GLENVIEW, Ill., Sept. 7, 2016 /PRNewswire/ -- The majority of small business owners (66%) do not offer a 401(k) plan and 42% of those not offering it don't see the value in it, according to the August 2016 SurePayroll Small Business Scorecard®.
Thirty-five percent of those not offering a plan said the fees are too expensive, and 23% said they don't know how to manage a 401(k).
The small business owners that do offer a 401(k) said they do so to build retirement savings for themselves and their employees, with just 5% saying they offer it to attract new employees and 6% saying they offer it for tax breaks.
In total, 28% are offering a plan and another 6% plan to add one soon, the Scorecard survey found.
"There needs to be more education for small business owners about the tax benefits and the long-term growth potential of investing in a 401(k) plan," said SurePayroll General Manager Andy Roe. "The fees really are minimal when you consider the benefits to you and your employees. The plans available today make it very easy to manage, and your payroll provider can help guide you. It's a growth opportunity for business owners."
The deadline for setting up a Safe Harbor 401(k), which offers small business owners a simplified way to manage a 401(k) plan, is October 1st.
How do small business owners plan to save for retirement? Find out on the SurePayroll Blog.
SurePayroll is the trusted provider of easy online payroll services to small businesses nationwide. Whether a business has 1, 10, or 100 employees, SurePayroll delivers peace of mind by combining innovative, industry-leading technology and personalized support from an award-winning, U.S.-based customer care team. SurePayroll also provides private-label and co-branded services for accountants and banking partners as well as offering efficient online solutions for managing 401(k) plans, health insurance, workers' compensation, employee screening and more. SurePayroll is a wholly owned subsidiary of Paychex. For more information, please visit www.SurePayroll.com. Follow us on Twitter – Circle us on Google+ – Connect with us on LinkedIn – Like us on Facebook.
Paychex, Inc. (NASDAQ: PAYX) is a leading provider of integrated human capital management solutions for payroll, HR, retirement, and insurance services. By combining its innovative software-as-a-service technology and mobility platform with dedicated, personal service, Paychex empowers small- and medium-sized business owners to focus on the growth and management of their business. Backed by 45 years of industry expertise, Paychex serves approximately 605,000 payroll clients across more than 100 locations and pays one out of every 12 American private sector employees. Learn more about Paychex by visiting www.paychex.com, and stay connected on Twitter and LinkedIn.