Payroll Benefit: no Roth IRA?

[Marta]

CalSavers (Roth IRA)

I have a small business in California and use Square Payroll. Per the new mandate in this state Employers with five or more employees must participate in CalSavers if they do not already have a workplace retirement plan. I registered my business and set up our employees. (They have the ability to opt-out). However, when I went to add the benefits to Square Payroll, there was no option for a "Roth IRA". There are lots of other types of benefits to choose from, but not the one I needed. I called Square payroll. They said to talk to my accountant. He couldn't do anything. 

Now, I need to find and sign up for a different retirement plan for my business and most likely pay for the plan. Cal Savers was free to sign up with and my understanding was that fees were super low. 

I'm frustrated that Square Payroll is unable to accommodate the state sponsored retirement program. (There's even a square article that mentions setting up a Roth IRA for small business owners. https://squareup.com/us/en/townsquare/retirement-savings-smb )

Am I the only one? 

[JJ_]

I am sure you might not be the only one in this situation @Marta.  I recommend you submit a Feature Request here. This will help our product team get visibility and track other Sellers with similar interest in your request. 

Important: When submitting a request, make sure to include the desired feature, and provide the details of how this feature will help your business succeed (how would you use it and what you expect from it).

[fejjabspa]

Are there any updates on this?

[JJ_]

Hey there @fejjabspa

I was able to gather this information from our Payroll Team that I hope is relevant to you.

You can sign up for CalSavers directly through the state to offer this benefit to their employees for free.

If you have5 or more employees you are required to give employees access to CalSavers, unless you offer a company-sponsored retirement plan, like a 401(k) plan through Square Payroll’s third-party integration with Guideline.

If employees opt into the CalSavers program, you can set up a benefit deduction in your team’s payroll profile to withhold contribution amounts from their paychecks. To do so:
 

1. Visit the Payroll Team tab in the Payroll section of your online Square Dashboard and select an employee’s name.
2. Click Add Benefit > Create New.
3. Enter a plan name as you’d like it to appear in your employee’s pay stubs. For example, CalSavers or 401(k). Note: The benefit name can’t be edited retroactively.
4. Click Select and choose Roth 401k Retirement Plan.
5. Specify the details for your employee’s deductions such as the calculation method and any deductions to date. Note: Leave the Company Contributions section blank, as only your employees will make contributions to their CalSavers retirement program.
6. Click Save.

If creating a manual deduction, you must submit each paycheck’s contribution amount to CalSavers within 7 days of taking the deduction out of the participating employee’s paycheck. 

Square Payroll does not complete this payment on behalf of employees or employers.

I hope this information is helpful!