OREGONSAVES WAVE THREE ROLLOUT
The Oregon State Treasury deadline for employers to register in wave three of the new state retirement program known as “OregonSaves” is quickly approaching. Employers with 20-49 employees that have not already registered or claimed an exemption should receive a notice from OregonSaves to remind them of the December 15thdeadline.
The notice from OregonSaves will include a link to http://employer.oregonsaves.com; employers will need to complete the registration or certification process online. For employers with an email address on file, the notice will be sent via email from email@example.com. For all others, it will be sent by regular mail in an envelope marked “OregonSaves”.
The state treasurer recently announced that starting with the third wave; the state will use Form 5500 data to automatically exempt employers from the OregonSaves program who already have retirement plans in place. Employers who receive an automatic exemption notice from the state are not required to take any additional action. If an employer does not receive this automatic exemption notice but already has a retirement plan in place, the employer must use the online portal to complete the exemption process.
WHAT IS OREGONSAVES?
OregonSaves is a Roth IRA retirement savings program for employers that do not offer an employer-sponsored retirement plan, such as a 401K. Under the program, employers must register their company with OregonSaves or certify that the company is exempt from the program.
The program does not involve any employer contributions and employees are not required to participate. However, employees will be auto-enrolled soon after their employer registers for the program. Employees contribute 5% of their gross wages; this will increase by 1% annually up to the maximum of 10%. OregonSaves will send the employee details on how to login to the OregonSaves employee portal and the employee will have an opportunity to change their contribution amount or opt-out of the program.
HOW IS THIS PROGRAM BEING ROLLED OUT?
The State of Oregon is rolling this program out in several waves; employers with 100 or more employees were expected to register last November in the first wave and employers with 50 to 99 employees should have registered by May 15, 2018 in the second wave. The remaining four waves of registration deadlines for employers are as follows:
• Wave Three – Employers with 20 to 49 employees: December 15, 2018
• Wave Four – Employers with 10 to 19 employees: May 15, 2019
• Wave Five – Employers with 5 to 9 employees: November 15, 2019
• Wave Six – Employers with 4 or fewer employees: May 15, 2020
According to the Agency, smaller employers can join OregonSaves now or they may wait until closer to their scheduled deadlines.
Employers who expect to receive a notice in this wave but do not receive one or who have other questions about which deadline applies to their organization can reach out to the OregonSaves client services team at (844) 661-1256 or firstname.lastname@example.org.
HOW TO GET STARTED
Contact your Account Manager and inquire about setting up a state sponsored retirement savings program. Paylocity will partner with the vendor to setup this integration allowing the required data exchange in support of administering the plan.
Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.