If you are a Delaware employer with 5 or more employees, please pay careful attention to the following information regarding the Delaware EARNS program.
The Delaware EARNS (Expanding Access for Retirement and Necessary Savings) program is a state-sponsored program that aims to help Delaware workers save for retirement, especially those who don’t have access to employer-sponsored plans.
EARNS allows employees to save for retirement through a Roth Individual Retirement Account (IRA) by default or an optional Traditional IRA with automatic payroll deductions. The program is designed to be simple for both employers and employees and have minimal costs.
Delaware employers (for-profit and nonprofit) with five or more employees (full or part-time) must register for the program if they don’t offer a qualified retirement plan. The program is also available for self-employed individuals.
Employers who fail to comply with the Delaware EARNS program may face penalties.
Employer Responsibilities
- Registration/Certification: Employers must register or certify their exemption from the EARNS requirements by October 15, 2024. Employers will receive a unique Access Code for this process. Employers must provide basic information about their employees, payroll process, and banking information to register. Once employees have been identified, Delaware will communicate directly with them to explain their options during the 30 days they have to opt-out or customize their accounts.
- Payroll Contributions: Employers will need to coordinate internal payroll or with their payroll provider to set up necessary deductions for employee contributions. If the employee does not specify a contribution rate, the default rate is 5% of their pay.
- Continued Compliance: Employers must continue to ensure compliance with the program by regularly updating employee information and accounting for, collecting, and submitting employee contributions.
For more information, please visit: www.earnsdelaware.com
