Employment Relationship

In the employment relationship section of the handbook, the company explains the hiring policy and preferences for education, experience, and other abilities to perform the duties of the company. In some situations, other criteria may affect the ability to be employed. The handbook should explain how the company identifies the best employees to fit the mission of the company. In addition this section should explain if there is an employment at will issue, a procedure to terminate such as notice etc. In some situations there may be some legal issues in reference to client matters or proper transfer of information upon beginning or ending the relationship. This usually exists with professionally licensed organizations (medical, legal and accounting). Finally, the issue of Exempt and Non-Exempt status of an employee should be discussed in the handbook. The employee should understand his/her status under the Fair Labor Standards Act.

Simple Retirement Plan – Section 408(p)

Simple Retirement Plan

There are several different retirement plans available to the small business owner.  But no plan offers so many advantages to small business as the Simple retirement plan.  The positive attributes include: 1) Easiest to understand, 2) Least amount of paperwork, 3) No compliance reporting and 4) Plenty of flexibility.  If you are in business and have less than 25 employees, this is your best option to include a great benefit for your employees.  This article describes this form of a retirement plan and Section 408 of the Internal Revenue Code, identifies the advantages, and concludes with a comprehensive example.  In addition, I explain how to fill out the proper document to begin the plan.

This is a plan within an allowed set of plans under Section 408 of the Internal Revenue Code.  All of us have heard of Section 401(k) plan.  The Internal Revenue Code dedicates Sections 401 through 408 to codifying retirement plans.  Within Section 408 are the easier to understand retirement plans.  They include Simplified Employee Plans (SEPs), Salary Reduction Simplified Employee Plans (SARSEPs) and the Savings Incentive Match Plan for Employees (SIMPLE).  Section 408(p) addresses the SIMPLE.

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