That looks like more work.
OregonSaves is a program that all Oregon employers need to be aware of. Per the plan website oregonsaves.com, “Oregon employers are required to facilitate OregonSaves if they don’t offer an employer-sponsored retirement plan.”
The deadline to register or certify your exemption from the plan depends on the number employees a business has. If you are concerned about which deadline is applies to your business, it may be wise to before the next deadline. You can register through the Oregon saves website at any time. We’ve provided a link to the OregonSaves website below, which details the deadlines:
You are not required to facilitate Oregon saves, so long as you offer an employer sponsored retirement plan that qualifies you for an exemption. There are several options. We highly recommend that you contact a professional with expertise in retirement planning before you register your business. We would be happy to help in this regard. We’ve included two plan types below that you may want to consider.
SEP IRA Plan – This type of plan is typically most suitable for a single member LLC or a sole proprietorship with no employees (except possibly the owner). The reason for this is that most SEP retirement plans require that all participants in your company’s SEP plan receive the same percentage of contribution. If you want to contribute 5% of your salary as the business owner to the plan, your business must also contribute the same 5% of each participating employee’s wages on their behalf.
SIMPLE IRA Plan – SIMPLE plans are often more suitable for small businesses that have a few employees. These plans generally require that employers make an annual decision to either contribute 2% of each eligible employee’s compensation (regardless of the employee’s deferral), or match employee’s deferrals dollar-for-dollar up to 3% of the employee’s compensation. These percentages and stipulations can change based on a number of variables. It is important to understand the specifics of a given SIMPLE plan prior to its establishment.
Please note that if you do currently offer an employer sponsored retirement plan that exempts you from facilitating the OregonSaves plan, you are still required to register your exemption through the OregonSaves website by the appropriate deadline.
The information we’ve included here is by no means exhaustive and is not intended to be tax advice for you or your organization. You should consult a professional regarding your specific situation. Give us a call or schedule an appointment. We’re here for you.
Robert D. Russell, CPA PC