Beyond healthcare benefits and paid time off, you may want to consider profit sharing plans for your Fort Smith, AR, small business. This cost-effective retirement plan may help you attract and retain happy and productive employees.
As a direct contribution plan, profit sharing provides direct or indirect payments from the profits of your business. This incentive benefits both you and your employees in three ways.
- Reap Tax Benefits
Not only can a profit sharing plan be an innovative compensation strategy, but it can also be financially beneficial to your business. Contributions can count as tax deductions. Further, money put into the plan is not taxable until it gets distributed during retirement.
- Avoid Fixed Costs
Another incentive to profit sharing plans in Fort Smith, AR, is you are not required to pay a set amount into the plans. Instead, the costs will fluctuate based on the rise and fall of revenues. So, your cost for implementing the plan is smaller during a less profitable year.
- Increase Employee Loyalty
Generally, employees who share earnings from the business they work for have a sense of ownership. As a result, they may become more invested in the success of your small business. Not only are they getting a paycheck, but they also stand to gain from the profits.
Setup a Profit Sharing Plan with a Trusted Financial Advisor
Looking for ways to maximize employee retirement contributions and minimize the financial strain on your business? Profit sharing plans in Fort Smith, AR, are a good option. Contact Dale Brunk, CEBS, AIF at Sitename to learn more about implementing the plan.
Disclaimer:
Securities offered through Avantax Investment Services℠, Member FINRA, SIPC. Investment advisory services offered through Avantax Advisory Services℠.
Insurance services offered through an Avantax affiliated insurance agency.
