Are you aware of the mandatory employer 401(k) compliance mandate in New Jersey? Let’s dive into the details and understand the importance of compliance. As of March 2021, all employers with 25 or more employees are required to either enroll in Secure Choice or sponsor another qualified retirement plan.

So, what happens if you don’t comply? In the first year, you’ll receive a written warning from the state. In the second year, you’ll be fined $100 per employee not enrolled. The fines increase in the third and fourth years to $250 per employee not enrolled, and from the fifth year onwards, you’ll face a $500 fine per employee not enrolled. These fines can accumulate for any employer who fails to comply with the mandate.

But let’s not focus on the penalties alone. Mandatory employee 401(k) contributions come with several benefits. It encourages early retirement savings, providing a consistent stream of savings for your employees. It also promotes financial equity among your workforce, ensuring everyone has an opportunity to secure their future.

Navigating compliance laws and regulations can be confusing, as they are constantly changing. Hiring an employee benefits and compliance expert like Cosmo Insurance can be a smart move. They can help you stay informed and ensure your business remains in compliance with state laws, saving you from potential penalties due to a lack of knowledge.

Remember, being aware of and adhering to mandatory NJ 25+ 401(k) compliance is crucial for your business. If you need assistance with compliance, don’t hesitate to reach out to us. We’re here to help!