A pension plan is one of the most important fringe benefits an employer can offer to its employees. Most employers believe that jobseekers and employees are primarily driven by compensation and other workplace benefits and they often forget that employees also consider the level of long term financial stability when looking for and accepting job offers. A pension plan is one that ensures financial security even after retirement and having one is a smart way of attracting and taking care of one of your most important assets- your employees. It is a form of deferred pay that can secure an employee’s decision to work for your organization or even stay in it. Therefore, if you don’t already have a pension plan set up for your employees, here are some reasons why you should reconsider; Go here https://www.superaudits.com.au/ for more information about smsf audit.
Reduce your tax bill
Let’s all admit it, taxes are a burden. But what if setting up a retirement plan helped you reduce your tax bill? Sounds too good to be true? Well, it isn’t. Businesses with retirement plans get a tax deduction when they contribute to their employees’ retirement funds. It is a way of encouraging organizations to set up retirement savings accounts by allowing businesses to reduce its tax burden by deducting its annual contributions to its employee retirement plan from income taxes. However, to ensure smooth implementation of your company’s pension plan, it’s important that you conduct an annual superannuation audit to ensure compliance with superannuation regulations. Creating a retirement plan is a great of rewarding your employees for their service while reducing the tax bill of your business.
Retaining the best talent
Employees might be more flexible with the benefits offered at the start of their career but with time, they tend to contemplate on the level of financial stability offered by their job. Employees will look for positions or organizations that offer them with a stable retirement plan if they aren’t already being offered one. A pension plan is an important, yet rare, fringe benefit that all employees appreciate as it’s a way to make sure that they can live comfortably after retirement. Most employers consider pension plans to be too expensive and difficult to maintain but, not having a pension plan can be a contributing factor to high employee turnover rates. Not every organization offers a pension plan but in doing so, you will stand out as an employer and be able to attract and secure the best talent in the industry.
The payment from a pension fund is a guaranteed one as compared to a 401k which is dependent on the stock market. The pension plan is formulated based on the person’s average salary and the number of years he/she has worked at the company and is therefore a safe income stream for all your employees. The company carries the responsibility of setting aside money for each employee’s pension plan and when an employee retires from work, he/she receives the promised amount.