This page covers one thing: how RetireReady NJ penalties are calculated and what happens after a penalty notice. For who must comply, the registration deadlines and how to get exempt, see the RetireReady NJ requirements and deadlines page.
The penalty schedule in the statute
The penalties are set by N.J.S.A. 43:23-31 (section 19 of P.L.2019, c.56, as amended by P.L.2025, c.379). They apply to an employer that fails, without reasonable cause, to enroll employees within the time the program allows. The amount depends on how many calendar years a violation has occurred:
| Calendar year with a violation | Penalty |
|---|---|
| First year | Written warning from the Department of the Treasury |
| Second year | A fine of $100 (one amount, not per employee) |
| Third and fourth years | $250 for each employee who was not enrolled |
| Fifth year and later | $500 for each employee who was not enrolled |
A separate penalty applies to an employer that collects employee contributions but does not send any part of them to the program: $2,500 for a first offense and $5,000 for the second and each later offense.
Worked examples
A business with 12 employees who were not enrolled
- Year one: written warning, no fine.
- Year two: $100.
- Years three and four: 12 × $250 = $3,000 each year.
- Year five: 12 × $500 = $6,000.
Five straight years out of compliance would add up to $100 + $3,000 + $3,000 + $6,000 = $12,100.
A business with 30 employees who were not enrolled
- Year two: $100.
- Years three and four: 30 × $250 = $7,500 each year.
- Year five: 30 × $500 = $15,000.
If the business also collected contributions from paychecks and failed to send them to the program on two occasions, the remittance penalties would add $2,500 + $5,000.
These are the maximum amounts in the statute. The program has not published any penalty assessments so far.
What happens after a penalty notice
- Notice of proposed penalty. The Department of the Treasury sends a notice stating the proposed total and, for per-employee penalties, the number of employees it is based on.
- 90 days to protest. You can file a written protest on the department’s form, setting out your grounds. If you do not protest within 90 days, the penalty is deemed assessed.
- Reconsideration and hearing. If you protest in time, the department reconsiders the penalty and grants you a hearing, then issues a written decision with its findings. That decision is final.
- Demand for payment and payment plan. Once a penalty is assessed, the department sends a demand for payment and must offer a payment plan.
- Refunds. An employer that overpaid can file a written claim for a refund.
Whatever stage you are at, the fastest way to stop the clock is to register with RetireReady NJ or certify an exemption with your Access Code. The program’s employer line is 855-929-4387 (Monday to Friday, 9am to 6pm ET).
Avoiding the penalty with your own plan
A qualified plan such as a 401(k) or SIMPLE IRA exempts you from RetireReady NJ once you certify the exemption. Credits can offset much of the startup cost for eligible employers. See who must comply and the current deadlines, or book a free 15-minute audit.
Sources: N.J.S.A. 43:23-31 as amended by P.L.2025, c.379 (approved January 20, 2026); RetireReady NJ employer pages at nj.gov/treasury/securechoiceprogram. Informational only, not legal advice.