Discover how SMBs can maximize tax credits, reduce compliance complexity, and offer competitive retirement benefits with PrestigePEO.
If you’re a small or medium-sized business (SMB) owner, you’re likely juggling multiple priorities—from managing day-to-day operations to ensuring your team feels valued and supported. But when offering competitive retirement benefits, the SECURE 2.0 Act has opened up significant opportunities many businesses overlook.
This article will show how you can take full advantage of the tax credits and incentives provided by SECURE 2.0, making it easier and more affordable to support your employees’ financial futures. You’ll also learn how PrestigePEO can simplify the process, ensuring your business maximizes these benefits while complying with complex regulations.
What you’ll learn:
- The basics of the SECURE 2.0 Act and how it impacts SMBs.
- Key tax credits are available to help offset the costs of offering retirement plans.
- How PrestigePEO supports businesses in navigating compliance, maximizing savings, and creating tailored retirement solutions.
With PrestigePEO by your side, navigating the SECURE 2.0 Act becomes stress-free, allowing you to focus on growing your business while delivering exceptional benefits to your team. Read on to discover how to turn these incentives into tangible savings and a stronger workforce.
Understanding the SECURE Act
The SECURE Act—short for Setting Every Community Up for Retirement Enhancement—is designed to make it easier and more affordable for small and medium-sized businesses (SMBs) to offer retirement benefits.
It started with SECURE 1.0 in 2019, introducing new tax credits to encourage businesses to offer 401(k) plans. On December 29, 2022, the SECURE 2.0 Act took things further by adding bigger incentives and simplifying the rules, making retirement plans even more accessible.
Here’s what’s in it for your business:
- Significant tax credits: SECURE 2.0 offers up to $5,000 in credits for creating a new retirement plan, plus additional credits for auto-enrollment and employer contributions.
- Support for SMBs: The legislation is tailored to help businesses with 100 or fewer employees reduce the cost and complexity of offering retirement plans.
These incentives are a win-win—they make it easier for you to support your employees’ financial futures while saving your business money.
Navigating tax credits and compliance requirements might feel overwhelming, but that’s where a trusted partner like PrestigePEO can make a difference. From ensuring you maximize your savings to managing the setup and ongoing administration of your plan, the right support makes it simple to offer valuable benefits to your team without extra stress.
How PrestigePEO helps with SECURE 2.0 Act provisions
Navigating the SECURE 2.0 Act can be complicated, but PrestigePEO makes it simple for small and medium-sized businesses (SMBs) to take full advantage of its tax credits and benefits. Here’s how we can help:
Maximize tax credits
PrestigePEO ensures your business qualifies for all available SECURE 2.0 tax credits, including:
- Establishment fee tax credit: We assist in setting up new retirement plans and calculating credits to offset costs, ensuring your business gets up to $5,000 annually
- Auto-enrollment tax credit: Our team simplifies implementing auto-enrollment features, securing up to $500 annually for three years.
- Employer contribution tax credit: We help you maximize this credit by managing contributions to meet eligibility requirements, saving your business thousands of dollars.
Simplify compliance and administration
Keeping up with compliance requirements is essential to avoid penalties and stay eligible for tax credits. PrestigePEO handles:
- Ongoing compliance: We track regulatory updates and ensure your retirement plan meets federal standards, like those in SECURE 2.0.
- Plan administration: From payroll deductions to contribution tracking, we handle the day-to-day tasks that keep your plan running smoothly.
Minimize employer risk
PrestigePEO acts as your partner in reducing risk by handling fiduciary responsibilities, such as:
- Filing required documents like Form 5500.
- Ensuring retirement plans comply with Employee Retirement Income Security Act (ERISA) regulations.
- Coordinating independent audits to maintain transparency.
Deliver tailored retirement solutions
We don’t just manage the basics—we offer flexible plan design options through our Multiple Employer 401(k) Plan (MEP). This allows you to customize features like safe harbor contributions, eligibility requirements, and vesting schedules to suit your business needs.
The PrestigePEO Approach
SMBs thrive with the right support, especially when navigating complex laws like the SECURE 2.0 Act. PrestigePEO makes this easier by providing expert guidance, handling compliance, and managing the details so you can focus on growing your business.
We offer a full suite of services tailored to your needs:
Employee benefits: Access to premium health, dental, and vision insurance, along with life and disability plans, FSAs, HSAs, and wellness programs.
Retirement planning: Customized plans, streamlined reporting, and reduced fiduciary risk, ensuring your business maximizes SECURE 2.0 tax credits.
HR management: From recruitment and handbooks to workplace safety, we handle the administrative tasks that keep your business running smoothly.
HR consulting: Expert policy guidance, best practices, and technology solutions to support your team.
Payroll services: Accurate payroll processing, tax compliance, and unemployment insurance management.
Workplace compliance: Support with harassment prevention, workers’ compensation claims, and other regulatory requirements.
PrestigePEO is also a company built by brokers, for brokers. This means you can trust us to partner seamlessly with your broker, ensuring your business saves time, money, and stress while preserving existing relationships.
Let PrestigePEO help you simplify HR, stay compliant, and maximize the benefits of the SECURE 2.0 Act.Talk to our team today to get started.
