Broker Blog

Find out what you can do as a broker to further support your business clients in implementing retirement plans and claiming SECURE 2.0 tax credits. Key takeaways: SECURE 2.0 offers significant tax credits for small businesses implementing retirement plans. Brokers play a crucial role in guiding clients on eligibility, compliance and plan design. Partnering with a PEO provides enhanced back-office support and access to premium benefits. As a benefits broker, you can help small businesses unlock tax savings and improve employee retirement benefits via the SECURE 2.0 Act. Signed into law in 2022, this legislation has brought a host of opportunities for employers to benefiting from valuable tax credits while helping their employees prepare for retirement.  But navigating these changes can be complicated; that’s where benefits brokers step in as trusted advisors. Here, we’ll cover the basics of SECURE 2.0 tax credits and how you can help your clients take advantage of them. How SECURE 2.0 Helps Employers Maximize Savings The SECURE 2.0 Act builds on the original SECURE Act of 2019, introducing provisions to make retirement savings more accessible and equitable. For small businesses, one of the most compelling updates is the expansion of tax credits for retirement plan implementation.  Employers can now recoup a significant portion of the startup costs for offering 401(k) or SIMPLE (Savings Incentive Match Plan for Employees) IRA plans. Here are some other highlights: Enhanced startup credit: Employers with 50 or fewer employees can claim up to 100% of administrative costs, capped at $5,000 annually, for the first three years of a new plan. Employer contribution credit: An additional credit is available for contributions made to employee accounts, up to $1,000 per employee for smaller businesses, phased out gradually as businesses grow. Automatic enrollment push: SECURE 2.0 incentivizes automatic enrollment in retirement plans, increasing employee motivation to save. Benefits brokers can first help employees by understanding what changed with SECURE 2.0 and how they can take advantage of new tax breaks. Acting as a trusted advisor requires understanding the laws and best practices for businesses to increase tax savings. How Benefits Brokers Can Increase Value for Clients Benefits brokers play a critical role in translating these legislative changes into actionable strategies for employers. Here are ways you can help maximize the impact of SECURE 2.0 tax credits: 1. Educate Employers on Eligibility Many businesses may not be aware of these expanded tax credits, or they might assume they don’t qualify. You’re uniquely positioned to clarify eligibility criteria and identify which credits align with the employer’s current or planned employee benefits offerings. 2. Design Cost-Effective Retirement Plan Navigating retirement plan options can be daunting, especially for businesses starting from scratch with limited budgets. Brokers help businesses tailor solutions that align with budget constraints while maximizing employee engagement, ensuring they are fully leveraging available retirement tax credits. 3. Streamline Implementation and Compliance From selecting plan providers to ensuring compliance with IRS and Department of Labor regulations, simplify the retirement plan setup process for your business clients. [...]

As the world becomes more complex every day with new technology and regulations, it remains a challenge for businesses of all sizes to navigate the compliance landscape, whether at the state or federal level. Benefits brokers are tasked with helping clients navigate these challenges, but it’s not always easy…

As the world becomes more complex every day with new technology and regulations, it remains a challenge for businesses of all sizes to navigate the compliance landscape, whether at the state or federal level. Benefits brokers are tasked with helping clients navigate these challenges, but it’s not always easy…

One of your ongoing goals as a broker is establishing long-term client relationships. These more meaningful relationships help you sustain and grow your practice. And the most effective way to do that is to provide personalized service. Your small and medium-sized business (SMB) clients want to feel understood…

There may be many Human Resources services your small and medium-sized business (SMB) clients would be interested in, but don’t currently have. Focus on ways to customize bundled services to cross-sell and upsell. Key takeaways: As a broker, you’re an expert in building trust and identifying your SMB clients’ core needs and…

Businesses are always looking for value. As a broker, you can help them see the importance of key programs and policies like employee wellness and sustainability. Key Takeaways: A broker must stay ahead of the latest HR trends. Businesses need support with these key programs and policies: employee wellness, identity theft training, workplace safety…