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MOST IMPORTANT: Three ways for you to save money Flex Plans Can Save the Employer Thousands of Dollars in Payroll Taxes This is made possible through employee salary reductions. When an employee’s salary is reduced, the company reduces payroll expenses for payroll taxes and Workers Compensation premiums. For a company with 20 employees, a Flexible Compensation Plan could mean $2,000 - $10,000 a year in reduced payroll taxes and expenses! No Increase in Employer Contributions for Employee Benefits Added benefits under the Flexible Compensation Plan are paid for by redirecting employee tax dollars, not by increasing employer contributions. Call The Financial Clinic for assistance in setting up a Flex Plan. 3. SIMPLE Retirement Plans ALL EMPLOYERS, LARGE AND SMALL, CAN OWN RETIREMENT PLANS FOR THEIR EMPLOYEES. THE COSTS ARE MINIMAL AND THE BENEFIT PACKAGE OFFERED TO THE EMPLOYEES BUILDS LOYALTY. The Small Business Job Protection Act of 1996 created an entirely new type of retirement plan called “SIMPLE”, an acronym that stands for “Savings Incentive Match Plan for Employees”. The SIMPLE retirement plan provides many benefits for the employer: The administrative fees are minimal; as the employer, you decide your level of financial participation; the plan is easily understood; and the plan is tax deductible. For the employee: Employee contributions are not currently taxable; employee contributions are made with pre-tax dollars; the employee handles the investment; and the plan remains with the employee after they leave your employment. Both of the above benefit plans, the Flex Plan and the SIMPLE Retirement plan, can be provided to the spouse and children of the owner of a business. This is a wonderful opportunity to start saving for retirement, changing some personal expenses into business expenses before paying income and/or self-employment taxes, and actually putting more money in your pocket and less in Uncle Sam’s! Call for a copy of “Retirement plans for Small Businesses”. This is a simple to understand explanation of all the different retirement plans available to businesses. HGi Financial Services can do all the work involved with the set up of any or all of these plans. Call today (951-681-2784) and start saving money immediately! Increased Employee Morale The employer can increase the employee’s benefit package and the employee enjoys the option of exercising greater control of their benefits.
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