On October 21st, 2021, New York State enacted legislation which requires all employers with 10 or more New York State employees that have been in business for two or more years to offer a retirement plan. The requirement is only to establish a retirement plan where employees can contribute towards their retirement and does not mandate employer contributions. To satisfy the new requirements, employers can choose to join The New York State Secure Choice Savings Plan. Alternatively, employers can offer another qualifying retirement plan of their choice (i.e., 401(k) plan or SIMPLE IRA plan).
To comply, employers must have a payroll deposit retirement savings arrangement no later than 9 months after the New York State Secure Choice Savings Board opens the program for enrollment. As of February 7, 2022, The New York State Secure Choice Savings Plan is not yet open for enrollment. A link to the New York State Secure Choice Savings Plan website can be viewed at https://www.tax.ny.gov/about/scsp/. Employers that choose to join The New York State Secure Choice Savings Plan must enroll their employees in the program at a salary deferral of 3%. Employees can elect to opt out of the program or change their salary deferral percentage at any time.
To address any questions or concerns you have, please contact your dedicated professional at JTS Associates CPAs or contact us directly at 516-877-5900.