Hotels, motels, restaurants and seasonal businesses in Rehoboth Beach must comply with Delaware EARNS if they meet the 5+ employees threshold — or offer a qualifying plan. Up to $250 per eligible employee per year, capped at $5,000 per year.
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Delaware EARNS covers Delaware employers with 5+ employees that do not offer a qualifying retirement plan. Counting rule: Employs, and during the previous calendar year employed, at least five Delaware W-2 employees (full- or part-time). In business in Delaware for at least six months of the preceding calendar year.
Up to $250 per eligible employee per year, capped at $5,000 per year. The penalty is in force; no public record of assessments yet.
Already passed: All eligible employers (2025-10-15); Newly eligible employers (2026-06-30) — unregistered employers should register or certify an exemption now.
19 Del. C. §§3802(3), 3804, 3805(e) · Official program: earnsdelaware.com · Verified 2026-09-17.
Yes, if the business meets the threshold. Delaware EARNS applies to Delaware employers with 5+ employees that do not offer a qualifying plan. Hotels, motels, B&Bs and restaurants in Rehoboth Beach follow the same rules as any other employer — seasonal operation does not exempt you.
Not automatically. Coverage depends on how Delaware counts employees: Employs, and during the previous calendar year employed, at least five Delaware W-2 employees (full- or part-time). In business in Delaware for at least six months of the preceding calendar year. Seasonal employers can also satisfy the mandate with a SIMPLE IRA or 401(k), which may exclude employees who work fewer than 1,000 hours a year.
Yes. Exempt with a plan under 401(a)/401(k), 403(a)/403(b), SEP (408(k)), SIMPLE (408(p)) (program also lists 403(a) and 457(b)); employers with fewer than five employees also certify. A private plan also gives you a real recruiting benefit for seasonal and year-round staff.
Yes. SECURE 2.0 Act tax credits are available to small businesses with fewer than 100 employees that start a new qualifying retirement plan (the full startup credit applies at 50 or fewer employees; it phases down from 51–100). Credits of up to $5,000/year for 3 years, plus up to $1,000 per employee in employer-contribution credits (phasing down over five years), are available regardless of whether your business is seasonal.
Already passed: All eligible employers (2025-10-15); Newly eligible employers (2026-06-30) — unregistered employers should register or certify an exemption now. Penalty: Up to $250 per eligible employee per year, capped at $5,000 per year. The penalty is in force; no public record of assessments yet. Contact Kandelaki Solutions for a free compliance audit.
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