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Summary > Summary - Pg. 114

Staffing Up 114 · Every employee should be on an "at will basis" and should sign an employment agreement before starting work. · Get clear title to all IP by having employees and independent contractors sign confiden-tiality/ assignment of invention agreements. · Don't pretend your employees are independent contractors. · Talk to a good insurance broker about applicable coverage. · Put some thought into your organizational structure, both as it is and how you want it to be in three years. Draw up an organization chart that fits that vision. A comparison of major retirement options and theirkey features, compiled by the Pension and Wel- fareBenefits Administration Key Advantage SEP-IRA Payroll Deduction IRA SIMPLE-IRA 401(k) Profit Sharing Defined Benefit Money Purchase Plan Easy to set up and maintain. Easy to set up and maintain. Salary reduction plan with little administrative paperwork. Permits employee to contribute more than in other options. Permits employer to create large account balances for employees. Provides a fixed, pre-established benefit for employees. Permits employer to make a larger contribution than through other Defined Contribution Plans. Employers Who Can Provide This Option SEP-IRA Payroll Deduction IRA SIMPLE-IRA 401(k) Profit Sharing Defined Benefit Money Purchase Plan Any business that does not currently maintain any other retirement plan. Any business with one or more employees. Any business with 100 or fewer employees that does not currently maintain any other retirement plan. Any business with one or more employees. Any business with one or more employees. Any business with one or more employees. Any business with one or more employees. Employer's Responsibilities SEP-IRA Payroll De- duction IRA SIMPLE-IRA 401(k) Set up plan by completing IRS Form 5305-SEP. No employer tax fil-ing required. Set up arrangements for employees to make payroll deduction con-tributions.Transmit contributions for employees to funding vehicle. No employer tax filing required. Set up by completing IRS F5304-SIMPLE or 5305-SIMPLE. No employer tax filing required. Bank or financial institution does most of the paperwork. There is no model form to establish a plan. Advice from a financial institution or employee benefit advisor would be necessary. Annual filing of IRS Form 5500 required. Also requires special testing to ensure plan does not discriminate in favor of highly compensated employees. There is no model form to establish a plan. Advice from a financial institution or employee benefit advisor would be necessary. Annual filing of IRS Form 5500 is required. There is no model form to establish a plan. Advice from a financial institution or employee benefit advisor would be necessary. Annual filing of IRS Form 5500. Actuary must determine funding obligations. There is no model form to establish a plan. Advice from a financial institution or employee benefit advisor would be necessary. Annual filing of IRS Form 5500 is required. Profit Shar- ing Defined Ben- efit Money Pur- chase Plan Funding Responsibility SEP-IRA Employer contributions only.