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January 19, 2023
To address the growing retirement savings gap that will occur for many residents in the future, the Illinois Secure Choice Program was created to ensure all Illinois workers can save for retirement through automatic payroll contributions facilitated by their workplace.
State law now requires every employer with five or more Illinois employees to offer their own retirement program or facilitate Illinois Secure Choice. The employer is responsible for completing the enrollment process, making ongoing updates to employee information, and withholding and remitting employee contributions on a timely basis. Once registration is complete, employees have 30 days to customize their account or opt out of the program before automated payroll contributions are deducted. The requirement for employers to register for the program is phased-in, with the deadline to begin participation for employers with 16 or more employees occurring on or before November 1, 2022 while employers with 5-15 employees are required to register by November 1, 2023. Employers that offer a qualified retirement plan can register for an exemption from the program.
For more information about the Illinois Secure Choice Program and how it affects your business, visit https://employer.ilsecurechoice.com/ or contact us.