[…] New Tax Credits and Provisions of the Secure Act Make it Easier to Offer Retirement BenefitsSmall businesses across the country are starting to offer 401(k) plans to their employees, thanks to new tax credits made available by the Setting Every Community Up for Retirement Enhancement (Secure) Act. This legislation became effective on December 29, 2022, making it more appealing for employers. To offer retirement plans and potentially improve retirement outcomes for their employees.According to a Wall Street Journal report, the new tax credits are widely available. Small businesses are utilizing them. In the report, Ronald Ulrich, Vice President of Product Consulting and Compliance at ADP Retirement Services. They quoted as saying that the new legislation makes it more affordable for employers to offer retirement plans.A business must have at least one employee who makes less than $135,000 in 2022, known as a “non-highly compensated” employee, and who is not the business owner to qualify for the tax credit. The number of non-highly compensated employees determines the credit amount, which is capped at $5,000 per year. By year three, business owners could receive a total of $15,000 in tax credits, with the potential to earn $16,500 over three years through automatic enrolment.A three-year tax credit of up to 50% of administrative costs with a $5,000 annual cap was previously available to businesses with fewer than 100 employees. The new law increased this credit for new plans offered by employers with up to 50 employees to 100% costs. Employers can now claim a new credit for matching contributions, which have a maximum limit of $1,000 per eligible employee (earning less than $100,000) or $5,000 in total contributions per year, for a period of five years.The changes can benefit both employers and employees by making it easier for both parties to increase their retirement contributions. Small business owners can save money on taxes while also rewarding their employees for the first time with 401(k) matching.Businesses in California, Oregon, Illinois, Colorado, and other states must either start their own retirement plan. Or enroll their employees in the state’s automated program known as auto-IRAs. States like New York, Maine, and Oregon are planning to implement similar programs this year. 401(k) plans, on the other hand, can be beneficial than IRAs for both the business owner and their employees. Employer-sponsored programs can offer employees a broader range of investment options while also qualifying them for tax breaks.Furthermore, 401(k) plans can provide business owners with greater flexibility and control. Employers have no control over their employees’ IRA contributions or investments. Employers who use 401(k) plans have more flexibility to tailor their particular needs and assist their workforce saving for retirement. This can assist businesses in attracting and retaining top talent, while also improving employees’ financial well-being. Small business owners can provide valuable retirement benefits to their employees. While potentially saving money on taxes by taking advantage of the new tax credits made available by the Secure Act.It’s important to remember that tax laws are incredibly complex, our short blog articles cannot cover all the intricacies of rules. This is why it’s crucial to find an experienced, and highly qualified tax specialist to assist you. Trying to navigate the tax code on your own can lead to missed opportunities and possible risks.Fortunately, there are resources available to help you find the right tax professional for your needs. Utilizing marketplaces like IfindTaxPro, where you can post your project and find the right tax specialist for your unique situation. IfindTaxPro’s platform assures you that you will find a qualified professional who can spot opportunities and risks that you maybe not aware of.For licensed tax professionals who are interested in helping others, IfindTaxPro also offers a marketplace with a full suite of tools to communicate with clients, including compliance calendars, task and message management, and billing. You can also quickly connect with knowledgeable colleagues who can complement your services with the ones you do not provide. Register with IfindTaxPro today to start helping clients and building your practice.  […]