From mid October 2024, Delaware businesses with 5 or more employees will have to register by 10/15/24 in the Delaware EARNS (Expanding Access for Retirement and Necessary Saving) website. You could be exempt if you already offer a tax qualified retirement plan to the employees, such as 401k plan or similar. The employee can opt out of the Delaware EARNS program, but the employer is required to offer if no other plan in place.
Note that this new requirement was signed back in 2022 but it is becoming applicable now. We are noticing more and more compliance requirements for business owners approved several years back that start enforcement or application in 2024.
From the Delaware Treasurer website, you can find more information from this program (Link below) “… DE EARNS, as proposed in House Bill 205, is a program designed to provide workers and employers access to low-cost retirement savings plans. It is a “secure choice” program that amounts to State-facilitated, universally available retirement savings plans, providing a convenient way for all workers to save for retirement, particularly middle and low-income workers who lack access to employer-sponsored plans and small businesses that are unable to provide such a benefit.”
As a business owner, keep yourself informed with all new requirements and if you need help navigating the constant changing environment, please, reach out to us to ensure compliance and avoid hefty fines and penalties.
Link Delaware Treasurer – EARS program – Helping Delawareans Save for the Future
How to register in the EARS program – An Overview – Welcome to Onboarding
