In 2017, 35% of private sector workers did not have access to a retirement plan.  For small businesses, which employ 48% of American workers, that number is significantly higher.  There are two primary reasons for this: 1) the cost to implement and maintain a retirement plan, and 2) the time required to administer the plan in accordance with federal regulations.

 One solution is the multi-employer plan (MEP), which allows small businesses to group together into one plan, thus sharing the costs and administrative burden.  However, regulations have had restrictions that require the small businesses in the MEP to have some sort of connection, such as a common profession, such as medical, dental or legal.  Now a recent Executive Order signed by President Trump would allow unrelated small businesses to group together to form an MEP.  The next step will be legislation to modify tax laws and Department of Labor regulations and the timing and details of that is still to be determined, but there seems to be a growing impetus to provide more options for workers to increase their retirement savings so this looks to be a positive for small businesses and their employees.

 However, if you are a small business looking for a cost effective option to implement a 401k plan that will not be a time consuming administrative burden, Total Team Solutions (“TTS”) can already provide a solution.  TTS is a full service human resource outsourcing that already offers an MEP to small businesses and the only connection required is that you become a payroll client.  Furthermore, it costs nothing to join our 401(k) plan and we handle all of the administrative and fiduciary task.  So why wait for this new legislation?  Contact John Morlock of Total Team Solutions now and you can have a new 401(k) plan in place for 2019. (jmorlock@ttspro.com or 800-836-9678, ext.5)

ABOUT TTS – Total Team Solutions is a full service human resource outsourcing (HRO) firm providing payroll, benefit administration and human resource compliance and advisory services to small businesses.  Founded in 1988 as a Professional Employer Organization in New York, we have expanded both geographically and our service offerings in our 30 years of operations.  Our goal is always to provide our customers a better service at a competitive price and will continue to do so for at least another 30 years!