There are many hurdles to address in the post-COVID era. One major complaint for many business owners is the quiet quitting trend and not being able to retain talent. Employees’ goals and objectives are different than they were just a decade ago, and loyalty is not as high on a worker’s priority list as it used to be. A 401(k), although not mentioned as frequently as it was in previous generations, is a very useful tool for you to add incentives and perks. It doesn’t just get people onboard; as they grow, employees are more reluctant to leave it behind to look for another position.
What is a 401(k) Plan?
A 401(k) is a type of retirement plan that allows you to save money for the future and offers specific tax incentives and advantages. An employee who enlists in a 401(k) signs up to have a percentage of their paycheck go directly to an investment account. Employers can then either match funds or make other contributions, while the employee can choose several ways to invest their 401(k).
What Are the Advantages of Partnering with AdvantEdge HR?
Most employers believe that the most important thing to pay attention to in the 401(k) process is their contribution amount, but there are many other factors. If these aren’t considered, they can lead to overpaying several different companies, fines and penalties if not handled correctly from an administrative standpoint, and ultimately, the factors become a drain on their bottom line. When those things happen, a 401(k) plan’s negatives can completely outweigh the positives that it was supposed to provide. When you partner with AdvantEdge HR for your 401(k) offerings, you get many benefits, like demystifying the process – and these other very critical options!
There are a lot of revolving pieces in the 401(k) offering and contribution process that employers often don’t anticipate until they participate in it. Things like being tax compliant, adhering to rules and regulations, and administrative duties are not always simple, especially for an employer who is not well-versed in the process. In many cases, they hire brokers who provide investment options and other third-party vendors who all have a part to play – and who all also have their hands out to be paid. That is a whole lot of loss when you begin to add it up. At AdvantEdge HR, we offer a 401(k) plan that works exclusively with the necessary experts so that we take care of everything from start to finish.
The Reduction of Errors
As a business owner, you have probably realized that the IRS is not an agency that you want to upset. With so many rules, regulations, and never-ending changes, it can be a nightmare to ensure compliance without it truly becoming a full-time job. But you already have a full-time job. Winging it and thinking that it isn’t a big deal if you miss something can be incredibly detrimental, leading to red flags that can have the IRS examining all of your employees and practices. It can also lead to fines and penalties.
Taking Responsibility is a Rare Thing, But That is Our AdvantEdge
When you partner with AdvantEdge HR, you can rest assured that we will take responsibility to ensure that you maintain compliance. We offer an all-inclusive and comprehensive package that takes your 401(k) from start to finish, so you can just sit back and look like the good guy in all of it!
As staffing and retaining talent continues to be an issue, more and more employers are looking for ways to gain loyalty and offer perks that will attract and keep employees. Although 401(k) might not be the shining beacon for all industries that it used to be, for some employers such as lawyers, architects, and engineers, it is still a golden tool to keep your employees happy and onboard for the long haul. Contact AdvantEdge HR today to discuss how we can make you look more attractive to potential employee talent.