Toast Payroll: State-Mandated Retirement Plans

In this Article:

• State-Mandated Retirement Plan Background
• Your Role as an Employer and How Toast Payroll Can Help

State-Mandated Retirement Plan Background

In the past several years, some states have passed laws that require certain businesses to offer a private retirement plan or participate in a state or city-run retirement program. These state or city-run programs are sometimes referred to as Auto-IRAs and may resemble ROTH IRAs or traditional IRAs. For a full list of states supporting state-mandated retirement plans, check out this link through our partner Vestwell.

While state and local law varies, generally speaking, employers have two options:

1. The first option is to participate in a state or city-run program, if available.
   1. Please note Toast does not have an integration with any of the state or city-run programs.
   2. As a result, customers will have to submit and requisite files manually to their state or city.
   3. 401(k) providers or state programs (such as the CalSavers State-Mandated Retirement Plan) program cannot be set up as a vendor through Toast Payroll.
2. The second option is to offer a private retirement option (e.g. 401(k))
   1. Please note Toast has partnered with Vestwell Retirement to provide Toast customers with an Integrated Retirement Solution. Learn more about our Vestwell partnership here.
   2. Follow instructions on filing your exemption as needed.

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Your Role as an Employer and How Toast Payroll Can Help

1. Determine your mandate status, i.e. if you're required to participate. This page from Vestwell can help you determine your mandate status.
2. Register your business with the applicable state program.
3. Add employee information into the program's website.
   1. How can Toast Payroll help?
      1. Use Toast's custom reporting feature to create a census report that matches the Employee Information template from the program's website.
      2. See Toast Payroll: Optimize the Report Library for assistance on creating a custom report or check out this quick how-to video on building a custom report.
4. Communicate the enrollment window to your employees.
   1. How can Toast Payroll help?
      1. Toast Payroll's To-Do feature can be used to communicate to employees.
5. Add employee elections into Toast Payroll.
   1. Employee elections can be added via an employee's profile by navigating to Employment > Recurring > Deductions tab.
   2. Check out Toast Payroll: Add or Edit Earnings & Deductions for assistance in adding a recurring deduction.
   3. How can Toast Payroll help?
      1. Ask your Toast Onboarding Consultant (pre-live customers) or email Toast's Customer Care department with this form (post-live) to add a ROTH IRA deduction code to your database.
6. Submit contributions back to the state or city-run program. Follow the state's guidelines for submitting contributions.
   1. How can Toast Payroll help?
      1. With Toast's Custom Reporting feature, you can create a payroll report with contributions.
      2. See Toast Payroll: Optimize the Report Library for assistance on creating a custom report or check out this quick how-to video on building a custom report. Please note that CalSavers or other state-plans cannot be set up as a Vendor.

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This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice.  Please contact an attorney or other professional for advice.