September 3, 2021

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Social Security projected to run out in 2034

On Tuesday, the Social Security Board of Trustees stated in its annual report that the Social Security Trust Funds, which are comprised of the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds, are projected to run out sooner than previously estimated:

The year when the combined trust fund reserves are projected to become depleted, if Congress does not act before then, is 2034 – one year earlier than last year’s projection. At that time, there would be sufficient income coming in to pay 78 percent of scheduled benefits.

Especially in a time of so much economic uncertainty, ensuring a secure retirement for workers is essential. One way business owners can make a difference is by offering 401(k) plans to help their teams save tax-advantaged money for retirement. You can also go the extra mile and match contributions to multiply their savings. Learn more about offering a 401(k) match program here.

Getting down to business planning

As a business owner, one of the best tools you can have is a business plan. These plans are essential to starting your business, expanding—and pivoting, as so many businesses did over the past year. There are even different types of business plans for different needs. Ultimately, though, a good business plan will help you solidify your business model and develop a strategy for success.

Need help writing your first business plan or updating an old one? We’ve got you covered. Read our guide on why you need a business plan, who’ll be reading it, and what to include on our blog.

EOY Benefits Series, Part 1: What is an HRA?

We’re coming up on the end of the year, which is when employers and employees turn their attention towards benefits. In the coming weeks, we’ll spotlight helpful benefits guides to answer some common year-end questions.

This week, we’re getting started with “What is an HRA?” HRAs, or Health Reimbursement Arrangements, are employer-provided benefits that help employees pay their out-of-pocket medical expenses. In some cases, they can also assist with premium payments. There are different types of HRAs employers can offer, and they fund the plans.

Employer contributions to HRAs aren’t considered employee income, so they allow employees to be reimbursed tax-free for qualified medical expenses, up to a set amount determined by the employer for a coverage period. Employers can add as much as they want to HRAs, and balances can typically (but not always) be rolled over into the next year, though they can’t be refunded to employees.

Check out our full guide to HRAs, and tune back in next week for another benefits spotlight.

Watchlist

ICYMI: Employee Retention Credit — Are You Eligible to Save Thousands?

Earlier this week, Gusto payroll and compliance experts hosted a free webinar breaking down the Employee Retention Credit program. They answered dozens of employer FAQs and showed viewers how to use Gusto’s ERC calculator and our platform to calculate and claim the tax credit. Watch the webinar replay by entering your info here.

Find the latest relief options in our Small Business Relief Finder.

Want more news and resources? Check out past editions in our archive.

Mohini Kundu Mohini Kundu is a news editor on the Gusto content team. She studied journalism at Northwestern University and started her career at The Huffington Post before embracing the #startuplife.
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