In 2011, GTM Payroll Services conducted a Nanny Trends Survey regarding employment benefits for nannies, which revealed the most popular benefit nannies did not receive but wanted was a retirement savings plan. As a result, in 2012, GTM introduced a 401(k) Retirement plan for household workers. Now, nannies and other domestic workers have the ability to save for their future, while giving families/employers an excellent way to recruit and retain their best employees.
Key features of this plan include:
Tax-savings: Nannies have the potential for a pre-tax savings via payroll deferral of up to $11,500; those 50+ years old can invest another $2,500 as a catch-up contribution
Flexibility: Nannies have the option to modify deferral amounts
Employer contributions: Family makes a contribution on a dollar for dollar match basis up to 3% of the nanny’s gross pay, which can be used to reward and retain valuable employees
Self-direction of investments: Nannies have the ability to self-direct their investments from a list of monitored mutual funds
Employee support: Nannies have access to professional advisors who provide them with one-on-one advice
Transferability: If a participating nanny changes families, they can roll the money to another qualified retirement plan or individual retirement account (IRA)
How to Enroll:
Families/household employers interested in this plan just need to contact GTM Payroll at (888) 432-7972 or visit www.gtm.com.