EMPLOYEE BENEFITS

In today’s highly competitive marketplace, it’s becoming increasingly difficult for business owners to attract and retain top talent. Salary is no longer the sole compensation driver. Employees are also looking at an employer’s overall benefits package and its potential to help address their real concerns of financially protecting their families in addition to adequately planning for retirement.

You probably already have a standard benefits package in place, one that includes medical and dental coverage, disability income insurance, and a retirement plan. However, your competitors more than likely offer a similar benefits package. These days, employees are looking for benefit plans above and beyond the standard packages that most employers already offer. These benefits often provide the primary incentive for key employees to join and remain loyal to your company.

Designing an attractive employee benefits package may seem expensive, but the tax considerations1 can help offset the overall cost, and its impact on current and prospective employees could be rewarding. Through our network of Financial Services Representatives, we can help you provide an attractive employee benefits package for the employees that are most valuable to the success of your company.

Consider a few of the following options for your employee benefits program.

 

Annuities

 

Establishing individual retirement arrangements funded by annuities is easy for a small business. Offering this type of benefit may help you retain and motivate your company’s employees.

 

Disability Income Insurance

 

Provide employees with income protection that supplements your company’s group long term disability plan in the event of a disability.

 

Executive Benefit Programs

 

We offer solutions that are designed to assist in recruiting and retaining executives.

 

Executive Group Life Insurance

 

Gain a competitive edge by providing valuable life insurance benefits to your executives and senior professionals.

 

Long Term Care Insurance

 

Help retain your employees and enhance your company’s benefits while taking advantage of tax savings.

 

Retirement Plans

 

Offering your employees a retirement plan is a way to help them save for the future and is a great incentive as part of an employee benefits package.

 

Savings Incentive Match Plan for Employees (SIMPLE-IRA)

 

In this written salary reduction arrangement, eligible employees contribute to an IRA in their name. As an employer, you are required to make annual contributions for each eligible participant. This type of arrangement is available to self-employed individuals or owners of companies that have 100 or fewer employees and no qualified retirement plan. Employees are eligible for a Savings Incentive Match Plan if they earn at least $5,000 annually.

For 2013, the maximum employee contribution limit is the lesser of 100% of compensation or $12,000. SIMPLE IRA owners age 50 or older (as of December 31 of the tax year to which the contribution relates) may be eligible to make an annual “catch-up” contribution each year of $2,500. The money contributed to a SIMPLE IRA will accumulate tax deferred until money is withdrawn. Withdrawals are subject to ordinary income tax and, if taken before age 59 ½, a 10% federal income tax penalty may apply and this penalty is increased to 25% for distributions taken within the first two years of participation in the plan.

 

Simplified Employee Pension Plan (SEP-IRA)

 

This type of arrangement is for businesses of any size, including self-employed individuals. In order to be eligible, employees must be at least 21 years of age and employed by the company for three of the last five years. In this agreement, employers can make contributions to IRAs for all eligible employees. IRAs are established by each individual and funded entirely by the company. Employer contributions are discretionary and the employer can determine the amount or percentage each year.

 

Defined Benefit Plans

 

Commonly known as pension plans, defined benefit plans provide employees with a fixed benefit upon retirement that is typically dependent on salary, length of employment and age at retirement. Whether you are looking for a fully bundled, semi-bundled, or investment-only approach to plan service, or you are looking for a provider that can combine services for both defined contribution and defined benefit plans, our service model provides you with the flexibility you need to help achieve and maintain the goals you set for your plans. We can assist you whether your plan is active, frozen, or terminating. Defined Contribution Plans The most common defined contribution plan is the 401(k), a company-sponsored, tax-deferred retirement savings plan. Growth in these plans typically depends on employee and/or employer contributions and investment selections. Companies of all sizes may offer them as a way to both attract and retain employees by helping them save for retirement.

 

1 The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. We are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.

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