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NASE NASE

MICRO-BUSINESS RESEARCH

NASE Survey Results

Topics that Are Important to Small-Business Owners

Here’s a snapshot of how micro-business owners feel about the hot topics of the day.

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Encouraging Retirement Savings through Automatic IRAs (Feb 2008)

Respondents: 79

Many micro-businesses throughout the country do not have a retirement plan set up through their business. This has left many business owners and employees without retirement savings. Congress is proposing to address this problem by requiring businesses without retirement plans for employees to allow their workers to automatically divert part of their paycheck towards an “automatic IRA” account. The proposal would provide a temporary tax credit to these employers to help offset the paperwork and regulatory costs of establishing the new program, and it would not require employers to contribute funds or administrate the account. Tell us what you think of this new proposal.
 
1. Do you currently offer a retirement plan of any type through your business?
12% Yes, presently offer a retirement plan for myself AND/OR my employees
11% No, but plan to offer in the next 12 months
02% No, but did offer in the past
74% No
0% Do Not Know
 
2. How do you currently administer your payroll?
06% I outsource our payroll to a payroll administration company which automates our payroll, allowing for direct deposit
09% I outsource our payroll administration, however our payroll is not automated
09% I have a full-time or part-time employee which handles payroll for my company
77% As the owner, I handle payroll for my company by hand
 
3. As a business owner, would you support a requirement that would mandate you provide an automatic payroll deduction for contributions to an Individual Retirement Account (IRA) for your employees?
27% Yes
73% No
 
4. How high would a tax credit have to be in order to offset the expenses of implementing an automatic payroll deduction for contributions to an IRA?
12% Less than $10 per employee
11% $10 per employee
17% $25 per employee
16% $50 per employee
43% More than $50 per employee
 
5. How would you assess this proposal’s effect on your administrative burden?
07% It would slightly reduce my administrative burden
05% It would greatly reduce my administrative burden
40% I don’t think it would have much effect on my business
27% It would slightly increase my administrative burden
21% It would greatly increase my administrative burden

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