 With the growing focus on retirement savings, Colorado has implemented the Colorado Secure Savings Program, aimed at expanding access to retirement options for employees without an employer-sponsored plan. While this program is well-intentioned, it adds another layer of responsibility for small businesses that may already be navigating complex payroll and compliance requirements.
What is the Colorado Secure Savings Program? The Colorado Secure Savings Program is a state-mandated initiative requiring employers with five or more employees to provide access to a Roth IRA via automatic payroll deductions if they don’t already offer a retirement plan. While employers aren’t required to contribute directly, they must facilitate payroll deductions and manage the administrative process. Key points for employers:
Our Take: The Burdensome Side of Compliance While we recognize the good intentions behind the Colorado Secure Savings Program, we understand the added pressure it places on small businesses. Managing compliance, while juggling day-to-day operations, can be overwhelming—especially when there are more robust and cost-effective options out there. A Better Solution: Guideline + Gusto Integration For employers looking to offer a retirement plan without the headaches of managing a state-mandated program, we highly recommend using Guideline, which integrates seamlessly with Gusto, our preferred payroll platform. This pairing provides a more comprehensive, efficient, and cost-effective solution than the basic Roth IRA offered by the state. Here’s why Guideline is the better choice:
Why Choose Guideline? While the Colorado Secure Savings Program offers a basic solution, Guideline provides far more value and flexibility, making it a superior choice for employers who want to provide meaningful retirement benefits while reducing their administrative load. With the integration between Guideline and Gusto, everything is managed in one place—automatically and generally at a lower cost of administration. In short, if you're a business owner navigating this new mandate, let Cornbelt Financial help you find a better way forward. We’ve worked hard to identify the best tools and processes, and Guideline with Gusto is our recommended solution for simplifying compliance while offering a valuable benefit to your employees.  We want to share some crucial information about the Corporate Transparency Act (CTA) and its impact on the reporting of Beneficial Ownership Information (BOI). This new regulation affects a wide range of business entities and aims to increase transparency in corporate ownership.
If you own a Limited Liability Company (LLC), Incorporated Business (Inc), or any other type of legal entity, the CTA likely applies to you. As of January 1, 2024, the Act requires certain domestic and foreign companies conducting business in the United States to report their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN). Under the CTA, FinCEN is authorized to collect BOI and share it with authorized government agencies and financial institutions. This is conducted in accordance with stringent safeguards and controls outlined in the Anti-Money Laundering Act of 2020 (AML Act) to prevent the concealment of illicit funds or property in the United States. BOI reports necessitate reporting companies to identify the entity, company applicants, and their beneficial owners who control at least 25% of the Company stock or membership interests. Required information includes names, birthdates, addresses, and images of acceptable identification documents. For businesses established in 2024, compliance involves filing the BOI report within 90 days of formation. Existing businesses created before 2024 have until December 31, 2024, to fulfill this requirement. To familiarize yourself with the specifics and obligations of BOI reporting, please refer to the official FinCEN Small Business Compliance Guide accessible via this link: BOI Small Business Compliance Guide. File BOI reports at: https://www.fincen.gov/boi If you would like Cornbelt Financial to file the BOI report on your behalf, please reach out to us at [email protected]. We will then contact you to request any missing information. BOI reports prepared and filed by Cornbelt Financial will get billed a minimum of $200 or our applicable hourly rate of $200/hour. We're dedicated to helping our clients navigate these regulations to ensure compliance, so please reach out if you require assistance. Colorado TABOR Refund Denied? Essential Information & 2025 Updates from the Department of Revenue10/18/2024
 Colorado’s Taxpayer’s Bill of Rights (TABOR) Amendment, passed by voters in 1992, restricts the amount of revenue state and local governments can collect and spend without voter approval. When revenue exceeds the limit, TABOR mandates that the excess be refunded to taxpayers—unless voters approve a different use for the surplus.
TABOR Refund Issues: What to Do if Your Claim Was Denied Recently, some taxpayers who were eligible for their TABOR refunds have had their claims denied by the Colorado Department of Revenue. If you are one of these individuals, don’t worry — please provide us with the notice. We will help you determine whether the denial is accurate and assist in rectifying the issue if it was in error. Eligibility for the 2023 TABOR Refund To be eligible for the TABOR refund when filing your 2023 return, you must have met the following requirements: File a 2023 DR 0104 by April 15, 2024, if you:
File a 2023 DR 0104 by October 15, 2024, if you:
Looking Ahead: 2025 TABOR Refunds For 2025, Colorado collected an excess of $1.4 billion in revenue, which will be refunded to taxpayers. The Colorado Legislative Council estimates that these refunds will range from $181 to $1,142, depending on income levels and filing status. There has been ongoing discussion about potentially reducing tax rates as part of the refund process, but so far, none of these conversations have resulted in concrete action. In summary, if you have experienced a denial of your refund, remember to pass along any notices to us so we can assist you in resolving the issue. As we look ahead to 2025, taxpayers can anticipate another round of TABOR refunds, with refund amounts dependent on individual income levels and filing status. For any questions or to seek assistance with your TABOR refund, feel free to reach out to us. We’re here to help guide you through the process. |
AuthorAdam Carr, MBA, EA Archives
November 2024
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