A 401(k) profit sharing plan is a must if you intend to attract and retain top talent. But the ongoing administration of a 401(k), including often complex and changing legal implications, can be daunting.
The best solution for your company may lie in partnering with a professional employer organization. A PEO can step in and work with you to cut costs, save time, and offer a customizable 401(k) that’s right for your business.
What Your PEO Can Do for You
A PEO is a firm that provides services under which an employer can outsource such functions as employee benefits, payroll, workers’ compensation, recruitment, risk and safety management, and training and development. It does this by entering into a co-employer relationship with you – hiring your employees and thus becoming their employer of record for tax and insurance purposes.
When it comes to your 401(k) plan, your PEO can help you:
- Save time: Your PEO provides specialists in profit sharing plans, freeing up your HR team members to tackle other business goals and alleviating your administrative overload.
- Customize a plan: Working with a PEO, you can provide a 401(k) plan that fits exactly what you and your employees want – and which maintains compliance with all legal and government regulations.
- Offer a retirement plan that not only benefits your employees, but also strengthens your business for the long term. This includes establishing 401(k) eligibility requirements, vesting, tax-deductible matching and profit-sharing contributions.
About ESAC Accreditation
If you’re considering working with a PEO, look for a firm that is accredited by the Employer Services Assurance Corporation. ESAC accreditation is the gold standard for PEO best practices and financial reliability. Only about 5 percent of PEOs have earned this distinction, which provides you with time-tested verification and assurance of all areas of PEO quality.
Partner with Lyons HR!
To learn more about what a PEO partnership can do for your company, read our related posts or contact Lyons HR today. In addition to assisting with your retirement plan and related benefits, we offer expertise in specific areas of HR from employee handbooks, labor law compliance and staffing to OSHA assistance and COBRA, HIPAA and ERISA compliance. We’d be honored to become your valued business partner.