As a business owner, you can take care of your employees in many ways, such as through salary, healthcare options and paid vacation time. However, setting up an employee retirement plan is one of the smartest ways to provide for one of your key assets – your people.
A quality retirement plan can:
- Help attract and retain valuable employees
- Reduce your company’s tax burden
- Allow you to invest money in your own retirement
- Provide for your employees
Not only are retirement plans great for attracting and retaining valuable employees; it can also help you as an employer.
Establishing an employee retirement plan offers tax benefits because employer contributions to retirement plans are generally tax-deductible. This means that your business may be eligible for a tax credit for establishing a qualified retirement plan.
You can also invest money for your own retirement in the same plan you set up for your employees. As an added bonus, employer contributions are free from payroll taxes. Investment income generated by the pension fund, in which contributions accumulate, are tax exempt.
For employers:
- Tax deductible contributions to reduce your corporate income tax
- Substantial benefits to your key employees
- A great way to retain key talent
For employees
- Assistance with retirement planning goals
- Contributed pension funds that are protected and safe from company risk.
As a business owner (even if you are self-employed), you can usually invest more through a business retirement plan than through a Registered Retirement Savings Plan or Tax-Free Savings Account (TFSA). There are many types of retirement plans. Each has its own benefits, features, levels of complexity and administrative costs. Some are designed for large companies, others for smaller enterprises.
Not every business should have the same plan. At Mondelis we can find out the goals of your plan, and then build in the features that match your objectives. Our actuaries have many years of experience and knowledge, and are here to make sure your company’s retirement plan complies with all legislative requirements.
To learn more about how retirement plans can benefit your employees and business, contact us today.
