Providing additional benefits to the employee are sometimes questioned when economic conditions are challenging.    A Georgia 401k added to a list of benefits for the Georgia based business can be economically beneficial and add REAL DOLLARS to the business’ bottom-line:

1. The 401k employee “benefit” can save the employer REAL DOLLARS.  The expectation to “match funds” is a preceived requirement to the 401k “benefit”.  Saving prior to the tax implications is the REAL benefit for the Employer and Employee.  Example: A dollar contributed by the employee saves the employee taxable income.  The Employer saves REAL DOLLARS by side-stepping FICA and other employee applicable wage expenses.
2. A leaner work force can increase employee responsibility while adding employer vulnerability. The decrease in work force often results in the staff/team taking on more responsibility.   The added responsibility can position the employer with additional vulnerability if a key person were to resign.   Adding “employer low-cost benefits” or “employer no-cost benefits” at the same time of adding employee responsibility augments the employee’s emotional security during economically trying times.

There are other issues like the “cost to replace” an employee but future posts will provide more information.

Start your investigation of implementing a 401k program or other employee/employer funded programs by submitting the form below.   A Georgia 401k specialist will be in touch…

NOTE: We do not spam your information.  We work with a couple of 401k specailists that focus on the Georgia Business and 401k solutions.

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