Common Questions About NY Secure Choice
How many employees trigger the New York mandate?
Businesses with 10+ W-2 employees are required to comply with NY Secure Choice. Only W-2 employees count — 1099 contractors do not.
What is the penalty for non-compliance?
Employers face fines of $250 per employee per year for non-compliance with NY Secure Choice. Employers with 30+ employees who missed the March 18, 2026 deadline are already subject to enforcement.
Can I be exempt if I already have a 401(k)?
Yes. If your business already sponsors a qualified retirement plan (401k, 403b, SIMPLE IRA, SEP-IRA, or pension), you can apply for a Certificate of Exemption through the NY Secure Choice portal at nysecurechoice.com.
Is it better to enroll in the state plan or get a private plan?
Both options satisfy the mandate. The state plan (NY Secure Choice) has no employer setup cost but offers limited contribution limits ($7,000/year IRA limit). A private 401(k) allows contributions up to $23,500/year plus employer match, and may qualify for up to $15,000 in SECURE 2.0 federal tax credits. Many small businesses find a private plan offers better value long-term.