Before we dive into plan types and fees, let’s get clear on one thing: a retirement plan is a great benefit to offer. But more than that, it’s a message to your team. It says: We’re invested in your future here. That message carries real weight — especially for employees who want to build a long-term career working with a business like yours. Employee benefits can support your talent retention efforts. A retirement plan helps employees save in a tax-advantaged account. Contributions come out of their paycheck before taxes. That means they save more, pay less in taxes now, and build wealth over time. Pre-tax contributions lower their taxable income right away. Money grows through investments over time. Employer matching adds direct financial value on top of their salary. When the deduction happens automatically through payroll, employees don’t have to think about it. That makes it easier for them to save and invest in their futures. This post walks you through your main options as an employer, what to consider throughout the process, and how to find the right fit for your team. Compliance Update: New York’s Secure Choice Mandate New York State’s Secure Choice Savings Program requires employers with 10 or more employees to offer a retirement savings option. If you don’t have a qualified plan in place, your business will be enrolled in the state’s program by the end of this summer. Enrolling in the state program doesn’t eliminate your administrative responsibility. As an employer you will still have to: Manage your payroll deductions. Coordinate remittances to the state. Handle ongoing administration as employees enroll or leave. Whether you develop your own plan or establish a Secure Choice plan, you’re administering your retirement program. The question is whether you’re investing in a solution that helps your business — better talent attraction, stronger retention, getting employees the support they want — or just checking a compliance box. The Main Retirement Plan Options for Small Businesses Not every plan works the same way. Here’s a plain-language breakdown of the most common options and who they’re best suited for. SIMPLE IRA Designed for businesses with fewer than 100 employees. Lower administrative burden than a 401(k). Both employees and employers contribute. Contribution limits are lower than a traditional 401(k). A solid starting point for businesses offering retirement benefits for the first time. 401(k) More flexibility and higher contribution limits than a SIMPLE IRA. Requires more oversight — including annual non-discrimination testing. Plans with more than 100 participants require an annual audit. Customizable with employer match options and vesting schedules. 403(b) Built specifically for nonprofit organizations. Very similar to a 401(k) in contribution limits and structure. Fee structures are comparable to 401(k) plans. If you run a nonprofit, this is typically your best-fit option. Multiple Employer Plan (MEP) Through a PEO Small businesses pool together to access the scale and pricing of a large plan. The PEO takes on the fiduciary and compliance responsibilities of plan management. Includes non-discrimination testing, annual filings, and audit management. Lower fund fees mean your employees keep more of what they save. ESC offers a multiple-employer 401(k) plan as part of its broader HR and benefits services — a way to give small businesses access to enterprise-level retirement benefits without the administrative burden. What Retirement Plans Actually Cost Employee benefits are an investment for a business to make. If you know and understand the costs, that’s key to making the educated decision for your business. Initial costs might include plan design and documentation, filing setup, and any related consulting or advisory fees. Some providers will waive setup fees, but others may charge hundreds or thousands in setup fees depending on the complexity of the plan. Many plans don’t charge a visible upfront fee. But the costs show up elsewhere — meaning they can quietly eat into your employees’ retirement savings over time. One best practice to consider: Look for a combination of low administrative fees and low fund-level fees. Fund fees affect your employees directly. Lower fees mean they keep more of their money — which is the whole point. Talk with your financial advisor about your unique plan for more advice on how to best structure your plan to maximize employees’ earnings. Putting More Money in Your Employees’ Pockets The best retirement plan is one your employees benefit from. That means low fees, simple enrollment, and a structure that helps them save consistently. When you approach retirement benefits with that mindset — asking “how does this work for my team?” — you’re making a tangible investment in the people who show up every day. If you’re unsure which plan fits your team or want to understand your options, our team at Employer Services Corporation is happy to walk you through those options. As a Professional Employer Organization (PEO), our team at ESC offers and administers a multi-employer retirement plan for small businesses who want to access lower fees and greater benefits that come with a larger plan. Contact us if you’d like to learn more.