Waiting for Employee Enrollment
After employee information is added, your employees will be sent an invitation to join the program and set up their account - or opt out if they prefer not to participate. Each employee will have 30 days to customize their account or opt out before payroll contributions are expected to begin. If your employee does not act within 30 days, they will be automatically enrolled in Illinois Secure Choice with the standard contribution rate and investment funds.
This 30-day period is important as it gives you an opportunity to complete a few tasks in preparation for submitting employee contributions.
What can you do while you wait for employees to take action?
While there are no required actions for you during this period, we recommend you take a few proactive steps to be ready for when it’s time to submit contributions.
- Send a communication to your employees to alert them that your company is participating in Illinois Secure Choice. This is optional but most employers say that it helps employees understand and prepare for Illinois Secure Choice.
- If your employee mentions to you that they did not receive a Welcome packet within by 7 days of you adding their information, open the employee’s profile and resend the information.
- Get a head start on your initial saver contribution and add the Illinois Secure Choice deduction within your bookkeeping or payroll software/file. The new payroll deduction should be built with the following characteristics:
- Roth IRA (post-tax)
- 5% default deferral rate (no dollar amounts). (Note: Based on your employees’ decision, you may need to change this percentage after the 30-day opt out period is over. Set up Deductions
- Contributions are calculated from the gross income with the amount deducted after taxes
- Not reportable on W2's
- No employer matching
- If you use a payroll solution such as a payroll company or software to manage employee payroll, now is a good time to make this connection.