If you have a small to medium-sized business, you may worry that you aren’t large enough to offer a retirement plan to your employees. We’re here to say that you can. With Benefit Provider’s Multiple Employer 401(k) (MEP) Plan, companies of any size can provide this benefit and offer their employees the protection and costs of a bigger plan.
What is a Multiple Employer 401(k) Plan?
A Multiple Employer Plan (MEP) is a retirement savings plan that joins two or more unrelated employers together that don’t have the resources individually, to enable them to offer their employees a tax-advantaged retirement savings plan. Each individual company’s plans are separate and individual.
A MEP run by an entity known as the MEP sponsor, which is responsible for administrative duties for the plan. Through the MEP, Benefit Providers can minimize the tax implications of providing their employees with certain types of benefits. Benefit Providers/ECCA Payroll Services is the trustee of the MEP, and carries the responsibility of managing the plan, with an independent third party fiduciary to provide extra security.
Benefits to You of your Multiple Employer 401(k) Plan
Truly Affordable 401(k) Plan, Year After Year
We only charge a low $890 annual administration fee (plus a one-time $600 setup fee), and with that, you receive all the benefits of a 401(k) plan. Plus, if you use our ECCA Payroll Services or any other services provided by Benefit Providers , you also receive a 10% multi-services discount, making the annual administration fee $800!
Another benefit of the MEP is that it must be audited every year, which keeps your accounting accurate. Your MEP administrator/sponsor, like Benefit Providers, takes on the responsibility of doing it right, thus taking that burden off your shoulders.
Take Advantage of the Multi-Year IRS Tax Credit
Take advantage of the IRS tax credit that can offset 50% of the total your cost of your MEP (using a 3-year average), up to a maximum of $500 each year for 3 years. This applies to most plans as a tax credit for some of the ordinary and necessary costs of starting a qualified plan. Contact Benefit Providers at 703-370-2226 or firstname.lastname@example.org to see how you can qualify for this tax credit.
Your Employees Have the Tools at Their Fingertips
The Benefit Providers’ 401(k) plan is online, offering your employees 24/7 access to their accounts. In addition, we provide knowledgeable customer service specialists who can provide quick answers if you need assistance.
Flexibility and Customization
Each company’s plan within the MEP can have its own customized options available, and everyone can have their plan based on their needs. It is not one-size-fits-all. Using QuickBooks, we can integrate your plan into your existing payroll services or software.
While the MEP is designed for small 401(k) plans, Benefit Provider has solutions for the medium-asset-sized plans as well. Look for new benefits in 2021!
401(k) Retirement Plans from Benefit Providers
Since 1998, Benefit Providers has been providing benefit administration and benefit services. “I work with the business owner to create a retirement plan with the best terms,” said Joel Bernstein, CEO of Payroll Benefits/ECCA Payroll Services. “Most employers we speak with are unaware of what options are available to them, and how these options can change over time. We can determine whether it is worth it for the employer to have a 401(k) plan based on the percentage of employee participation and contributions, and come up with a strategy to make it available.”
At Benefit Providers/ECCA Payroll Services, we are experts in Retirement Plans, Benefits Administration, HR and Payroll Services. We’re here to provide you with the tools to attract and keep valued employees. Contact us today to learn more.