NY’s new retirement mandate is here. Is your business compliant?

by Strategic Planning Associates

New York State has expanded workplace retirement coverage through the New York Secure Choice Savings Program, and for many employers, participation is no longer optional.

If your business does not already offer a qualified retirement plan and meets certain criteria, state law requires you to register for and implement Secure Choice — or adopt an alternative plan that satisfies federal and state standards.

Understanding the rules, deadlines, and consequences is essential to staying compliant and avoiding penalties.

What Secure Choice Is—and Why It Matters

Secure Choice is a state-administered retirement savings program designed to give employees access to a workplace savings option. Eligible workers are automatically enrolled, and contributions are deducted from payroll into a Roth IRA held in the employee’s own name.

While the program is intended to benefit workers who otherwise lack access to retirement savings, for employers it is fundamentally a compliance mandate under New York State General Business Law.

Failing to act when required can create unnecessary legal and financial risk.

Who Is Required to Comply

Your business must register for and facilitate Secure Choice if it meets all of the following conditions:

• The business is located in New York State;
• It employed 10 or more workers on payroll during the prior calendar year, including part-time and seasonal staff;
• It has been in operation for at least two years; and
• It does not currently offer a qualified retirement plan, such as a 401(k), SIMPLE IRA, or SEP IRA.
• If these criteria apply, the obligation to act is clear.

Key Deadlines to Know

Compliance deadlines are based on employer size:

• Employers with more than 30 employees: April 15 (now passed)
• Employers with 21–30 employees: May 15 (now passed)
• Employers with 10–20 employees: June 15

Missing your assigned deadline exposes your business to state enforcement. Penalties escalate the longer noncompliance continues, making delays increasingly costly.

What Employers Are Required to Do

Compliance involves several concrete steps:

1. Register through the New York Secure Choice online portal by your applicable deadline.
2. Configure your payroll system to automatically enroll employees and deduct contributions at the default rate (employees may opt out or adjust contributions).
3. Distribute required employee notices explaining enrollment, opt-out rights, and account management.
4. Maintain records of your registration, payroll deductions, and employee communications.

While contributions come solely from employees, employers are responsible for administering these processes accurately and on time.

Consequences of Noncompliance

The State assesses fines for failing to register or implement Secure Choice payroll deductions. These penalties increase with continued noncompliance, turning what may seem like an administrative task into a material financial exposure.

From a risk management perspective, this requirement should be treated with the same seriousness as other employment and payroll obligations.

Alternatives and Strategic Considerations

Secure Choice is not the only option. Businesses may be exempt if they adopt a qualified retirement plan, such as a 401(k), SIMPLE IRA, or SEP IRA.

These plans can involve higher administrative responsibilities and, in some cases, employer contributions, but they may also offer higher contribution limits and access to federal startup tax credits. Arrangements through PEOs, association plans, or multiple-employer plans should be reviewed carefully to confirm whether they meet exemption standards.

Practical Next Steps

Business owners should begin by confirming prior-year employee headcount and determining whether an existing plan qualifies. If registration is required and has not yet occurred, taking action immediately is prudent.

For those weighing Secure Choice against alternative plans, a conversation with a payroll provider, benefits broker, or legal or financial advisor can help clarify obligations, costs, and timelines—and ensure the path you choose aligns with both compliance requirements and long-term business goals.

Note: This message is for general information. Please verify details with New York State’s official Secure Choice resources and your legal/tax advisors.