Paychex Supports RISE Act to Help Micro-Businesses Offer Employee Retirement Plans
24 10월 2023 - 11:00PM
Business Wire
Rep. Tenney (R-NY) and Rep. Kildee (D-MI)
introduce legislation incentivizing businesses with 1-9 employees
to adopt retirement plans
Rep. Claudia Tenney (R-NY) and Rep. Dan Kildee (D-MI) have
introduced H.R. 6007 – the Retirement Investment in Small Employers
(RISE) Act – bipartisan legislation that would allow micro-sized
businesses with 1-9 employees to realize full retirement plan
startup tax credits and benefits originally offered in SECURE Act
2.0. Paychex, Inc., the largest 401(k) recordkeeper in the U.S. by
total number of plans, supports the passage of this legislation,
which would help smaller businesses receive incentives similar to
those that larger businesses currently receive. Today, the typical
costs for employers with fewer than 10 employees to establish a
defined contribution plan are higher than the startup tax credits
available to those businesses under existing law.
The RISE Act from Rep. Claudia Tenney (R-NY) and Rep. Dan Kildee
(D-MI) would increase the minimum allowable tax credit from $500 to
$2,500 and, as an incentive to encourage low-income workers to save
for retirement, the legislation would require employers to offer
the Saver’s Match to their employees to receive the tax credit.
This would offer employees of micro-sized businesses similar
retirement savings opportunities as larger businesses.
“All businesses, regardless of size, deserve the same
opportunity and access to tax credits to help offset the costs of
offering a retirement plan to their employees,” said Michael
Majors, Paychex vice president of HR Solutions. “Paychex is proud
to endorse the RISE Act to expand tax credits for micro-sized
businesses, which provides a clearer pathway for more of the
smallest businesses to offer retirement plans and helps to solve
the country’s retirement crisis.”
“Congress must empower and reaffirm our commitment to small
businesses across the country by taking steps to grant them a
competitive edge in our economy,” said Congresswoman Tenney. “I
introduced the Retirement Investment in Small Employers Act, along
with Congressman Kildee, to enable micro-businesses across NY-24
and the nation to offer their employees robust retirement plans and
allow their employees to save for the future. I remain committed to
advocating for tax policies that work in favor of our small
businesses and hardworking families.”
“In mid-Michigan, small businesses support thousands of
good-paying jobs and fuel our local economy,” said Congressman
Kildee. “I am proud to work to introduce legislation with
Congresswoman Tenney to help more employers set up retirement
plans, ensuring more Michigan workers can save for retirement. This
bipartisan bill is a win for small business owners and workers
alike.”
Upon its original passage in 2019, the SECURE Act became the
most significant retirement legislation in nearly 15 years. Among
its many provisions were a series of tax credits aimed at
encouraging retirement plan establishment for small and
medium-sized businesses. For employers with 100 or fewer employees,
the 50% credit for plan startup costs was a minimum of the greater
of $500 or $250 per non-highly compensated employee eligible for
the plan, capped at $5,000.
Lawmakers enacted SECURE Act 2.0 in 2022, enhancing the startup
tax credit by allowing 100% of retirement plan set-up and
administrative costs to be claimed for new plans, up to $5,000 per
year. SECURE 2.0 did not amend the per-employee formula to
calculate the amount an employer can claim in retirement plan
start-up credits – a key change in the proposed legislation. Rep.
Tenney (R-NY) and Rep. Kildee (D-MI) are advocating for an increase
in the minimum allowable startup tax credit to ensure that
micro-sized businesses can fully benefit from the tax incentives
granted to small businesses under SECURE Act 2.0.
In 2024, Congress is expected to consider technical corrections
to SECURE Act 2.0. It is anticipated that the RISE Act may be
considered, as well.
About Paychex
Paychex, Inc. (Nasdaq: PAYX) is an industry-leading HCM company
delivering a full suite of technology and advisory services in
human resources, employee benefit solutions, insurance, and
payroll. The company serves approximately 740,000 customers in the
U.S. and Europe and pays one out of every 12 American private
sector employees. The more than 16,000 people at Paychex are
committed to helping businesses succeed and building thriving
communities where they work and live. Visit paychex.com to learn
more.
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Media Chris Muller Paychex, Inc. 585-338-4346
cmuller@paychex.com @Paychex
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