401(k) Payroll Integration Made EasyPosted on January 23, 2017
A 401(k) benefits packages gives employees peace of mind and a solid foundation for their retirement plan. It’s good business for them, and it can be good business for employers — even if you’re a small-to-medium size company.
So, why does offering a 401(k) package make sense for small to mid-size businesses?
It’s good for employees: Your small-to-mid-size business will stand out. A 401(k) might be a standard part of the benefits package for larger companies, but if your business is small-to-medium sized — anywhere from a few dozen to a few hundred employees — offering a 401(k) is a rarity. When you add a 401(k) plan to your retirement benefits package, it sends a signal to your employees (and to potential employees) that you’re a serious business, you have a solid financial foundation and you’re interested in being more than than their employer — you have a sincere interest in their retirement readiness. This can help increase recruiting and employee morale while reducing employee turnover.
It’s good for business taxes. Employers who implement a 401(k) can qualify for a tax credit that can help offset many of the setup fees in the first three years. Not only will potential tax credits help ease the start of your 401(k), but company matched contributions are also tax deductible.
It creates an extended support network. 401(k) record keeping and compliance is heavily regulated by federal agencies. That can sound intimidating, but by partnering with an established, nationally recognized payroll and HR provider, you can ensure your company is in compliance. Your payroll and HCM platform should be able to work seamlessly with your Financial Advisor, a Third Party Administration (TPA) and select Recordkeepers to reduce the potential administrative burden. This group of partners and platforms creates a network of support that work to ensure your business thrives.
It doesn’t require a lot of paperwork. Today, modern 401(k) plans are set up online with self-service, paperless options. The support received by your payroll/HCM provider, your financial advisor and TPA also reduces much of the paperwork without increasing costs. And with a trusted partner, you can integrate even more of your payroll and HR needs, from the onboarding process to ongoing benefits management – all from a central platform.
How Paycor Can Help
Paycor simplifies benefits management. In order to remain competitive, companies must find ways to simplify their day-to-day processes and minimize time-consuming, manual tasks. Paycor’s 360-degree 401(k) service gives clients time back in their day by streamlining an additional, important aspect of benefits management.
Data preparation and pre-formatted files make 401(k) benefits management easy to use and easy to integrate with existing HR and payroll solutions. Our comprehensive file availability, quick set-up and consistent support means your employees can access and make changes to their plans without wading through hard-to-understand paperwork.
For more about Paycor’s 401(k) service and how your organization can benefit, click here.
Sources: Forbes & LinkedIn
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