Companies are not required to provide retirement benefits, according to BizFilings. Companies that choose not to provide these benefits typically do so to save the cost of the benefits themselves as well as the time and expense involved with administering a retirement plan.
However, offering retirement benefits can be beneficial even to small businesses, as BizFilings points out. Companies are more likely to recruit high-quality employees if they offer a retirement plan, and a company's owners can take advantage of the benefits themselves. Retirement plans that have a profit-sharing aspect to them may increase employee productivity. In addition, the federal government offers tax advantages to companies that offer retirement plans.