1. Pre-Tax Benefitsfor small businesses Rep Name

3. TAX- SAVINGS

4. CANNOT PREDICT FUTURE, ONLY PREPARE

5. ATTRACT HIGHER QUALITY EMPLOYEES

6. RETAIN CURRENT EMPLOYEES2 Revised 1/27/2011

7. Retirement – a “three-legged” stool Read the following excerpt from the Social Security Administration’s website: “Social Security was never meant to be the sole source of income in retirement.” A comfortable retirement is based on a “three-legged” stool of Social Security, company-sponsored retirement plans and personal savings. 3 Revised 1/26/2011

8. Pre-Tax Growth vs Post-Tax Growth *Assuming 25% tax rate, 10% rate of return, compounded only monthly 4 Revised 1/26/2011

10. What is compounding interest?

11. The process of reinvesting interest to earn additional interest

12. The more frequent the compounding, the more you earnThe example below shows the difference a head start can make 5 Revised 1/26/2011

13. Revised 1/26/2011 6

14. 7 Revised 1/26/2011

15. Revised 1/26/2011 8

16. Attract Top Employees Studies show that without benefits, outside of acquaintance or luck, a business owner cannot attract the best quality EMPLOYEES Research shows small businesses need retirement benefits* While some research shows that small business retirement plans are too expensive for their potential customers, a new survey underscores the fact that employers might want to reconsider that notion. By Editorial Staff While some research shows that owners think small business retirement plans are too expensive, a new survey underscores the fact that employers might want to reconsider that notion. Fidelity finds that 49% of workers with a retirement plan say the would not take a job with a company that doesn't offer one. 68% percent of employees said that a retirement plan is critical or very important. Just 36% of employers said it was critical or very important to their staff recruitment and retention efforts. *© 2007 Employee Benefit News and SourceMedia, Inc. 9 Revised 1/26/2011

17. Retain Current Employees If you’re not offering a retirement plan to your employees, don’t be surprised to lose them to a competitor that does! Misconceptions about 401(k)s could cost Small Business Owners By Lynn Gresham Forty percent of workers in small companies say they would leave their job for one that provided a 401(k) plan, according to a survey conducted by Harris Interactive and sponsored by ShareBuilder 401(k), a subsidiary of ING Direct. . . . 10 Revised 1/26/2011

18. How Do You Get Money In? 11 Revised 1/26/2011

19. How Can You Maximize Your 401(k)? 12 Revised 1/26/2011

21. Money Manager

22. Optional Match/Vesting13 Revised 1/26/2011

23. Possible EmployerMatching/Vesting Contributions 14 Revised 1/26/2011

24. IRS/DOL Money Manager Participants Employer Payroll Bank Record Keeper Non-Paychex 401(k) Paradigm 15 Revised 1/26/2011

25. The Paychex Advantage: A Seamless Flow of Contributions Investment Provider Paychex Client Power of Paychex Integrated 401(k) 16 Revised 1/26/2011

27. Preparation of Forms 1099-R and 945

28. Quarterly IRS nondiscrimination testing

29. Quarterly management reports

30. Quarterly participant statements

31. Daily valuation of account balances

32. Account access via participant website and automated phone system

33. Toll-free phone support

34. Loan modeling and administration

35. Roth option

36. Discretionary profit sharing plan

37. Deferral calculations for pre-tax and Roth

38. Electronic recordkeeping and fund transfer each pay period

39. Payroll integration of employee and employer contributions and census data

40. Enrollment meeting and enrollment kits

41. Automatic enrollment17 Revised 1/26/2011

42. Money Manager Options 18 Revised 1/26/2011

43. Small BusinessFlexible Spending Accounts

45. Allows employees to take certain out-of-pocket expenses on a pre-tax, rather than a post-tax basis:Medical Dental Vision Over-the-counter items With a Dr’s Prescription Dependent Care 20 Revised 1/26/2011

47. Federal Income Tax Savings

48. Tax savings on FICA

49. State Tax Savings

50. Employer:

51. Savings on FICA tax

52. Workers’ Comp Savings (CA only)APPROX. 12% SAVINGS ON PAYROLL TAXES APPROX. 25% - 45% SAVINGS ON EXPECTED GOODS AND SERVICES 21 Revised 1/26/2011

53. FSA has 3 “buckets” Plan Features 3) Out-of-pocket medical, dental, vision, and over-the-counter expenses Insurance premiums 2) Dependent Care expenses 22 Revised 1/26/2011

55. Regular non-discrimination testing

56. Enrollment meeting and enrollment materials

57. Payroll integration (payroll clients only)

58. Participant website and toll-free support

59. Employer and employee status reports

60. FSA Debit card

61. Weekly claim processing

62. Direct deposit of reimbursements

63. Discretionary employer contributions allowable through employer funded FSA23 Revised 1/26/2011