What Happened?

As a reminder for New York employers, the state’s Secure Choice program is now mandatory for many private employers beginning in 2026. New York’s Secure Choice is a statewide mandate, not limited to New York City.

Private employers that have been in business for at least two years, have ten or more New York employees in the prior calendar year, and do not offer a qualified retirement plan must either certify an exemption, if they already sponsor a 401(k), 403(b), SEP, SIMPLE, or 457(b), or register to facilitate payroll deductions into a state‑administered Roth IRA.

The program also has compliance deadlines that vary by employer size:

• 30+ employees: Mar 18, 2026

• 15–29 employees: May 15, 2026

• 10–14 employees: Jul 15, 2026
  
  
• Civil penalties may apply for failing to register or certify in 2026.

Overview

• Registration: Use the Secure Choice employer portal with your Employer Identification Number (EIN) and Access Code (request a new code if needed).

• Employer role: Register/certify, upload employees, auto‑enroll, run post‑tax payroll deductions each pay cycle, keep records, and distribute state‑provided notices.

• Employee experience: Employees are automatically enrolled but may opt out. The default contribution is 3% of post‑tax pay into a portable Roth IRA.
  • Employees can choose an automatic 1% annual increase, up to a 10% contribution rate. Initial contributions are placed in a principal‑protection option for about 30 days and then shift to a target‑date fund unless the employee selects a different investment.
  • Employee‑paid fees apply and include both a flat fee and asset‑based expenses.

• NYC vs. State: NYC’s local program is effectively on hold; therefore, employers must follow the state mandate.

• Planning note: Earlier rollout updates mentioned a pilot phase and an up‑to‑nine‑month onboarding window after go‑live; today, the fixed 2026 deadlines control.

Why this matters: These rules create new payroll and notice obligations, firm 2026 deadlines, and potential penalties, but employers can avoid the state program by adopting a private plan (e.g., 401(k)/PEP) and certifying exemption.

Key Risks for Employers

• Missing the registration or exemption‑certification deadlines can result in penalties.

• Payroll issues can arise if your system cannot process post‑tax Roth deductions, if remittances are delayed, or if employee opt‑outs are not tracked correctly.

• Insufficient data readiness and privacy controls—such as incomplete SSN/ITIN, date of birth, or contact details, and weak PII safeguards—create compliance and security risks.

• Misclassification occurs if you fail to count part‑time or seasonal New York employees toward the 10‑employee threshold.

• Exemption errors happen when an employer that already offers a qualified plan does not certify its exemption by the applicable deadline.

• Providing investment or tax guidance to employees constitutes improper advice and should be avoided; instead, refer employees to the program materials or a financial advisor.

• Poor communication can cause confusion, leading employees to assume there is an employer match or a 401(k) when the program is actually a Roth IRA with no employer contributions.

For additional details:

• New York – Secure Choice Savings Program
• New York – Secure Savings Program – Employer Verification
• New York – Secure Choice Savings Program Webpage

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