For Whom Does the Filing Deadline Toll?
The following is a reprint from the 2022 University of Illinois Federal Tax Workbook, Volume A, Chapter 3: Rulings and Cases. We’re sharing this case because it’s not often we see…
January 16th, 2023
By November 2023, employers with 5 or more employees are required to register for this program unless they have established a retirement plan for their employees or have been in business less than two years. State-mandated retirement plans are designed to help employees save for retirement if they don’t have access to employer-sponsored plans. Secure Choice was signed into law in 2015, and currently, there are 14 other jurisdictions with state-mandated retirement programs, although not all have been implemented yet.
Businesses in Illinois with 5 or more employees that don’t offer an employer-sponsored retirement plan, have been in business longer than two years, and don’t register with Secure Choice, are subject to fines and penalties. The state will begin enforcement for noncompliant employers with 25 or more employees in early 2023. Employer fines and penalties include the following.
For Illinois Secure Choice, an “employee” is an individual who is 18 years or older, employed by an employer, and earns wages allocable to Illinois. This term includes both part-time and full-time employees. The following individuals are eligible employees if they work at least 60 days.
An “employer” is a person or entity engaged in a business, industry, profession, trade, or other enterprise in Illinois. The business can be either for-profit or not-for-profit. Additionally, the business must not have employed fewer than 5 employees in Illinois in the previous calendar year, been in business for at least 2 years, and not offered a qualified plan in the preceding 2 years.
This is a very brief overview of Illinois Secure Choice. More extensive details can be found at www.ilsecurechoice.com/home/faq.html, and will be covered during an upcoming Tax School webinar on January 18, Illinois Tax Issues and Updates. Additionally, the requirements in the other jurisdictions are likely different from Illinois’, so be sure to perform due diligence in researching those conditions.
By Kelly Golish, CPA
University of Illinois Tax School
Assistant Director, Tax Materials
820 ILCS 80/85
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University of Illinois Tax School is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in this site is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information. This blog and the information contained herein does not constitute tax client advice.
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