State-Sponsored Retirement Program in Maryland

Maryland has implemented MarylandSaves - a state-sponsored retirement savings program for construction workers. 

MarylandSaves

MarylandSaves is a state-sponsored retirement savings program designed to help private-sector employees save for retirement, especially those who don't have access to employer-sponsored retirement plans.

Construction companies in Maryland are required to participate in MarylandSaves if they meet the following criteria:

• Business Duration: The business must have been operating for at least two calendar years.  
• Employee Count: The business must have at least one W-2 employee.  
• Payroll System: The business must use an automated payroll system.  
• Lack of Employer-Sponsored Retirement Plan: The business must not offer a qualified retirement plan (like a 401(k) or 403(b)).  

Employee Eligibility:

• Age: Employees must be 18 years of age or older.  
• Maryland Income: Employees must receive W-2 wages from Maryland employment.  

Employer Responsibilities:

As an employer, you are responsible for:

• Registering your business with the MarylandSaves program.
• Enrolling eligible employees in the program.
• Withholding employee contributions from payroll.
• Remitting employee contributions to the program.
• Providing information to employees about the program.

Failure to comply with these requirements may result in penalties.

Deadline

Employers must register and begin sending employee payroll contributions, or claim their waiver by December 31, 2025 to receive their SDAT filing fee waiver.

Note: Under Maryland law, most Maryland employers are required to offer their employees some sort of retirement savings plan. Employers who register and submit payroll contributions or claim their waiver before December 31 each year, will save $300 on their next year's SDAT annual report filing fee.

This information has been referenced from the following sites: 1, 2