All businesses face a unique challenge when it comes to offering competitive compensation packages. With more limited scale and financial resources than larger employers, it’s not an easy task for them to provide comparable options to current and potential employees. Viable retirement and savings plan options have lagged behind extended health plan options for the small business segment. Unable to meet the minimum cash flow requirements (typically $100,000 or more), small companies were either priced out of the market entirely, or had to resort to admin-heavy extensions of individual plans for their members.
But those days are quickly becoming a distant memory. The market has changed with the introduction of plan designs that now cater to small companies. To participate, a small company now only needs a minimum of two or three employees and a minimum of $10,000 in cash flow.
There are a number of features that make an employer sponsored savings program an excellent addition to your total compensation offering:
- Both Group Registered Retirement Savings Plan and Tax-Free Savings Account can be included – they are highly effective ways for employees to save
- Depending on the situation, RRSP and Deferred-Profit Sharing Plan combinations are available
- Branded funds from top investment managers, with lower fees than comparable retail fund management fees
- Access to financial tools and services for your employees
- Hassle-free administration, record-keeping and reporting are handled for you
There are no employer costs other than any matching contributions an employer may elect to make on behalf of employees. A retirement or savings plan can be an excellent addition to an employer’s total compensation offering. They provide employers with an easy, tax-effective plan, and their employees with a cost-effective way to save for their futures.