These Tax Breaks Are Spurring More Small Businesses to Offer 401k Plans to Employees

More Small Businesses are adding 401k offerings to their employee benefits packages, in part because of the tax saving that are available as a result of the SECURE Act, which went into effect in the last days of 2022.

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To qualify for this tax credit, a company must have at least one employee (not including the owner of the business) who makes less than $135,000 a year. The size of the tax credit will be calculated based on the total number of employees whose wages fall below that minimum salary threshold, with an annual cap of $5,000 total tax credit for a company per year.

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You can read more about the SECURE Act and the potential implications for your small business here.