Employee Health Benefits & 401K

February 05, 2026

by a searcher from Northwestern University in Melbourne, FL, USA

Hi - for those of you that have acquired a small company, did you offer health benefits and/or 401ks to the employees post-close? If so, who did you go with? If not, why?

0 Likes

9 Replies

92 Views

Replies

Reply by a searcher
from University of Wisconsin in Orange County, CA, USA

I like using a PEO as you can quickly get access to top benefits and avoid lots of compliance headaches. We use Justworks, which has been great, and Aspen HR is focused on the ETA space.

Reply by a searcher
from University of Southern California in Las Vegas, NV, USA

Ryan, Only 51% of companies with 50 employees or less have health insurance. Only 25% have 401K. So this is not abnormal for a $1.3m revenue business not to offer these. I'd ask why do you want to offer it? What problem are you trying to solve? One of my businesses have 17 people 5 office / leaders and 12 warehouse/drivers. We added health benefits 4 months in since we couldn't attract good candidates for our leaders/managers. Then we just added 401k to attract even better candidates. We have been able to steal good drivers from our competitors because we offer these benefits. We used GUSTO for both as well as our payroll and on boarding system. They can walk you through the cost depending on the variables that you want to include in each program. This is decision is like giving someone a raise once you give it, it's tough to undo it without major problems.

+7 more replies.

Join the discussion