Posts Tagged ‘CARESAct’

Headline Image_5 steps to create a financial wellness program

Americans are worried about their finances, and it spills over into every aspect of their lives, including their work.  Compounding matters is the financial stress resulting from COVID-19.  Having a comprehensive financial wellness program for your employees is more important than ever.

Why Have a Financial Wellness Program for Your Employees?

A recent survey has found that 78% of American workers are living paycheck-to-paycheck.[1] It’s no wonder so many workers say they’re stressed about finances.

But what does this mean for you, their employer?

Employees stressed about their finances are far more likely to be late to work, absent, sick or distracted and unable to work effectively. According to the Chicago Business Journal, 43% of employees who are distracted by finances spend three or more hours a week at work thinking about financial matters or dealing with them. This equates to 150 hours per employee per year in lost productivity.[2] That’s a bundle of lost money that employers will never recover.

These numbers are causing employers to take notice, and many are establishing financial wellness programs to help.

Read the rest of this entry »

VIDEO: A Quick CARES Act Refresher

July 22nd, 2020 by Jonathan Leidy

 

 

Signed into effect earlier this year, the Coronavirus Aid, Relief and Economic Security (CARES) Act is a robust economic stimulus package designed to help small business owners and hardworking American families during these unprecedented times.

As part of the act, retirement plan participants have been authorized to use their retirement plan savings for emergency financial relief. Specifically, CARES introduces two new distribution options:  Coronavirus Related Distributions (CRDs) and enhanced loan provisions.

As the pandemic wears on, it’s worthwhile for plan sponsors to remain familiar with these newfangled distribution types and the associated employee questions that might arise.

For a quick CARES Act refresher, please watch the video above, and feel free to contact us for a more detailed review of the act’s provisions.

Headline Image_Four ways to help reduce financial stress for your employees

Employee financial stress is a hot topic. So much so, that nearly 60% of employees cite finances as their primary stressor. [1] Their financial worries surpass other top stressors, and it’s impacting their job performance.

Research shows financially stressed employees are less productive and more distracted at work. They also have higher rates of absenteeism and presenteeism (at work but not fully functioning). Employees typically spend more than three hours a week dealing with their personal finances at work and they lose nearly a month of productive work time (21-31 days a year) due to financial worries.[2]

Employers simply can’t afford to ignore employees’ financial stress. Lost productivity due to financial stress costs American businesses $500 billion annually — around 2.5% of the U.S. gross domestic product (GDP).[3]

The good news is that many employees want help dealing with their financial strain — and they appreciate their employer’s help. Read the rest of this entry »

Headline Image - Pros and Cons of Taking Coronavirus-related Distributions from Retirement Savings

The COVID-19 pandemic has undoubtedly shaken our economy to the core. Many businesses have struggled to keep their doors open which has caused unemployment claims to soar. Record unemployment, coupled with a populous that has an average household savings account of about $8,800[1], has many people looking to their retirement savings as a “piggy bank” for necessary funds to keep their heads above water.

Withdrawing retirement savings should be carefully considered, even in view of the loosening of restrictions around withdrawals as a result of the Coronavirus Aid, Relief, and Economic Security (CARES) Act because any withdrawal can have a multiplying impact on long-term retirement goals. Read the rest of this entry »