Reminder on Connecticut’s Mandatory Employer Retirement Plans
As a Connecticut small business employer, you are required to enroll in the mandatory CT Savers Plan by August 31, 2023 (extended date) or opt out of the CT plan, by implementing an employer-sponsored plan.
How the CT Plan affects employers:
Employers will be required to register, or certify exemption, if they already offer an employer- sponsored retirement plan here: https://myctsavings.com/employers/program-details/
What are your options as an employer:
Now is the time to consider setting up an employer-sponsored retirement plan, which offers much more flexibility for yourself and your employees. Please reach out to your payroll provider as soon as possible to discuss your plan options.
As additional incentive for starting an employer plan, you may qualify for the Federal Retirement Plan Startup Credit, which could be as high as $5,000 and spans 3 years.
How the CT plan affects employees:
All employees, at least age 19, who have been paid more than $5,000 in the calendar year will be automatically enrolled by their employers in this Roth IRA program. Employee payroll deductions will be 3% of gross pay, up to the annual IRA limits with additional catch-up offerings.
Employer contributions are not required, but compliance and administrative tasks are required by the employer/payroll service.