Client Spotlight: Setting Up a 401(k) For Your Small Business
Setting up a 401(k) plan can benefit small businesses, regardless of company size or industry. The partners at Epand, Boyle and Company, an accounting firm serving the Long Island and New York City area since 1987, have seen the benefits firsthand since they established a plan 17 years ago, and shared their story during a recent client interview.
Epand, Boyle and Company has eight employees who provide accounting services to small businesses and individuals. The team fluctuates in size, particularly during tax season. Tracey Boehm, CPA, senior accountant, and 20-year employee at the firm, gave us an inside look at the company’s long-standing 401(k) retirement plan.
How did your organization decide to add a 401(k) retirement plan to your employee benefits?
"As a company, we were already using payroll services through Paychex. Because of the services that we provide, we are also referral partners. Our two founding partners were looking for ways to attract and retain top talent. Our team can fluctuate in size so we needed a flexible plan that would be affordable and make the firm attractive to potential employees."
How long have you had your plan?
"The retirement plan was set up about 17 years ago. We already had a strong relationship with Paychex, so it was a natural fit to partner with them for a 401(k) as well."
What is the main benefit of offering a 401(k) plan to your organization?
"The retirement plan is very well managed. Also, many of our new hires are surprised that a small firm offers a 401(k) plan with so many investment choices. A good sign of the satisfaction with the plan is that every employee in our firm participates, and many of our former employees have retained the plan."
What is a key learning you gained from your experience?
"The earlier you start, the better. The more your employees put away in retirement savings, the better off they are in the long run. I suggest finding a plan with a broad range of investment options so employees can choose the right options based on their personal goals."
What advice would you give another business owner who is considering this service?
"Establishing a 401(k) plan is definitely worthwhile, even for a small company like ours. The entire team and company benefit. It requires very little work to maintain, making it worry-free for everyone involved. My favorite aspect is the great support they provide. I always prefer to speak to a live human being, so I feel confident in the support.
"In our business, clients are always asking for advice about things like payroll and retirement resources. Our 17 years with the Paychex 401(k) plan have been positive and with the ease of administration, we believe we can recommend them with confidence."
If you think your business and employees could benefit from setting up a 401(k) plan, take a look at how to go about choosing a plan that fits your needs.