How Adding a 401(k) Can Improve Your Business

How adding a 401(k) can improve your business

A 401(k) plan has a lot of benefits for businesses. It is important to employees but it can also help you to retain and attract new talent. We discuss why adding a 401(k) plan is the right move for your business.

Benefits of Adding a 401(k) Retirement Plan To Your Business

Retirement benefits can help to improve your business outlook. Here are some ways it achieves this goal:

  • It helps your business to recruit the best talent

It can be tough to find the right candidates for your business. When candidates and potential staff are considering your business, they don’t just look at the salary on offer, but they also consider retirement benefits to be important to them. Adding a 401(k) plan can help your business hire and retain the best staff to help your company grow.

  • Lower tax for employees and employers

When business owners and employees contribute their salary to a 401(k) plan, their income is reduced, which puts them in a lower tax bracket. The result is they both pay a lower tax liability at the end of the financial year. 

  • Lower tax deductions for businesses

A 401(k) plan contribution by an employer may qualify as a business expense, which automatically makes them tax-deductible. Small businesses can especially benefit from 401(k) accounts as any matching or profit-sharing contributions are tax-deductible, giving them a much-needed saving on business tax.

How to add a 401(k) plan to improve your business?

Business tax can be a significantly large portion of a business’s expense. Small businesses and start-ups can benefit the most from taking advantage of a 401(k) plan for tax deductions. Larger benefits can increase productivity and employee loyalty to their business by providing them with retirement benefits. 

To add a 401(k) plan, you need to hire a financial accountant or bookkeeper who will help you with payroll services and retirement benefits. An accountant can help you with tax preparation and deductions that come from the 401(k) plan.

If you’re looking for a professional accountant to assist you with your 401(k) plan tax deductions, give us a call today!

How Summer Jobs Help Teens

Hiring a teen for a summer job can help them to gain valuable skills. Here’s how summer jobs help teens, as well as how we can help you with tax preparation for teens. 

Why include teens in job programs and internships?

1.  It teaches teens responsibility 

Some teens do not yet realize the hard work needed to become successful. Helping them to enter the workplace and introducing them to corporate life will teach them how to earn their money and the responsibilities that come with having a job. They will learn how to accept feedback and the value of teamwork, among other responsibilities.

2.  A summer job teaches valuable skills

Teens can learn valuable skills such as good ethics and time management through summer jobs. These lessons are important as they enter adulthood and learn to be responsible working adults. 

3. Build teens’ self-esteem 

Teens are growing up in a digital age where they tend to compare themselves to others on social media. Their self-esteem can take a dive but with a job, they can grow their confidence and feel better about their achievements in life. 

4. Jobs provide independence 

A summer job is a good way for teens to gain independence from their parents. Earning their own money will help them to save up for college or eventually start their own business. They will also learn to be tax-abiding citizens. 

How can we help you with tax preparation for summer jobs?

If you are hiring teens even for summer jobs, or your teen is looking for a summer job, you will need to check the tax implications. At Georgen Scarborough, we help families and businesses with their tax preparation, payroll services, and financial audits. We can help you to sort out your tax documents and help your business with payroll for teens. 

For more information on our tax preparation and accounting services, call us today!