Among the legal obligations of a company is staying abreast with the requirements under the employment law. This includes providing a safe working environment, offering proper health insurance, and standing against workplace harassment and discrimination. Following or implementing these workplace practices is crucial for establishing a good company culture. Plus, they help your business to operate legally.
However, if you want to make your company a better workplace for your employees, helping them with retirement is a smart move. Take note that there are now laws that actually require companies to provide retirement plans, in particular. But the benefits are surely worth it. Besides attracting the top talents, a small business providing retirement plans can receive tax advantages. For instance, you can qualify for tax deductions when you make or match contributions. Federal lawmakers are also looking for more ways for businesses to receive extra tax credits. Read on to learn more about how you can help your employees in planning for retirement.
1. Set up a retirement savings plan
Setting up a retirement saving plan does seem costly and complicated, especially for a small business. The reality is, it can actually offer tons of benefits to your company and employees. The good thing is, a retirement savings plan can promote saving habits in your team. At the same time, your business can be eligible for tax breaks. Some of the best options include 401(k)s, SEP IRA, and Simple IRA. You can check the official website of the IRS to see which plan will suit your business. In general, you have the option to provide the accounts that they can use or match the contributions of your employees as incentives.
2. Recommend reputable lawyers
Finding experienced and reliable lawyers for their retirement financial planning and needs can greatly help your employees retire without issues. For one, you can seek a trusted estate planning attorney who can guide them in managing their assets, from financial to physical, and ensure the right beneficiaries will receive them.
As for your employees who are already retiring, you can recommend a credible elder law attorney. Such experts cannot only help your retiring workforce apply for public benefits but also guide them on overcoming the legal challenges of receiving long-term care. Generally, lawyers can also assist in arranging pensions, reviewing current income and expenses, and planning for other retirement goals.
3. Encourage maximum contributions
If you have successfully created a retirement savings plan for your workforce, it’s best to encourage them to max out on their contributions. Find a reputable financial institution that can set up the accounts for your employees. Nonetheless, take note that it’s still up to the employee to pick the amounts of their contributions. This means that contributions are not mandatory.
Depending on your state, enrolling your employees into a pension scheme may be part of your legal obligations as an employer. For automatic enrollment, look for a reputable pension provider who provides a pension scheme that meets the legal requirements.
4. Promote financial wellness education
Educating your employees about financial wellness is an effective way for them to encourage saving and planning for retirement. Bear in mind, though, that simple communications or talks won’t be enough. To figure out the best financial or retirement education plans for your employees, there are several things you need to consider. These include your employees’ levels of retirement awareness, long-term goals, and tax considerations. Ideally, you should choose a class or course that will teach your employees about the importance of saving early, social security, tax implications, and different retirement accounts.
5. Schedule regular advisor analysis
Setting up a retirement plan for your employees isn’t enough. It should be constantly monitored and updated. A business advisor can help you confirm if it’s actually helping your employees. They can perform a complete breakdown of the provided retirement accounts and the effectiveness of your current process. They may also carry out a gap analysis to help you and your workforce determine the more financially feasible and practical time to retire. Plus, they can recommend other investment strategies to make it easier for your team to achieve their long-term goals. Regardless of whether you choose to hire an advisor or perform the monitoring yourself, regular check-ins are crucial for the program’s success.
Offering retirement plans and assistance may seem like a big task for any company. But if you want to continue attracting the best talents, you need to offer them a little extra on top of those required by business law. Call on the right attorney to help you legally set up your plans for supporting employee retirement.