An Overview of the Colorado Secure Savings Act: Employer Responsibilities

If your business is in Colorado AND you have payroll (even if your payroll is only for yourself), PLEASE READ THIS ARTICLE!  

The Colorado Secure Savings Act, signed into law in May 2021, requires Colorado-based employers with at least five employees to offer a retirement savings program to their workers. 

****Regardless of the number of employees you have, this Act REQUIRES ACTION****

If Incline Business Essentials provides payroll services to your company, we have you on our list to assist.  If your payroll services are provided by a CPA or other outside company, please coordinate with us if you need assistance.  

BUSINESSES WITH FEWER THAN 5 EMPLOYEES 

1. If your business has fewer than five employees, you will receive a PIN number from the State of Colorado.  You will receive this via a letter/postcard AND/OR via email.  This PIN is necessary to officially notify the state that your business is exempt.  Please be on the lookout for this PIN and forward it to your bookkeeper.  
2. If Incline handles your payroll, Incline Business Essentials will ensure that you are registered as an exempt business with the State of Colorado.  Incline will bill you accordingly for this additional work.  If you have an outside payroll provider (CPA or other), please please coordinate with us if you need help setting this up.
3. If you hire additional employees and reach the 5-employee threshold, PLEASE, PLEASE let us know.  We cannot ensure your compliance unless you communicate these changes to us.

BUSINESSES WITH 5 OR MORE EMPLOYEES

Do you already offer an acceptable employee savings plan?  Please read the applicable category below:

If your business has five or more employees and you already HAVE an acceptable savings program set up for your employees: 

1. You will receive a PIN number from the State of Colorado.  You will receive this via a letter/postcard AND/OR via email.  This PIN is necessary to officially notify the state that your business is exempt.  Please be on the lookout for this PIN and forward it to your bookkeeper. 

If your business has five or more employees and you do NOT already offer an acceptable savings program:  

You are required by law to offer the Colorado Secure Savings program.  What does this mean for you?

1. We will need to create an online account/portal for the Secure Savings Act.  You will receive a PIN number from the State of Colorado.  You will receive this via a letter/postcard AND/OR via email.  This PIN is necessary to set up the required online portal.  Please be on the lookout for this PIN and forward it to your bookkeeper. Incline will handle the setup and will bill you accordingly.  We MUST HAVE THE PIN from you.  Please send this to us no later than June 10th.
2. Important:  YOUR EMPLOYEES WILL AUTOMATICALLY BE SET UP FOR THIS PROGRAM.  This is an “opt-out” program.  Your employees will receive an email with opt-out instructions.  This will come directly from the state after we create your online business profile.  It is YOUR EMPLOYEE’S RESPONSIBILITY TO “OPT-OUT” IF THEY CHOOSE NOT TO PARTICIPATE.   Incline cannot Opt-Out for your employee.  You cannot opt-out for your employee.  Your employee must complete this opt-out process.  Otherwise, 5% of their gross earnings will be automatically withheld from their paycheck to be placed into a savings account.
3. Each pay period, Incline Business Essentials will log into the portal with the state and make the appropriate payments into the employee savings accounts.  
4. Incline Business Essentials will be billing accordingly for this work.

TO HELP YOUR EMPLOYEES “OPT OUT”

Incline cannot opt your employees out.  The employee must opt out of the program themselves OR they will AUTOMATICALLY have 5% of their gross payroll withheld.  If they do not opt-out and funds are withheld, your employee will have to access their funds directly from the state.  Incline cannot assist you with withdrawing funds from Colorado Secure Savings.

1. Your employee should receive an email from the state with opt-out instructions.
2. If no email is received, please direct your employee to: https://coloradosecuresavings.com/ 

To our knowledge, this is the only way to opt out of the program.  If you have employees who may not be able to navigate the opt-out, we recommend that you sit at a computer or device and help them through the process.  While it is the employee’s responsibility, as the employer, it is your legal responsibility to inform your employee and ensure that your employees understand this will be happening.

Important Reminder:

Incline Business Essentials is NOT an HR company.  It is your responsibility to notify your employees in accordance with the Colorado Law.  For full details, visit the Colorado Secure Savings website.  If you are a Gusto or QBO payroll client, we can connect you with Gusto/QBO HR services if you need things like employee handbooks, etc.  

For more information about the Employer Responsibilities, please refer to: https://coloradosecuresavings.com/employers/program-details

Incline is here to help.  If you have any questions, please do not hesitate to reach out.  If we don’t know the answer, we will do our best to help find the answer.  Reminder that we will be billing for our services in setting up these systems.