We’ve lectured you before on how it’s the human resource department’s responsibility to coach employees on planning for retirement, to use business payroll software to set up their 401(k) plans and track benefits. Hopefully our latest advice won’t fall on deaf ears.
Consider the kind of information that’s typically included on employees’ pay stubs. Address, taxes and how much they’re getting paid, right? If your company’s paycheck does not also have a space for the 401(k) contribution for the pay period, along with the total accrued balance, think about adding it.
It’s easy for cash-strapped employees to view a 401(k) contribution as just money that they can’t use to cut down credit card balances or apply toward a utility bill. But showing how the payments are adding up may make employees more likely to continue saving, rather than cashing out their plan the next time a financial emergency pops up.
What are some other ways payroll software functions can help your employees? Do you regularly talk to workers about how they’re preparing for retirement?
P.S. The federal government recently tweaked the rules regarding how companies can change corporate health plan providers without affecting grandfathered status. Check the Department of Labor’s website for more details.