Delaware EARNS Employer
Compliance Checklist (2026)

Use this checklist to verify your Delaware EARNS compliance status. Complete all four steps — or confirm your exemption. Print or save as PDF for your records.

Step 1 — Determine Coverage

Confirm your business is a private-sector employer in Delaware (not government or federal).

Count your total W-2 employees: you must have 5 or more to be covered by Delaware EARNS.

Confirm your business has been operating for 2 or more years (newly formed businesses are temporarily exempt).

Determine whether you currently offer any qualifying retirement plan (401k, SIMPLE IRA, SEP IRA, 403b, pension, or 457b).

If you have employees in both Delaware and other states, confirm whether Delaware EARNS applies to your Delaware-based employees specifically.

Step 2 — Exemption Check

Identify your existing qualifying plan type: 401(k), 403(b), SIMPLE IRA, SEP IRA, Pension, or 457(b).

Verify your plan is currently active and in good standing — not a lapsed or recently terminated plan.

Save your exemption confirmation number and documentation for your records. Annual renewal may be required.

Step 3 — Enrollment (if not exempt)

Register your business at delawareearns.com using your EIN and business information.

Configure payroll to deduct the default 3% Roth IRA contribution from employee wages. Confirm integration with your payroll provider (ADP, Gusto, Paychex, QuickBooks, etc.).

Send required employee notices explaining Delaware EARNS enrollment, the default contribution rate, and how to opt out. Document the date notices were sent.

Set contribution start date and confirm deductions are processing correctly by the next payroll run after the 30-day opt-out window closes.

Process opt-out requests within the required window. Maintain written records of all opt-out elections and effective dates.

Establish recordkeeping system for enrollment status, opt-outs, contribution history, and employee notices. These records may be audited by Delaware regulators.

Step 4 — Ongoing Compliance

Annual renewal: Review and renew your Delaware EARNS registration or exemption status each year. Confirm your plan still qualifies for exemption if applicable.

New hire enrollment: Enroll all new eligible employees within 30 days of their start date. Add them to payroll deductions and provide required opt-out notices.

Opt-out tracking: Track re-enrollment cycles for employees who previously opted out. Delaware EARNS requires periodic re-enrollment offers even for employees who opted out.

Plan document updates: If you maintain a qualifying private plan, ensure your plan documents remain current, your annual Form 5500 is filed (if applicable), and your plan administrator confirms the plan qualifies as an exemption from Delaware EARNS.

✅ Completed all steps? You're Delaware EARNS compliant. Need help? Book a free compliance review below.

Need Help Getting Compliant?

Our team handles the entire Delaware EARNS compliance process for Delaware employers — from coverage analysis to exemption filing, payroll setup, and employee notices.

Book Your Free Delaware Compliance Check →

Or call: 848-400-4886

Disclaimer: This checklist provides general educational information about Delaware EARNS compliance. It does not constitute legal, tax, or financial advice. Requirements may vary by employer. Consult a qualified advisor for guidance specific to your situation. © 2026 RetirementMandate.com

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Delaware EARNS EmployerCompliance Checklist (2026)