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How Retirement Benefits Create Business-Wide Advantages

Chris Magno

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A retirement plan isn't a typical employee benefit — it's a strategic investment that delivers tangible business advantages. And for forward-thinking organizations, retirement benefits are a must-have.

Not offering a company-sponsored retirement plan? You might want to reconsider.

Retirement plans have evolved beyond simply helping employees save for their future. A well-designed plan can positively impact a business's bottom line, culture and stability.

And with today's integration technology, you can seamlessly connect retirement plan data with existing business systems to reduce plan administration time — and costly errors — while supporting the long-term success of your business. Here's how:

Attract and retain top talent

In the current labor market, the competition for skilled employees is fierce. But employees who feel valued by their employer are 65% more likely to be loyal. Offering a retirement plan demonstrates your investment in your employees' and prospects' long-term financial well-being, helping to ensure a more comfortable financial future.

Boost employee satisfaction and productivity

Financial stress is a leading cause of workplace distraction and decreased productivity. In fact, financially stressed employees are less productive at work and can cost their employer productivity and money. With the right benefits, including a comprehensive retirement plan, employees are 56% more likely to be productive on the job, while gaining the confidence they need to take control of their finances.

Take advantage of tax benefits

Retirement plans offer significant tax advantages and financial incentives. For example:

• Employer contributions to employee retirement plans are tax-deductible business expenses.
• Under SECURE 2.0, small businesses may qualify for tax credits covering up to 100% of qualified start-up costs for sponsoring a retirement plan.
• The new legislation also offers a tax credit for employer matching or profit-sharing contributions for the first five years of the plan.
• Plus, plan participants who make pre-tax 401(k) deferrals lower their taxable income and may be eligible for a tax credit.

These financial benefits are optimized when your retirement plan integrates seamlessly with your payroll system, ensuring accurate tax calculations and proper documentation of all contributions and credits.

Meet state mandates and reduce compliance risk

An increasing number of states are implementing mandatory retirement plan requirements for businesses. Having your own retirement plan in place helps your business meet state-mandated retirement program requirements, avoid potential penalties for non-compliance and maintain control over your retirement offering rather than defaulting to state-run programs.

With retirement plan technology integration, compliance becomes increasingly more manageable, automatically applying correct contribution limits, performing required testing and more to reduce administrative burden and compliance risk.

Enhance business reputation and brand

Companies that demonstrate a commitment to employee financial wellness are recognized as employers who are invested in their people. This reputation advantage extends to your recruitment efforts, customer relationships and overall brand perception.

Offering a quality retirement plan enhances your company's reputation among current and prospective employees; clients and customers; vendors and partners, as well as the competition.

Simplify retirement plan administration with modern solutions

Modern payroll and retirement plan integration makes plan administration easier than ever by offering:

• Reduced manual data entry and associated errors
• Simplified enrollment and onboarding processes
• Automated contribution processing directly from payroll
• Streamlined year-end reporting
• Single sign-on experiences for administrators and employees
• 24/7 employee access to their accounts

This HR and retirement plan integration eliminates traditional pain points, reducing the time and resources required to manage your retirement plan efficiently and effectively.

Retirement benefits: A strategic investment in your business

By offering a 401(k) plan, companies can help workers take the first step toward preparing for the future. And 401(k) integration with your existing payroll and HR infrastructure transforms retirement benefits from a simple offering into a strategic business advantage that helps both your business and your employees thrive.

ADP offers integrated retirement solutions to help you implement a competitive retirement program.

Connect with an ADP retirement planning services specialist to discuss ADP's retirement plan solutions or call (800) 432-401K .

_{ADP, Inc., and its affiliates do not offer investment, tax, or legal advice to individuals. Nothing contained in this article is intended to be, nor should be construed as, particularized advice or a recommendation or suggestion that you take or not take a particular action. Questions about how laws, regulations, guidance, your plan's provisions, or services available to participants may apply to you should be directed to your plan administrator or legal, tax or financial advisor.}

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