Table of Contents:
- The Maryland Saves Program: An Overview
- Why Choose the Maryland Saves Retirement Program?
- Who Is Eligible for the Maryland Saves Program?
- The Benefits to Employees: A Closer Look
- How BlueStone’s Human Resources Consulting Services Can Help?
- MarylandSaves FAQs: Maryland’s State-Mandated Retirement Plan
- Key Takeaways
In the growing world of Maryland’s small businesses, a game-changing initiative launched on September 15, 2022 – the MarylandSaves Program. As a small business owner, you may already be aware of this state-sponsored retirement and savings program. But if you’re hearing about it for the first time, you are in the right place. In this comprehensive guide, BlueStone Services will unpack what this program is, why it was launched, who is eligible, and how it benefits both employers and employees alike.
We will delve into the details of the Maryland Saves Program and how it influences the business landscape in our great state. Stay tuned as we explore this exciting development in Maryland’s robust small business community.
The Maryland Saves Program: An Overview
The MarylandSaves Retirement Program was created as a proactive measure to bolster future savings among employees in the state. As a state-sponsored program, it mandates eligible employers to establish a retirement savings plan for their employees.
Essentially, the Maryland Saves Program has automated the retirement savings process, making it an effortless part of your employees’ journey. This initiative, backed by the Maryland Small Business Retirement Savings Program, aims to build a financially secure future for our workforce, directly contributing to the overall prosperity of our state.
Why Choose the Maryland Saves Retirement Program?
Prior to the inception of the Maryland Saves Program, nearly one million private-sector employees in Maryland lacked access to an employer-sponsored retirement savings plan. To bridge this gap, MarylandSaves offers employers an easy, hassle-free way to provide a retirement savings option.
It empowers employees with an automatic Roth IRA, a savings vehicle they can carry throughout their career. By participating in this program, employers not only fulfill a legal requirement but also play a pivotal role in securing their employees’ financial future. This is a win-win for businesses and employees alike, contributing to a more financially stable Maryland.
Who Is Eligible for the Maryland Saves Program?
Any private-sector, for-profit or non-profit business operating in Maryland may be required to participate in the MarylandSaves Program if it fulfills certain criteria:
- The business employs an automated payroll system or service.
- The business has been in operation for at least two years.
- The business doesn’t currently offer an employer-sponsored retirement savings plan to its employees.
- The business hasn’t provided a retirement savings plan in the past two years.
It’s important to remember that businesses meeting these criteria can establish their own retirement savings program as an alternative to MarylandSaves. Either way, this initiative ensures that more workers have access to a retirement savings option.Employers that enroll do not have to pay a fee for the services, are not permitted or required to make contributions to the plan and have no federal reporting requirements in relation to the program. As an incentive, the Maryland Department of Assessment and Taxation will waive its $300 annual report filing fee for all eligible employers who enroll in the program by December 1st.
The Benefits to Employees: A Closer Look
Once a business decides to participate in the MarylandSaves Program, employees are automatically enrolled but can choose to opt-out at any time. This simplicity removes barriers and makes it easier for employees to start saving for their future.
The initial contribution rate to an employee’s personal WorkLife Savings Account is 5% of their pay, providing a solid start to their retirement savings journey. What’s more, employees have the flexibility to choose lower or higher rates. Default contributions also escalate annually by 1 percentage point, up to a maximum of 10%, helping employees gradually increase their savings over time. This program, therefore, provides a simple, flexible, and effective way for Maryland’s workers to secure their financial future.
How BlueStone’s Human Resources Consulting Services Can Help?
Navigating the complexities of retirement savings programs and staying compliant with state mandates can be challenging. That’s where BlueStone Services comes in. As a Maryland-based outsourcing company, BlueStone Services provides expertise in human resources consulting solutions. Our team can guide you through the Maryland Saves Retirement Program, helping you understand its intricacies and ensure your business remains compliant.
Moreover, BlueStone Services offers valuable support for ongoing HR matters and retirement plan maintenance, freeing you to focus on your core business operations. Contact us today to learn how BlueStone Services can assist your business.
MarylandSaves FAQs: Maryland’s State-Mandated Retirement Plan
What is the Maryland Saves Program?
The Maryland Saves Program is a state-sponsored retirement and savings program. It mandates eligible businesses in Maryland to establish a retirement savings plan for their employees. Businesses with an automated payroll system must offer a retirement plan or register their employees for MarylandSaves.
Who is eligible for the Maryland Saves Program?
Private-sector businesses (for-profit or nonprofit) operating in Maryland that employ an automated payroll system, have been in operation for at least two years, and do not currently offer an employer-sponsored retirement savings plan to their employees are eligible. Also, the business should not have provided a retirement savings plan in the past two years.
How does the Maryland Saves Program benefit employees?
The program enables employees to automatically save for their retirement through an automatic Roth IRA. The initial contribution rate to their personal WorkLife Savings Account is 5% of their pay, and they can choose lower or higher rates. Default contributions escalate annually by 1% to a maximum of 10%.
What is the role of BlueStone Services in the Maryland Saves Program?
BlueStone Services, a Maryland-based outsourcing company, can help businesses navigate the MarylandSaves Program and remain compliant. They provide services in various areas, including accounting, HR consulting, and business consulting.
How can I find more information about the Maryland Saves Program?
You can find more information about the program by visiting the official website at www.marylandsaves.com.
What if my MD business already has a retirement savings plan?
If your business already offers a retirement savings plan, you are not required to participate in the Maryland Saves Program. However, you should ensure your existing plan remains compliant with state and federal laws.
Can employees opt-out of the MarylandSaves Program?
Yes, employees can opt out of the program at any time, giving them control over their participation.
- The MarylandSaves Program, launched statewide on September 15, 2022, is a state-sponsored retirement and savings initiative that aims to help employees save for their future.
- Businesses in Maryland using an automated payroll system are required to establish a retirement savings plan for their employees. This could be their own retirement savings program or enrolling their employees in MarylandSaves.
- The program is targeted at those businesses that have been operational for at least two years and have not offered a retirement savings plan in the last two years.
- The benefits to employees are substantial. They get automatically enrolled into a savings plan where the initial contribution rate is 5% of their pay, with an option to adjust the contribution rate. Also, default contributions increase annually by 1%, up to a maximum of 10%.
- BlueStone Services offers valuable support for small to midsize organizations in various areas including HR consulting, outsourced accounting, and helping businesses understand and navigate the MarylandSaves Program by staying compliant.
- Additional information about the Maryland retirement program can be accessed on the official website: www.marylandsaves.com.