New York Secure Choice Is Now in Effect: What Employers Need to Know

If you're a small business owner in New York and you don't currently offer a retirement plan, now is the time to determine whether your business is required to comply with the New York Secure Choice Savings Program.

The program is designed to help more employees save for retirement through automatic payroll deductions. While employers are responsible for facilitating the program if they are required to participate, they are not required to contribute to employees' retirement accounts.

For most businesses, the process is straightforward with the right payroll partner.

What Is New York Secure Choice?

The New York Secure Choice Savings Program is a state-sponsored retirement savings program for private-sector employees who do not have access to a qualified retirement plan through their employer.

Eligible employees are automatically enrolled in a Roth IRA funded through payroll deductions, although they may choose to opt out or change their contribution amount at any time.

Employers do not make matching contributions or manage employee investments. Their role is simply to facilitate payroll deductions and submit them to the program.

Does Your Business Need to Participate?
In general, your business may be required to take action if all of the following apply:

• You've been in business for at least two years.
• You have 10 or more employees.
• You do not already offer a qualified retirement plan.

If your business already sponsors a qualified retirement plan, such as a 401(k), SIMPLE IRA, or SEP IRA, you generally will not need to participate in Secure Choice. However, you may still need to certify that your business is exempt.

What Should Employers Do?
If your business is subject to the program, you'll need to:

• Determine whether your business is required to participate.
• Register for the Secure Choice program or certify your exemption if you already offer a qualified retirement plan.
• Facilitate employee enrollment if required.
• Set up payroll deductions for participating employees.
• Submit payroll contributions accurately and on time.

Because the program relies on payroll deductions, it's important that your payroll system is configured correctly from the start. Once your business is enrolled, payroll deductions must be withheld correctly each pay period and remitted according to program requirements. Incorrect deductions or missed submissions can create unnecessary compliance issues and additional administrative work.

Frequently Asked Questions

Do employers need to make a matching contribution?
No. Employers only facilitate employee payroll deductions. They are not required (or allowed) to make employer matching contributions.

Can employees opt out?
Yes. Employees may opt out of the program or change their contribution elections after enrollment.

What if my business already offers a retirement plan?
If you already sponsor a qualified retirement plan, you generally will not participate in Secure Choice, but you may need to certify your exemption.

How SwiftChecks Can Help

At SwiftChecks Payroll Services, we help businesses throughout New York stay compliant with changing payroll and employment regulations.

Whether you need help determining if your business is required to participate, certifying an exemption, or setting up payroll deductions, our team can guide you through the process and help ensure your payroll is handled accurately.

If you have questions about New York Secure Choice or need assistance with payroll compliance, contact SwiftChecks Payroll Services at 914-332-4800 or visit www.swiftchecks.com. We're here to help.