What are the benefits to the employer and the employee of increased participation in retirement plans?© BrainMass Inc. brainmass.com June 3, 2020, 8:05 pm ad1c9bdddf
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1. What are the benefits to the employer and the employee of increased participation in retirement plans?
For the employer, it secures federal tax benefits and related financial gains. Businesses with qualified retirement plans may deduct plan contributions off their taxes as a necessary and ordinary business expense. So in essence, through this tax deduction, the government is subsidizing the employer's qualified plan benefit expenses.
However, attractive retirement plans are also helpful in recruiting and retaining high quality staff. When it comes to attracting and keeping good employees, a firm with a ...
This solutions identifies and explains specific benefits of increased participation in retirement plans to the employer and the employee.