State-Mandated Retirement Plans: A Guide for Small Businesses
For many small business owners, managing payroll and employee benefits is a complex and time-consuming task. Now, with a growing number of states implementing mandatory retirement savings programs, it's more important than ever to understand your obligations and streamline your processes.
This blog post will break down the basics of state-mandated retirement plans and provide a step-by-step guide on how to set up and track them using QuickBooks Payroll.
What are State-Mandated Retirement Plans?
A state-mandated retirement plan is a state-sponsored program that requires private-sector employers to either offer a qualified retirement plan (like a 401(k)) or enroll their employees in the state-sponsored program. These programs are typically Roth IRAs, and they are designed to help workers save for retirement, especially those who don't have access to an employer-sponsored plan.
Here's a quick look at some of the states with active or developing mandatory retirement programs:
- California: CalSavers
- Colorado: Colorado SecureSavings
- Connecticut: MyCTSavings
- Delaware: Delaware EARNS
- Illinois: Illinois Secure Choice
- Maryland: MarylandSaves
- Massachusetts: CORE Plan (voluntary for certain nonprofits)
- New Jersey: RetireReady NJ
- New York: New York Secure Choice
- Oregon: OregonSaves
- Vermont: VT Saves
- Virginia: RetirePathVA
Each state has its own specific rules, including employer eligibility, deadlines, and penalties for non-compliance. Be sure to check the requirements for your specific state to ensure you are meeting all legal obligations.
Setting Up and Tracking State Retirement Plans in QuickBooks Payroll
QuickBooks supports the ability to set up and track state mandated retirement plans for both our Online and Desktop Payroll platforms. To learn more about state-mandated retirement plans and for detailed steps on setting up and tracking the plans in QuickBooks, visit our community article.
