Colorado Secure Savings Program: What You Need to Know & A Better Alternative

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:

• Automatic enrollment and payroll deductions for employees.
• Employer responsibility is limited to administering deductions, but non-compliance can result in penalties.
• Employees can adjust contributions or opt out.

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:

• Streamlined Setup: The integration with Gusto automates the process, reducing the burden on employers while ensuring compliance with federal regulations.
• Affordable Retirement Plans: Guideline offers low-cost 401(k) options with no investment fees for employees—giving you more flexibility in offering better benefits.
• Automatic Payroll Sync: The Gusto-Guideline integration eliminates manual payroll entries, ensuring contributions are timely and accurate.
• Comprehensive Features: With Guideline, you can offer matching contributions and provide a more robust and scalable retirement plan, positioning your business as an attractive employer.

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.