Originally published on SmallBizMke.com. Here’s news that small business owners can get really excited about—ways to provide a great benefit to employees with very little effort. And, for all employees who sign up, the small business employers save money, too.
Let’s be clear—this isn’t something too good to be true. It’s the real deal. Yet very few business owners are aware of golden opportunities that exist right now under the Employee Retirement Income Security Act (ERISA). Complicated federal tax laws and lingo, along with inertia, are the biggest barriers between small businesses and what is, in essence, tax-reducing, long-term investments for employees and cost-saving, growth-enhancing payroll reductions for employers.
To eliminate the barriers and spread the good word about health accounts and retirement plans, to enlighten, motivate and empower other small business owners, to help them—and their employees—grow their savings, Glendale-based SASI, Inc., works diligently as a dedicated team of five.
Ranking among the nation’s foremost third-party administrators and record keepers, SASI provides personalized service to all of their small business clients. “When we say, ‘small business,’ we mean small business,” says Vice President William (Bill) Brown. As an example, he added they have developed some plans with just one person in them.
He also provided an example of how easily employers and their staff can save 7.5% on payroll taxes with a Flexible Savings Account (FSA). If an employee defers $1,000 of their yearly income into an FSA, they save $75 per year—and so does the employer on their payroll tax. Keep in mind that the cap is $2,750 per year, so the potential savings for both parties is even greater. Employees can also defer up to $5,000 for dependent care. Multiply that savings by the number of employees who are in the plan and it’s easy to see how the number adds up to substantial savings for the business owner.
Amazingly, many employers are unaware of this opportunity which Bill terms a “possible profit center.” They’re equally unaware of (or perhaps intimidated by) other accounts and plans that provide savings, as well; that includes Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), Transportation Programs, Premium Only Plans (POPs) and 401(k) Plans.
Due to the complex and, to many, dry subject matter, it can be difficult to explain to some people what SASI does. There’s so much information available that it’s daunting, much like being dropped into the middle of Home Depot not knowing what’s needed and with no one around to ask. Most of the business SASI gets is through word of mouth. That’s because they’ve developed a reputation within their industry for (1) patiently educating people on the benefits in layperson’s terms; (2) developing plans to accomplish each employer’s unique goals; (3) providing exceptional customer care.
Bill stated, “People call and ask, ‘Can you put a plan in place for us?’” We pride ourselves on very personalized service. We’re not cookie cutters. When any of our phones ring, a person always answers [Christene, Brian, Chrissy, Debbie, Bill]. Our founder insisted on very attentive care.”
Receive some of that personal attention yourself when you call SASI to discuss a plan for your small business and its employees. With 2019 ending soon, this is a great time to start a discussion and get something in place as soon as possible for 2020. During the holiday craziness, won’t it be nice to know that you’ve planned for some steadiness in the future? If you invest time right now to talk to SASI President Debbie Kuras and Vice President Bill Brown, it will pay dividends for the rest of your life. Call 800-752-3539.
Quick Tip for You from Bill Brown at SASI:
Name beneficiaries for your IRA and 401(k) using beneficiary designations obtained from the plans themselves. A will carries no weight in this arena, so don’t use it to designate plan beneficiaries.
