It does not matter if your business is failing or thriving. If you have any employee, you need to be offering some way for them to invest in their retirement. No employer knows how long their business can last. It could be the next Facebook or just another failed eating establishment, you still need to offer your employees something. Employers constantly complain about the cost associated with the plans but there are types of plans for any type of business. If your business is barely getting by, a salary deferral plan is the best option. This puts the already low cost of investing on every participant and is set up by your payroll company. After you get the plan started you can tell every current and future employee they have the option of taking a portion of their paycheck and invest in their retirement. This is a great benefit that will only help retain and attract employees even if your business only offers minimum wage. An adviser can also meet with your employees to get them enrolled. This makes for a more motivated and knowledgeable employee that can rally behind your business as they know that you at least care enough to offer a retirement option. They do not need to take advantage of it but a more aged employee might jump at the bit to be able to participate in that type of plan or a young individual can start their investment journey. As stated previously, this plan is paid by the participant. It is basically an individual retirement account (IRA) that is funded by deductions from the employees salary. So absolutely no out of pocket expense for your business. Now if you want to pay for your employees plan or be able to offer a match there are multiple types of plans as well. A simple IRA plan allows every individual to participate in an account and allows the employer to offer a matching contribution. Simple plans are perfect for small business with around 10 employees and you are looking to offer a 2% matching contribution. Other than the match you can avoid all costs as with the salary deferral plan. These plans are low cost compared to actual 401k plans but do not offer flexibility. The 401k is more complex and involves more testing and costs than the other plans and is suitable for an employer with more than 15 employees as scaling the other plans is extremely difficulty and time consuming.
It does not matter how profitable your business is because there is a perfect type of platform for you to offer to your employees. If this sounds like something you are interested in please reach out to me at email@example.com or by phone at (419)806-2986. I would love to see if I can help your business.