Are employers required to offer retirement plans?
In Washington, employers are not required to offer retirement plans. However, it is important to note that there are some employers in the state who may be required to offer retirement plans depending on their size. For instance, the Washington State Public Employment Retirement System (PERS) requires employers with five or more eligible employees to join the system and provide them with retirement benefits. For employers who are not subject to the Washington State PERS, there is no legal requirement for them to offer a retirement plan, although many employers choose to do so as a way to attract and retain quality employees. Typically, these employers will offer a 401(k) plan or similar retirement plan as part of the employment package. Employers should note that offering a retirement plan is not only helpful in attracting and retaining quality employees, but it can also be beneficial for them when it comes to taxes. Employers can receive a tax credit of up to $500 for the cost of setting up and administering a retirement plan. In general, employers in Washington are not legally required to offer retirement plans. However, many employers choose to do so in order to attract and retain quality employees and to benefit from tax credits.
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