your payroll processing with 401(k) plans, you can drastically reduce the endless amount of paperwork that comes with them, all while achieving a competitive advantage in the market by offering what most other small businesses cannot. A PEO can help you seamlessly merge the two to transform your small business into the ideal work environment for both you and your employees. For more information on how Delta can help with your benefits administration, schedule a call with us!