In March of 2019, NJ Governor Phil Murphy signed the New Jersey Secure Choice Act which authorized the creation of the Secure Choice Savings Program. This plan is a state-sponsored retirement plan that is designed to help more employees save and be prepared for the future. It requires that employers with 25 or more employees are required to either sponsor a 401(k) plan or another equivalent plan, or they can adopt the New Jersey Secure Choice Savings Program.
Custom Plan or State-Run Program: Benefits of a Personalized Plan
Retirement plans are crucial to the employee benefits package. The right plan can differentiate your business and contribute positively to your culture, all while providing tax benefits and improving financial wellness.
Attracting and rewarding employees.
The biggest headache for many small businesses in 2022 has been recruiting and retaining employees. If your business offers a bare minimum 401(k) plan, it’s not doing you any favors if you are competing for new talent or rewarding loyal employees.
No “one-size-fits-all” approach.
No two small businesses are alike, so why should your retirement plans be? A financial advisor can help you identify plan goals, navigate options specific to your workforce, implement custom retirement solutions, and regularly check in on your plan’s progress.
Reduced administrative burden.
Employers in a state-run program may have more manual duties when it comes to registering and enrolling employees, managing deferrals and opt-outs, synchronizing with payroll, and more. Rely on financial and payroll professionals who will help keep you compliant with the state requirements.
91% of employees whose companies auto-enroll them in their workplace 401(k) do not opt out.
Why should you automate/integrate your retirement plan options for your employees?
In a small business, chances are your office’s administrative staff are already multitasking and juggling HR responsibilities. A custom plan with ability to integrate with your payroll and HR is one more way to reduce administrative burden on your team.
Accuracy – Less chances of mistakes or human error.
An automated system for a retirement plan, like most other automated programs, takes the potential for human error out of the equation. Your employees will not need to worry about making their own individual deposits along with not having to worry about you doing it as their employer.
Reliability – It is easier for your employees to save.
Known as “set it and forget it”, automating your retirement plan helps you keep the same contribution without needing to put continuous thought into it every paycheck. Allowing an automated retirement plan for your employees helps work towards a successful savings plan for their future.
Productivity – Employees will appreciate the option that shows you care.
When you provide options for your employees that make saving for their future easier, they will appreciate you as their employer. This level of appreciation and respect helps your employees trust you as an employer which allows them to be more productive during the work day. It is one less thing that everyone needs to worry about.
Want to find out more about the 401(k) options available to you and your business? Contact an Abacus Payroll advisor to learn more today!