How much could a 401(k) match cost your business?

An employer match allows you to contribute to employee 401(k) plans. Match programs can help bolster your recruiting efforts and provide significant tax advantages.

Fill out your information to see how much an employer match could cost.

34%
Your employer match will be:
$0.00 per year or $0.00 per pay period
SMB employees say the #1 reason they started saving for retirement is because their employer offered a benefit
79% of employees prefer new or additional benefits over a pay raise
Human Interest can help boost your hiring and retain better employees at your company
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What are the benefits of an employer match?

Most employers match a portion of their employee’s contributions. In fact, 75% of all Human Interest plans offer an employer match*. As this implies, offering an employer match may help you stay competitive when recruiting and retaining employees.

Not only can an employer match help you find (and keep) good employees, it may also provide significant tax advantages. Employer contributions may be deducted from your employer federal income tax returns (as long as they don’t exceed a certain amount).

How Human Interest can help

Technology has helped streamlined 401(k) plan administration. Rather than having to worry about the nuts and bolts of plans, Human Interest can help business owners like you reduce your administrative burden—no matter how much of an employer match you offer. Spend less time on back-end work and more time on running your business.

Employer 401(k) match types

There are numerous match types businesses may offer. Of all Human Interest plans, here are the most common formulas:

  • 31% of plans: Single-tier match formula* (e.g., $1.00 per dollar on the first 4% of pay)

  • 15% of plans: Multi-tier match formula* (e.g., $1.00 per dollar on the first 3% of pay; $0.50 per dollar on the next 2% of pay)

What’s an average employer match?

This question is difficult to answer, as businesses have their own motivations for providing different match types. At Human Interest, however, 42% of total plans that provide a match offer $1.00 per dollar on the first 4% to their employees*.

Want to learn more about offering an employer match?

Disclosures

*As of 1/3/22, according to Human Interest data, 2022.