On October 21, 2021, New York Governor Kathy Hochul amended the state’s existing Secure Choice Saving Plan from a voluntary to a mandatory program.
New York Secure Choice Savings Overview
The 2021 amendments to the New York Secure Choice Savings Program (SCSP) make participation mandatory for covered employers and require businesses to automatically enroll employees who don’t opt-out.
Here is everything you need to know about the New York Secure Choice Savings Program:
Who Is Covered Under the New York Secure Choice Savings Program?
Employers in New York are required to register for the Secure Choice Savings Program if they:
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Have 10 or more employees (as of July 15, 2026),
- Currently do not offer a qualified retirement plan for employees, and
- Have been in business for at least two years
Employers were phased in to the requirement, starting with employers with 30 or more employees on March 18th, 2026.
Are Employers Required to Contribute?
Employers cannot match employee contributions through the Secure Choice Savings Program. Employers who are interested in providing an employer match should consider offering a 401(k) plan.
What Are My Responsibilities as an Employer for the New York Secure Choice Savings Program?
Employers have three key areas of responsibility for the New York Secure Choice Savings Program:
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Registering for the program: Employers are responsible for setting up an ID and password, adding company information, setting up payment, and then adding employees.
- Sending Contributions: Employers are responsible for payroll deductions, submitting contribution information, and ensuring contributions are made (using the above payment method).
- Maintenance: Employers must ensure that payroll deductions and contributions are received, maintain employee records, update contribution information, add new employees, and mark terminated employees.
Employers do not need to tackle these responsibilities on their own. Employers can invite a payroll provider to help them facilitate this process.
When Do New Hires Need to be Enrolled?
When a new employee is hired, onboarding information must be provided to the program administrator within 30 days after the date of employment.
How Do Employees Opt Out of Plan Participation?
The program will contact employees directly to explain their options. Employees will then have 30 days to opt out or customize their savings rate and investment choices.
Get Help Administering the New York Secure Choice Savings Program
For more information on the New York Secure Choice Savings Program contact us today or take a closer look at how our payroll solution can help keep you prepared for collecting deductions. Or, learn more about other New York Payroll Requirements.
