As with offering your employees health insurance coverage, offering retirement benefits is a great way to boost your compensation package, and both attract and retain a valued workforce. In some instances, small business owners can even take advantage of retirement plans for themselves.

1. Should You Offer Your
Employees Retirement
Benefits?

2. As with offering your employees health insurance coverage, offering retirement
benefits is a great way to boost your compensation package, and both attract and
retain a valued workforce. In some instances, small business owners can even
take advantage of retirement plans for themselves.
If you’re not sure whether offering retirement benefits to your employees is
worth it, here are some of the advantages associated with doing so:
Enjoy tax advantages for your business
Congress wants to encourage employers to offer retirement benefit packages to
employees, so there are some significant tax advantages to be had when you do

3. Keep your employees working hard for you
Research has shown that retirement benefits based on profits, can make
employees more motivated within their role and more inclined to work harder
and more effectively
Attract the best employees for the job
When it comes to attracting new employees, a retirement package may be the
thing that makes them want to come and work for you, and not another company

4. Supplement your compensation package
Many small businesses have high start-up costs or little cashflow, but with a
retirement plan, you can use it to supplement your compensation package
Save for your own retirement
Offering retirement benefits to your employees allows you to also take advantage
of them and save for your own retirement

5. Do you need professional guidance when offering retirement
benefits?
With the complexities of pension rules and bewildering tax aspects of retirement
plans, it’s never a bad idea to seek professional help when offering retirement
packages to your employees. That said, you should try to have a basic
understanding of the different plan types and determine why you want to offer a
plan, before consulting with a tax advisor or accounting professional:
All pension plans are one of two types = qualified or non-qualified, but
they can be further divided into the broad categories of defined benefit and
contribution plans, and hybrid plans.

6. If a retirement plan qualifies, it will meet the Employee Retirement Income
Security Act of 1974 (ERISA) and Internal Revenue Code requirements, while
also being qualified for some hefty tax benefits:
● Any income the plans assets generate, is not subject to income tax because
the income is earned and managed within the framework of a tax-exempt
trust
● Employersare entitled to current tax deductions for contributions to the
plan.
● Participants of the plan are not required to pay income tax on the amounts
contributed on their behalf, until the year that the employer distributes the
funds to them

7. ● In some instances, qualified plan beneficiaries are given special treatment
when it comes to their taxes
If a retirement plan doesn’t qualify, it will not meet the requirements of ERISA
and the Internal Revenue Code, and beneficiaries are not permitted to take
advantage of preferential treatment when it comes to their taxes.
The majority of small business owners opt to offer their employees a
retirement plan that is qualified as an employee benefit, and this is
simply down to its tax advantages. However, if you would like to
discuss your options in further detail, you can consult with an
accounting specialist.

8. Apollo Payroll is dedicated to delivering expert advice, responsive service, and
highly accurate payroll processing and reporting to ensure the success and
growth of the business that we serve. Our services include comprehensive payroll
services in Homestead and other cities in Miami-Dade County, employee
background check and group health insurance in Miami & Coral Gables