Through the plan, the state would auto-enroll employees who could then set up payroll contributions to a Roth IRA. Employers would forward that money to the state, as they do for taxes.
Tim Langholz is with the National Federation of Independent Business. He says that could be a hassle:
“Saving for retirement should be a matter of personal responsibility, not another regulation put on small businesses."
But Democratic Senate Labor Committee chair John Cherry says it’s relatively simple for businesses:
“You have to submit the payroll, which you already have to do for the state and then you have to list your employees, which because you are deducting your income tax, the state already receives that information as well.”
Over twenty states have an “auto IRA program” according to Pew Charitable Trusts.
