Authored by James Eaton | Director, Tax
Businesses registered in Maryland may be eligible for an exemption from the $300 annual filing fee through the MarylandSaves program. Established businesses using an automated payroll system must offer either a retirement savings plan or enroll its employees in the MarylandSaves program. The program makes it possible for businesses to provide employees with a voluntary, automatic, affordable, and portable retirement and emergency savings plan. Eligible businesses that enroll in the program by December 1, 2022 may receive a waiver for the $300 annual entity filing fee. The program was established by Maryland law in 2016 under Senate Bill 1007 and implemented in September 2022.
How to Register for the MarylandSaves Program
Deadline: December 1, 2022
- To request an access code, complete this registration form
- If you already have a MarylandSaves access code, register your business here
- If your business is already participating in MarylandSaves, certify exemption here
The MarylandSaves program recently started sending Maryland-registered businesses access codes via email or USPS mail.
An alternative option may be to set up an employer-sponsored retirement plan before year end if one has not existed in the past and then certify as exempt (step 3 above).
MarylandSaves Enrollment Criteria
Employers who meet the following criteria must enroll in the MarylandSaves program:
- Have at least one W-2 employee
- Pay employees through a payroll service or system
- Have been in operation for at least two years
- Do not currently offer an employer-sponsored retirement savings plan to employees
- Have not provided an employer-sponsored retirement savings plan in the previous two (2) years
Employers who provide 401(k), SIMPLE IRA, or similar employer sponsored retirement plans for employees are exempt from the MarylandSaves program.
MarylandSaves Coverage Details
Each employee covered through MarylandSaves will have a Roth IRA created in their name. There are no employer financial contributions or MarylandSaves fees to employers, all administrative fees are paid from employee accounts. The employees will have 5% of their pay automatically contributed to this MarylandSaves Roth IRA account (increased 1% per year to a maximum of 10%). The employee will be responsible for understanding Roth IRA contribution limits, which can be complex.
Employers should coordinate directly with their payroll service and/or benefits providers to ensure that the appropriate registration or exemption is submitted.
If you have any questions about the MarylandSaves program and the impact on your business, please message our tax team and one of our professionals will contact you directly.
