Wayne County Employee Benefits SIMPLE Plans

Wayne County Employee Benefits SIMPLE Plans Wayne County Employee Benefits SIMPLE Plans

Offering employee benefits can be a challenge for small businesses. Traditional 401k plans can get pricey and many small business employees won’t establish their own IRA savings accounts to protect their own interests. So what can be done to facilitate employee savings at an affordable rate for growing businesses?

There are two great options available: SIMPLE 401k and SIMPLE IRA plans, both options provide the opportunity for employers to contribute to their workers’ savings and allow small businesses to offer great benefits without over exerting themselves.

To qualify for both SIMPLE plans employers must have fewer than 100 employees who have received at least $5,000 in payment within the last year. In both plans all contributions are immediately vested, giving employees direct access to their holdings and funds. Both programs allow employees can make contributions directly or indirectly from their earnings, while you as the employer may make matching contributions.

Here are the differences:


  • Employers are not permitted to maintain any other benefits plans other than the SIMPLE IRA.
  • Any employee who earned at least $5,000 during two preceding years and is expected to earn more than $5,000 in the current year is eligible for participation.
  • Loans against the funds are not permitted, just like any other IRA plan.
  • Employers are allowed to decrease their contribution if things get tight from 3% to greater than 1% for two years in a five year period.

SIMPLE 401k:

  • Employers are able to maintain other benefits plans for employees who are ineligible to participate in the SIMPLE 401k plan.
  • Participation eligibility for the SIMPLE 401(k) plan requires that employees perform service for at least one year and are at least 21 years of age, which can help make sure you are investing in employees who are willing to stick around.
  • Employers may offer loans as a feature of the SIMPLE 401k to employees who may need to borrow from the fund when they are ineligible to receive distributions.
  • Employers contribute matching dollar-for-dollar contributions to the employee’s investment up to the specified amounts.

A well-established Wayne County employee benefits plan can not only allow the employer to claim a tax deduction for their contributions, but also serves as a means of attracting valuable employees to your growing business. At Capital Insurance, we strive to help your business succeed by working with you to create an attractive and affordable employee benefits program to catch those strong workers. We offer Risk Assessment and Management services, as well to keep your budding business on-point and give you a competitive edge. Call our business specialist today at (888) 296-0418 to find out how we can help your start-up grow.