How Small Businesses Can Provide The Best Retirement Benefits

If you’re a small business owner trying to recruit top talent, and you aren’t offering your employees a retirement plan, you’re not alone. A 2017 study by PEW discovered that one-quarter of private-sector workers in the United States lack access to a workplace retirement savings plan. This is problematic but understandable, especially for small business owners who don’t have the resources to administer a retirement plan for their staff. However, in order for small businesses to remain competitive and grow, benefits packages must reflect the company’s commitment to the employee’s future.

Let’s take a look at a few facts:

• Only 51 percent of privately held companies offer retirement benefits to their employees.
• 80 percent of American workers said that they would choose a job with benefits over an identical job that offered 30 percent more salary but no benefits.
• 61 percent said that they would leave a higher paying job for a job with a lower salary but better benefits.

Clearly, American workers expect employment to come with retirement benefits and will leave a business that doesn’t provide benefits for one that does. So where does that leave the small business owner wanting to be competitive?

At FutureBenefits of America, we serve small business owners as a third-party administrator. In short, we exist to make it easier for the small business owner to provide an attractive employee 401(k) package.

Here’s how we help small business owners offer employee retirement plans:

1. We get to know you first.
People are always our priority and our customers come first. We want to get to know you and your business so well that we are a natural extension of your team. When you have a question or concern, you can pick up the phone and talk to your representative. We hate red tape and go the extra mile to ensure that you always feel heard and never feel stuck.

2. We provide affordable 401(k) options through Multiple Employer Plans (MEPs)
A big reason why small businesses don’t offer retirement benefits is the cost. The typical way of accomplishing this can become really expensive. So we helped pioneer the idea of Open Multiple Employer Plans (Open MEPs). An Open MEP is more cost-effective than traditional 401(k)s which makes it more affordable for small businesses to offer this benefit to their employees. This article unpacks everything you need to know about the benefits of Open MEPs to small businesses.

3. We are the third-party administrator of your retirement plan
As your plan’s third-party administrator, our service to you includes administering compliance testing and the preparation of IRS Form 5500. This document directs how the plan operates and what provisions are allowed, such as contributions, distributions, and other options. The complexity of managing all the details can be overwhelming to employers, so we provide the eagle-eye you need to ensure everything is operating smoothly and within compliance.

4. Our record keeping process is reliable and transparent
We take the burden of record keeping off your shoulders. Record keeping can be tedious but we are experts in the federal requirements and regulations surrounding 401(k) administration and stay on top of any changes that may emerge. Further, we handle the payroll paperwork, track eligibility and vesting status, and operate a website and call center to answer any questions your employees may encounter.

Even if you can offer your employees a generous salary, please don’t skimp on the benefits. Everyone needs to plan for their retirement, and that’s a burden employees don’t expect to shoulder on their own. Consider how FutureBenefits of America and Open MEP plans could be the key differentiator to growing your workforce.

Next Steps

Schedule a call with us today and we can answer any questions you have. You can trust us to provide stellar customer service and do everything we can to ensure that you and your employees are having a good experience. If you ever have questions you can’t immediately answer, just give us a call and we can get you everything you need to help your business thrive.