401(k) Employer Match & Tax Credit Calculator
A 401(k) employer match can help boost recruitment and retention efforts and provide tax advantages. Calculate your 401(k) employer match cost and discover how SECURE 2.0 tax credits of up to $1,000/employee can offset expenses. Use this tool to help figure out how much an employer match could cost your business.
Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Employer match cost | $70,000.00 | $70,000.00 | $70,000.00 |
| Potential tax credits | -$31,500.00 | -$31,500.00 | -$23,625.00 |
| Total cost | $38,500.00 | $38,500.00 | $46,375.00 |
Hire faster & lower employee attrition
On average, an employee with a 401(k) has a 40% lower chance of quitting by the end of their first year.
May be added as part of a safe harbor plan provision
Reduce admin work by automatically passing some key IRS tests, while allowing plan participants to max out contributions.
Try it for the first plan year
If you decide to reduce or remove your match, you can easily do so since Human Interest never charges fees for plan amendments.
Human Interest can help boost your hiring and retain better employees at your company
An employer match may provide tax advantages
Employer contributions may be deducted from your employer federal income tax returns (as long as they don’t exceed a certain amount).
SECURE Act 2.0 added an employer match tax credit. Small businesses offering a new 401(k) with a match may qualify for tax credits of up to $1,000 per employee, per year for the first five years of the plan.¹
You run your business. We run your plan.
Automate plan administration, keep payroll in sync, and reduce compliance risks without taking on a second job. We handle the back-end work so you can spend less time on administration and stay focused on growing your business.
Who offers an employer match?
Most employers match a portion of their employee’s contributions. In fact, only 5% of Human Interest plans did not offer a company match.2
As this implies, offering an employer match may help you stay competitive when recruiting and retaining employees.
Want to learn more about offering an employer match?
Use our Plan Cost Calculator to learn how other SECURE Act 2.0 tax incentives may help you start a Human Interest 401(k) plan.
Check out our FAQs to learn 10 important things employers should know about offering a match.
Click here to find the best service level for your business.