State Mandated Retirement Programs — Are You Ready?

Employer Registration:

• Launch: December 2024 (Proposed)

Qualifications:

• Number of Employees: 10+
• 18+ years old
• Includes "participating individual" (freelancers & self-employed)
• Years in Business: At least 2
• Have not offered a qualified retirement plan in the preceding 2 years

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes
• Contribution Amount: 3% default, flexible

Penalty: TBD

• Paychex WORX New York Secure Choice

Employer Registration:

• 40+ Employees: September 15, 2024 (Proposed Deadline)
• 25-39 Employees: November 15, 2024 (Proposed Deadline)

Qualifications:

• Number of Employees: 25+
• 18+ years old
• Years in Business: At least 2
• Have not offered a qualified retirement plan in the past 2 years

Program Details

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes
• Contribution Amount: 3% default

Penalty: Yes

• Year 1: Written warning
• Year 2: $100/employee
• Years 3 & 4: $250/employee
• Years 5+: $500/employee

• Paychex WORX New Jersey RetireReady

• New Jersey RetireReady

Employer Registration:

• 5+ Employees: Active
• 1-4 Employees, excludes sole proprietors and self-employed individuals: December 31, 2025 (Deadline)

Qualifications:

• Number of Employees: 1 or more for more than 1 continuous calendar year
• 18+ years old
• Not currently sponsoring a qualified retirement plan

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes
• Contribution Amount: 5% default, flexible
• 1% auto-increase per year up to 8%

Penalty: Yes

• $250 per employee for non-compliance 90 days post-notice
• $500 per employee for non-compliance 180 days post-notice
• $500 per employee for each subsequent year and any nonconsecutive year of noncompliance
• Penalties are collected by the CA Franchise Tax Board

Paychex WORX California CalSavers

California CalSavers

Employer Registration:

• 5+ Employees: Active

Qualifications:

• Number of Employees: 5+
• Years in Business: At least 2
• Not currently sponsoring a qualified retirement plan
• Excludes a volunteer fire department

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes
• Contribution Amount: 5% default, flexible
• 1% auto-increase per year up to 10%

Penalty: Yes

• $250/employee for the first year for failure to enroll
• $500/employee for each subsequent year

Penalties are collected by the IL Dept. of Revenue (IDOR)

• Paychex WORX Illinois Secure Choice

• Illinois Secure Choice

Employer Registration:

• 1,000+ Employees: July 1, 2025 (Proposed)
• 500-999 Employees: January 1, 2026 (Proposed)
• 100-499 Employees: July 1, 2026 (Proposed)
• Fewer than 100 Employees: January 1, 2027 (Proposed)

Qualifications:

• Number of Employees: 5+
• 18+ Years Old
• Employed for not less than 120 days
• For profit & non-profit employers
• Years in Business: At least 3
• Has not had a qualified retirement plan within current or previous 3 calendar years

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes

Employer Registration:

• 1+ Employees: Active

Qualifications:

• Employs at least 1 W-2 employee
• 18+ years old
• Years in Business: At least 2
• Uses an automated payroll system
• Does not offer a qualified retirement plan

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes
• $300 annual credit (via waiver of MD business annual filing fee, enroll by December 1)
• Contribution Amount: 5% default, flexible
• 1% auto-increase per year up to 10%
• Initial $1,000 contributed goes into emergency savings account for the employee

• TBD

• Paychex WORX Maryland $aves

• Maryland $aves

Employer Registration:

• 5+ Employees: Active

Qualifications:

• Number of Employees: 5+
• 18+ years old
• Employed for at least 120 days
• Includes full-time, part-time, and per diem employees
• Years in Business: At least 2
• Has not offered a qualified retirement plan to some or all of its covered employees in the preceding 2 years

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes
• Contribution Amount: 5% default, flexible
• 1% auto-increase per year up to 10%

Penalty: Yes

• $20/employee from July 1, 2025 to June 30, 2026
• $50/employee from July 1, 2026 to June 30, 2027
• $100/employee thereafter

• Paychex WORX Maine Retirement Investment Trust (MERIT)

• Maine Retirement Investment Trust (MERIT)

Employer Registration:

• July 1, 2027 (Proposed Launch)

Qualifications:

• Had employees working a combined minimum of 10,400 hours during the previous calendar year
• 18+ years old
• Has been in business for at least 2 years
• Maintains a physical presence in WA
• Does not offer a qualified retirement plan to employees
• For profit & non-profit employers

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes
• Contribution Amount: 3-7% default, flexible
• 1% auto-increase per year up to 10%

Penalty: Yes

• $100/employee for the first violation for failure to enroll
• $250/employee for the second violation
• $500/employee for each subsequent violation

Washington Mandates Retirement Plan by 2027

Employer Registration:

• TBD

Qualifications:

• 18+ years old
• Earns taxable income from employer for at least 180 days

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes
• Contribution Amount: TBD

Penalty: N/A

• New Mexico Work & Save IRA Program/Retirement Plan Marketplace

Employer Registration:

• 5+ Employees: Active
• 1-4 Employees, excludes sole proprietors and self-employed individuals: December 31, 2025 (Deadline)

Qualifications:

• Number of Employees: 1 or more for more than 1 continuous calendar year
• 18+ years old
• Not currently sponsoring a qualified retirement plan

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes
• Contribution Amount: 5% default, flexible
• 1% auto-increase per year up to 8%

