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October 2022: New Small Business Retirement Savings Program Goes into Effect in Maryland

27 Oct

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Update Applicable to:
All employers with employees in the state of Maryland.

What happened?
On September 15, Maryland launched the Maryland Small Business Retirement Savings Program.

What are the details?

MarylandSaves requires Maryland employers (and employers elsewhere with Maryland employees) to sign up for the program and offer its eligible employees the opportunity to establish MarylandSaves retirement accounts and fund them via payroll deductions. Employers are asked to sign up through the MarylandSaves.com website. For each year an employer participates in the Maryland Saves program, Maryland waives the $300 filing fee that must accompany the employer’s annual report.

A Maryland employer sponsors employees’ retirement plans isn’t eligible to participate. But it is eligible for the $300 filing fee waiver nonetheless. The employer has to certify on the MarylandSaves website that it maintains a qualified retirement plan for its employees to obtain the $300 per year waiver of the filing fee due in April. According to MarylandSaves’ officials, an employer has to sign up for MarylandSaves or certify that it maintains a retirement plan by December 1 to obtain the filing fee waiver for the annual report due in April 2023.

Maryland is not the only state that mandates participation in a state-sponsored retirement program for any employer that does not maintain a retirement plan. Another 20 states have established or are in the process of establishing state-mandated retirement programs. States such as California, Illinois, Connecticut, and Oregon have already implemented such retirement programs.

For more information, please see the links below:

MarylandSaves.com

Article

What do employers need to do?
Employers should review the links provided above, sign up for the program, and offer their eligible employees the opportunity to establish MarylandSaves retirement accounts and fund them via payroll deductions.

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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