Small Business Adviser Employee Benefits

If small businesses are going to win the talent retention battle in 2024, they may want to offer a retirement benefit that streamlines two of the most significant barriers to offering a plan: cost and ease of administration.

In a letter to House Ranking Member Richard Neal, over 20 companies and industry trade associations expressed support for the Automatic IRA Act of 2024, which will provide more access to retirement plans for small businesses.

The new law bolsters small businesses' ability to provide retirement benefits to their employees by offering tax credits to offset costs, however, for advisors, it's an unprecedented opportunity to tap into a new revenue stream.

Small businesses often work with professional employer organizations for certain HR functions, and when they're involved in an M&A transaction, the parties will need to work through a variety of issues.

The American Retirement Association estimates that 19 million additional workers will gain access to a workplace retirement plan through SECURE 2.0's Starter 401(k) provision alone.

Retaining talent is now a top priority for any business but workers whose employers offer a 401(k) retirement plan are on average 40% less likely to leave in their first year, according to Gusto economists.

West Hollywood's $19.08/hour wage – resulting from a law passed in 2021 mandating that wage increases be tied to the rate of inflation – is getting pushback from small business owners who want a moratorium on increases.

The new legislation provides small employers with increased tax credits for new plans and offers reductions on both start-up costs and administrative burdens, yet 2 in 3 small businesses don't offer 401(k)s, says a new survey.