Are You Prepared for the Illinois Secure Choice Savings Program Act?Business
Are You Prepared for the Illinois Secure Choice Savings Program Act?
Small businesses throughout Illinois may need to take action for this Act. We are here to help.
The Illinois Secure Choice Savings Program Act is a law changing November 1st, 2023 that requires employers with five or more employees to provide access to a retirement plan. Businesses in the state of Illinois must start preparing for this new law by setting up an employer-sponsored retirement plan to avoid any state-imposed fines or penalties*. Current legislation requires businesses with over 16 employees to offer a retirement plan.
*Employers who do not comply with the Illinois Secure Choice Savings Program Act will be subject to fines and penalties as described in 820 ILCS 80/85. Enforcement for select non-compliant employers with 25 or more employees will begin in 2023.
As an employer, you have options:
- You can have your business join the state-governed plan - Illinois Secure Choice.
- You can establish and offer your employees a retirement plan (e.g., 401k, SIMPLE IRA1). And file for an exemption from the Act.
1A SIMPLE IRA is a retirement savings plan that most small businesses with 100 or fewer employees can use. "SIMPLE" stands for "Savings Incentive Match Plan for Employees," while IRA is the acronym for individual retirement accounts. Employers can choose to make a non-elective contribution of 2% of the employee's salary or a dollar-for-dollar matching contribution of the employee's contributions to the plan up to 3% of their salary.
If you have five or more employees in the State of Illinois, this new change impacts you.
Business owners with 16 or more employees are already impacted by this legislation. If you have more than 16 employees and are currently not offering a plan, we can help you get a plan started today!
Want to learn more about a possible solution for your business?