Penalty: Yes

• $250 per employee for non-compliance 90 days post-notice
• $500 per employee for non-compliance 180 days post-notice
• $500 per employee for each subsequent year and any nonconsecutive year of noncompliance
• Penalties are collected by the CA Franchise Tax Board

• Paychex WORX California CalSavers

• California CalSavers

Employer Registration:

• TBD

Qualifications:

• Number of Employees: 1+
• 18+ years old
• Years in business: At least 2
• Has not offered or maintained a qualified retirement plan for
• some or all employees at any time during the past 2 years

• Employee Auto-Enroll: No
• Employer Required to Notify Employee of Opt-in: Yes
• Employee Voluntary Opt-in: Yes
• Contribution Amount: 5% default, flexible

Penalty: Yes - assessed for failing to provide written notice to employees

• Make up missed contributions amount for each eligible employee + 6% interest rate
• $25 for each month per employee and $50 for each month after

Employer Registration:

• 25+ Employees: Active

Qualifications:

• Number of Employees: 25+
• 18+ years old
• Part-time EEs not eligible (less than 30 hrs./wk.)
• Employers may exclude temporary or seasonal employees who work less than 90 days a year
• Years in Business: At least 2
• Not currently sponsoring a qualified retirement plan

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes
• Contribution Amount: 5% default, flexible
• 1% auto-increase per year up to 10%

Penalty: Yes

• $200/employee annually

• Paychex WORX Virginia RetirePath

• Virginia RetirePath

Employer Registration:

• 25+ Employees: July 1, 2025 (Proposed Deadline)
• 15-24 Employees: January 1, 2026 (Proposed Deadline)
• 5-14 Employees: July 1, 2026 (Proposed Deadline)

Qualifications:

• Number of Employees: 5+
• 18+ years old
• Years in business: Current and prior calendar year
• Have not offered a specified tax-favored retirement plan within the current or 2 preceding calendar yrs

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes
• Contribution Amount: 5% default, flexible
• 1% auto-increase per year up to 8%

Penalty: Yes

• Prior to October 1, 2025: $10/employee
• October 1, 2025 - September 30, 2026: $20/employee
• On or after October 1, 2026: $75/employee

Employer Registration:

• TBD

Qualifications:

• Number of Employees: 5+
• 18+ years old
• Has been employed at least 120 days
• Does not offer a qualified retirement plan

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes

Penalty: Yes

$250/employee for failure to enroll

Employer Registration:

• TBD

Qualifications:

• Number of Employees: 5+ (in the past 6 months)
• 18+ years old
• Has been in business for at least 15 months
• Has not sponsored a qualified retirement plan within the current or three preceding calendar years

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes
• Contribution Amount: 4% default, flexible
• 1% auto-increase per year up to 10%

Employer Registration:

• 1+ Employees: Active

Qualifications:

• Number of Employees: All
• 18+ years old
• Employees working for more than 60 days
• Excludes full-time students in work-study programs
• Self-employed individuals may voluntarily participate
• Not currently sponsoring a qualified retirement plan

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes
• Contribution Amount: 5% default, flexible
• 1% auto-increase per year up to 10%

Penalty: Yes

• $100/employee (up to a maximum of $5,000/year)

• Paychex WORX Oregon Saves

• Oregon Saves

Employer Registration:

• 5+ Employees: October, 15 2024 (Proposed Deadline)

Qualifications:

• Number of Employees: 5+
• 18+ years old
• Has been employed for at least 120 days
• Years in Business: At least 6 months
• Not currently sponsoring a qualified retirement plan

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes
• Contribution Amount: 5% default, flexible
• 1% auto-increase per year up to 10%

• Penalty: Yes
• $250/employee per year, up to a maximum of $5,000/year

Delaware EARNS

Employer Registration:

• 5+ Employees: Active

Qualifications:

• Number of Employees: 5+
• 19+ years old
• Employed for at least 60 days
• Not currently sponsoring a qualified retirement plan

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes
• Contribution Amount: 3% default, flexible

Penalty: Yes

Paychex WORX Connecticut MyCTSavings

Connecticut MyCTSavings

Employer Registration:

• 5+ Employees: Active

Qualifications:

• Number of Employees: 5+ at any time during calendar year
• 18+ years old
• Employed for at least 180 days
• Self-employed individuals may voluntarily participate
• Years in Business: At least 2
• Not currently sponsoring a qualified retirement plan

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes
• Contribution Amount: 5% default, flexible
• 1% auto-increase per year up to 8%

Penalty: Yes

• $100/employee (up to a maximum of $5,000/year) for failure to enroll
• Penalty enforcement begins in 2024
• Penalties will be collected by CDLE

Paychex WORX Colorado SecureSavings

Colorado SecureSavings

Employer Registration:

• Launch: September 1, 2025 (Proposed)

Qualifications:

• Number of Employees: 50 or less
• 18+ Years Old
• For profit & non-profit employers
• Have not maintained a qualified retirement plan within the past 2 years

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes
• Contribution Amount: 1% minimum

N/A

Employer Registration:

• Launch: January 1, 2025 (Proposed)

Qualifications:

• Number of Employees: 5+
• 18+ Years Old
• For profit & non-profit employers
• Has been in business for at least 12 months
• Has not sponsored a qualified retirement plan in the preceding 12 months

• Employee Auto-Enroll: Yes
• Employee Opt-Out Option: Yes

Penalty: TBD

Employer Registration:

• 1-20 Employees: Active

Qualifications:

• Number of Employees: 20 or fewer
• Must be a registered 501(c) with the IRS
• Have payroll administered by an eligible 3rd party

• Massachusetts CORE Plan