A previous post detailed considerations for employee benefits, benefits packages will be different for a self-employed person with no employees. For instance, the federal government’s health care for small businesses, Small Business Health Options Program or SHOP, requires 1-50 full-time employees and the employees cannot be a spouse or family members to qualify. Therefore, the self-employed business owner without full-time employees will have to look to other options for health insurance. Self-employed people can use the individual Health Insurance Marketplace to find health benefits as well as see if you would qualify for additional deductions.
As far as retirement benefits, you may choose to be more creative to finding a retirement plan that suits your needs and investment style. The Internal Revenue Service highlights retirement options for the self-employed. The IRS reviews the key points for simplified pensions, 401 (k) plans, IRA Plans, and other contribution plans such as profit-sharing, money purchase and other plans. Compare different types of plans to understand terminology and basic differences between the plans in one publication here. Also consider reviewing materials available for check out with the Dallas Public Library. Explore the intricacies of retirement plans from experts and learn how to apply sound methodology to selecting investment plans. Falling Short: The coming retirement crisis and what to do about it, The New Rules of Retirement: Strategies for a secure future, and Saving for Retirement Without Living like a Pauper or Winning the Lottery are just a few of the available materials in the Library’s collection that offer insight to retirement benefits and planning.
The Library’s retirement materials available for check out can be placed on hold and sent to your library branch of choice. If you are not a card-carrying member of the Dallas Public Library because you do not live within the City of Dallas, visit your local library ask for a TexShare Card in order to check out up to five Dallas Public Library books from our collection. The exception is for those of you who live in the Town of Addison. All Addison residents are eligible to receive a free Dallas Public Library card, but first visit the Addison Athletic Club to receive a voucher. This voucher can only be redeemed at the Fretz Park Library.
These are a few of the benefits to consider if you have opened a small business. As the CEO, manager, and employee all wrapped in one, you will need to consider what other benefits will keep you motivated and happy to take on the extra work of running your business. Large corporations are vying to lure employees with interesting fringe benefits unlimited time off for family events, game time, gym memberships and even midday surfing—as is the case with Patagonia. While it is difficult to justify not working when there are bills to be paid, remember free time, vacation days and sick leave have been shown to increase productivity and creativity. Need more convincing? Listen to Stefan Sagmeister’s TED Talk to his experience with taking time off.