How and why it works to your advantage.
Many small businesses spend countless hours managing their own payroll with the idea that they can’t afford to ask for help. But most business owners who handle payroll internally do not truly understand the effort and time they’re wasting on payroll changes, processing, and filing. It’s huge. Here are some numbers to consider.
Did you know that the average 20-person firm spends $800 per month on payroll efforts?
And the average 100-person firm spends $3,500 per month?
Even more, one out of every three employers gets charged for a payroll mistake, according to the Internal Revenue Service.
Unless you specialize in accounting and payroll services, mistakes are difficult to avoid. With regulations constantly changing, tax filings omissions and errors are easier than ever to make. And the penalties aren’t cheap.
Why spend more and put your organization at risk? When you outsource payroll, you can save money and energy for growth. You protect yourself from risk. And you can eliminate that weekly headache.
A Better 401K Plan
Is yours? 3 things to ask yourself.
Your 401k plan might be good. But is it great? Here are three questions to consider when evaluating your 401k.
1. Is your 401k plan wrapped in an annuity product?
If your 401k plan is wrapped in an annuity product, there are two big reasons why you may want to reconsider. FIrst, annuities come with additional fees, which makes them more expensive than a stand alone 401k fee structure. Second, annuities are primarily used because they offer tax-deferred growth. But your retirement plan is already tax-deferred, so there’s no need for an annuity wrapper.
2. Is your plan with an industry leader?
Look for an industry leader for the size of you 401k plan. What we mean by an industry-leading fund family is a fund family and plan design that offers a low fee structure and excellent investment options. Watch out for proprietary funds.
3. Is your plan professionally bundled or generically bundled?
A lot of 401k plan providers offer standardized 401k solutions that are generically bundled. If you’re looking for a solution that provides a high level of customer service, look for something professionally bundled. Professionally bundled solutions group top-rated fund families with local investment advisory and compliance support. This solution offers a fully customizable investment and selection plan with a high-level of customer service support and fiduciary compliance.