If you’re not sure whether your state is affected, we compiled a full list of current mandates. Some states are already enforcing compliance. Others are rolling out soon.

If you do fall under one of these rules, here are the headaches you’re about to encounter, as well as what you can do to make them less painful.

1. Get Ready for a Lot of Paperwork

Even if your state offers a “simple” solution, it’s rarely seamless:

• You’ll need to register through a state portal

• Upload a full list of eligible employees

• Track enrollment, opt-outs, and contribution settings

This isn’t a set-it-and-forget-it moment. You’re on the hook to keep it updated as people come and go.

2. Guess Who’s Running It

Spoiler: probably you. Or your bookkeeper. Or someone who already has too much on their plate.

State programs still require someone on your team to:

• Upload contribution files every pay period

• Answer employee questions

• Stay on top of emails from state vendors and plan administrators

None of this is rocket science, but it’s enough to eat up hours each month.

3. Your Payroll System Probably Doesn’t Sync

Most state-run plans don’t integrate with your payroll provider. That means you’ll be:

• Downloading files from one system

• Editing them in Excel

• Uploading them into another system

It’s a manual process that increases your odds of making a mistake. It is annoying, yes, but even worse is tripping a compliance violation.

4. The Risk Is Real

Missing a deadline or uploading the wrong file can trigger fines. In some states, it’s $250 per employee for each year you’re out of compliance.

No one’s trying to punish you. But the system isn’t exactly designed to help you, either.

The Bottom Line

You can meet your state’s requirements and support your team without burning yourself out. Whether you go with the state’s default plan or explore other options, the key is to make sure your setup is easy to manage and doesn’t create more overhead than it’s worth.

Skip the stress and the penalties. We’ll help you set up a plan that checks every box.