Deadlines are Fast Approaching

A new requirement for Colorado small businesses rolled out this January with deadlines between May 15 and June 30. As of January 2023, small businesses throughout Colorado are required to offer retirement savings plans to their employees. Deadlines to comply are fast approaching between May and June depending on small business size.

  • March 15, 2023: Employers with 50-plus employees
  • May 15, 2023: Employers with 15 to 49 employees
  • June 30, 2023: Employers with 5 to 14 employees

If you are a small business that falls under the requirements it is important you take action to comply quickly. Small businesses that are required to comply are those with five or more employees who have been employed for 180 days or longer and do not already offer a qualified retirement plan.

Small businesses that fall under this category have two options:

  1.  Join the new Colorado secure savings program or
  2.  Begin offering a retirement benefit to employees on their own.

The state has sent out letters via mail or email to small business owners with an access code giving them the option to enroll in or opt out of the program. If you have not received an access code from the state, please reach out to receive your code. You can go to the Colorado Security Savings Program website for the number to call for more information.

The process to enroll in a plan takes time as well as the process to open any outside retirement account if that’s what you choose to offer to your employees. For this reason, it is important that as a small business owner, you decide and start the process sooner rather than later. Qualifying plans that would allow you to be exempt from the state program consist of 401(k)s, 403(b)s, simple IRAs, etc. To see if your plan qualifies, please visit

If you choose to enroll your small business in the program here is what you can expect. The Colorado secure savings program works like a Roth IRA with contributions limited to $6,500. All funds put into the plan by the employee are theirs to take with them when they leave your company. The Colorado Secure Savings Program Board selects the funds offered within the program. There is no option for an employer match, but employers must facilitate the program. In an effort to encourage retirement savings for individuals, the program has implemented an automatic enrollment at 5% that will increase every year until it reaches 8%. Employees will have the option to change their enrollment percentage/referral percentage all the way from 0% to the $6,500 limit.

This state program is designed to be simple for employers to facilitate with minimal cost, however, there still is administrative burden that comes with facilitating this program. It is essential you understand the rules and regulations around the Colorado Secure Savings Program and are prepared to implement it within your business. If you choose to, you can have an outside representative help you with the administration of the program Speak to your representative to determine any cost of this. The cost of opting out of the program and starting or joining an outside plan varies depending on the plan type. Reach out to a qualified representative to learn more.

With deadlines just weeks away, Staffscapes is here to help you choose and execute a plan quickly to stay in compliance with these new regulations.