June 11, 2026

Small businesses in New Jersey and New York may face new retirement plan compliance requirements in 2026. Learn who is affected, key deadlines, and important action steps.

New Retirement Plan Requirements for Small Businesses in New Jersey and New York

Many business owners focus on growing their companies, managing employees, and serving clients, but regulatory changes can create new obligations that deserve attention. Recent expansions to state-sponsored retirement savings programs in both New Jersey and New York now affect a broader range of small businesses, making it important for employers to understand their responsibilities and upcoming deadlines.

If your business has 10 or more employees and has been operating for at least two years, you may be required to take action—even if you already offer a retirement plan.

Why These Programs Matter

State-sponsored retirement savings programs are designed to increase access to workplace retirement savings for employees whose employers do not offer a qualified retirement plan.

While these programs primarily focus on employee savings, employers are responsible for determining whether they must participate or whether they qualify for an exemption based on an existing retirement plan.

Failure to address these requirements could lead to administrative complications and potential penalties, making early review a prudent step for business owners.

New Jersey: Retire Ready NJ Expansion

New Jersey has expanded its retirement savings program to include smaller employers.

Businesses may be affected if they:

• Have 10 or more New Jersey-based employees
• Have operated in New Jersey for at least two years
• Do not currently offer a qualified retirement plan such as a 401(k), SIMPLE IRA, or SEP IRA

For employers that must participate, employees are automatically enrolled at a default payroll deduction rate of 3% of gross wages, although employees retain the ability to opt out or modify their contribution elections.

An important point for business owners is that employers do not make matching contributions through the program and generally serve an administrative role in facilitating payroll deductions.

New York: Secure Choice Program Deadlines Approaching

New York’s Secure Choice Savings Program is entering its final implementation phases, creating important compliance deadlines for eligible employers.

The program generally applies to private-sector employers that:

• Have 10 or more New York-based employees
• Have been in business for at least two years
• Do not offer a qualified retirement plan

Upcoming compliance deadlines include:

Employers with 30 or More Employees

March 18, 2026

Employers with 15–29 Employees

May 15, 2026

Employers with 10–14 Employees

July 15, 2026

Participating employers are required to submit employee information and facilitate payroll deductions for employees who do not opt out during the enrollment period.

What If You Already Offer a Retirement Plan?

Many business owners assume that offering a 401(k), SIMPLE IRA, or SEP IRA means no action is required.

While businesses with qualified plans are generally exempt from participation, they may still need to certify their exemption through the applicable state portal.

This certification process typically requires information such as your Federal Employer Identification Number (EIN) and any state-issued registration or access code.

Employers should review any recent correspondence from state agencies to determine whether additional action is required.

Three Action Steps for Business Owners

1. Review Your Employee Count

Confirm your average W-2 employee headcount to determine whether your business meets the applicable threshold in either state.

2. Locate State Communications

Check physical mail and email correspondence for registration notices, access codes, or instructions related to the retirement savings programs.

3. Evaluate Your Retirement Plan Strategy

If you do not currently offer a retirement plan, this may be an appropriate time to evaluate your options. For some employers, establishing a private retirement plan may provide greater flexibility and employee benefits than participating in a state-sponsored program.

Final Thoughts

The expansion of state-sponsored retirement savings programs reflects a growing trend toward broader retirement plan coverage for employees. Business owners in New Jersey and New York should review their eligibility, understand applicable deadlines, and take any required action before compliance dates arrive.

A proactive review today can help avoid last-minute administrative challenges and ensure your business remains focused on what matters most—serving clients, supporting employees, and pursuing long-term growth.

This blog was developed with the assistance of AI-based tools for research, drafting and editing support (ChatGPT), and reviewed by OMNI 360 personnel for accuracy and relevance. The information provided is educational and general in nature and is not intended to be, nor should it be construed as, specific investment, tax, or legal advice.