The November 1st deadline for companies with 25 to 99 employee is tomorrow. Act now before it's too late!
But what if it's too late. What happens when you ignored the Illinois Secure Choice deadline? Do the penalties start immediately? Where should you turn?
First, I'd encourage you to contact the Illinois Secure Choice Employer Assistance phone line at (855) 650‑6913. The Client Services Team will be able to explain your options going forward and answer your questions. What about the penalties? Courtney Eccles, who is overseeing the program in the Illinois treasurer's office, recently said, "Penalties for not complying are $250 per employee for the first year and $500 per employee for each subsequent year. Since the program is new, our goal is to work with employers to bring everyone into compliance, so there has been no roll out of enforcement or fines yet, and our focus is on helping employers to register and begin facilitating the program."
But that doesn't mean Illinois won't eventually come knocking for fines and penalties (which are more than the cost to operate a 401(k) plan). I believe if you establish a retirement plan within a reasonable time frame, the state of Illinois will see your intent to establish a plan for your employees. I'd encourage you to contact us to see if a retirement plan, like a 401(k) plan, might better serve your employee's retirement needs.
If you have any questions, need additional information, or would like to talk about other retirement plan options, please do not hesitate to contact Associated Pension Services, Inc. We have been involved in the retirement plan administration business for over 30 years, helping small business owners and HR managers like yourself navigate, establish, and implement retirement solutions. You don't need to go at this alone.
Frederic (Eric) Hoffman, IV, AIF®, CPFA, APR, RICP®