Can a PEO Assist with Deferred Compensation Plans?

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So, you’ve decided that you’d like to provide your employees with a deferred compensation plan. Now you’re just wondering if your PEO can handle that. After all, there’s no sense in bringing in another vendor if all employee management tasks can be managed under one great umbrella of cost-effective and efficient services.

Here’s the good news: PEOs not only minimize the time spent on administration and operating cost, but also provide solutions related to deferred compensation! The bad news is that options may be somewhat limited. Before dismissing the idea though, know that options for individual retirement accounts (IRAs) through your PEO will be plentiful. The reason we say “limited” when referring to deferred compensation plan options is because the general term of “deferred compensation” includes pensions and employee stock options – things PEOs don’t tend to specialize in or offer.

When it comes to retirement plans though, such as 401ks, PEOs offer:

  • Expertise: Trusted advisors to help you proactively manage your employees, and do what’s in your best interest from a tax liability perspective.
  • Risk Management: Help with avoiding compliance violations or tax violations.
  • Purchasing Power: PEOs help optimize your employee benefits by pooling together employees from other companies. This results in much stronger purchasing power than you’d have as a small standalone business and you’ll likely gain attractive retirement plan options!

In conclusion, PEOs provide a team of professional HR and retirement benefits experts to keep up with the ever changing laws and reduce your liability as an employer. If you’re looking for a deferred compensation plan outside of retirement, such as company stock options, you may need to recruit the help of additional professionals. Be sure to ask us for referrals!

Also, note that when shopping for a PEO or alternative service provider you’ll likely receive deferred compensation plan options that vary from one PEO to the next. Our dedicated staff of PEO experts at Employer Solutions Plus can prepare a custom analysis of proposals for you upon request, saving you time, money, and stress!

Call today to take the guesswork out of retirement options and find the perfect service provider for your organization and its employees, whether that perfect fit is a PEO or a standalone service provider! Employer Solutions Plus: 727-698-6207.