The platform developed by Gusto makes it possible to pay salaries, manage vacations, offer health insurance, track hours worked and now offer retirement plans, all from a single, simple and intuitive tool.
For its part, Guideline has been helping companies offer affordable retirement plans to over a million people for almost ten years, and is already the most popular retirement product on the Gusto platform. By joining forces, the two players offer a single product to manage payroll, health insurance, human resources, time tracking, compliance and retirement benefits, all designed specifically for small businesses.
At least 25 U.S. states have already passed laws requiring employers to offer their own retirement plans, or to enroll their employees in a public automatic retirement savings system. Other reforms are on the table, including new investment opportunities for 401(k) funds, (retirement savings plans offered by American employers. Employees contribute a portion of their pre-tax salary, often supplemented by a company contribution, to build up capital for retirement), which could include private equity.
For small businesses, setting up retirement plans such as 401(k)s is often perceived as too costly and complicated. Yet these benefits are essential: they help attract and retain talent, benefit from tax advantages and improve employees' financial security. A person is 15 times more likely to save for retirement when they have access to a company savings plan. Against this backdrop of an overhaul of retirement plans in the United States, Gusto and Guideline offer a solution perfectly suited to SMEs and their employees, providing them with the capacity to save.
