Participation in the Hoosier Crossroads Retirement Program is MANDATORY for employers with at least five employees to participate who have been in business for two years and do NOT have a current retirement. Here are some other provisions that would impact small business owners:

1. Administrative Burden on Small Businesses: The bill also mandates additional administrative responsibilities to manage payroll deductions and compliance, which could be cumbersome for small businesses with limited administrative resources.

2. Financial Impact: Although the bill mentions potential grants or incentives to help defray costs for small businesses, the immediate costs associated with setting up the program, administering contributions, and ensuring compliance could lead to financial strain. Small businesses often operate on tight budgets, and these additional costs, such as potential penalties for noncompliance and administrative fees, could impact their financial health negatively.

3. Penalties and Enforcement: The bill includes provisions for penalties up to $5,000 per year for noncompliance, which could pose a significant financial risk to small businesses. The process to obtain exemptions or comply with the program may also introduce uncertainty and a potential fear of fines, discouraging entrepreneurship or expansion.

4. Complexity of Participation: Small business owners may struggle to understand and implement the requirements of the retirement program. The potential for confusion could lead to unintended noncompliance or errors in payroll processing, which further burdens small business operations.

5. Deterrent to Job Creation: Knowing the obligations and penalties associated with this program could discourage small businesses from hiring additional employees, thereby limiting job creation and economic growth within the state. 

In conclusion, while the intention of increasing retirement savings coverage is valid, the actual execution as outlined in the bill would impose significant hardships on small businesses that could outweigh the potential benefits. 

Lawmakers need to know the potential impact of SB 513 on your small business! Please reach out to your legislators and encourage them to vote NO on this bill.

SO… WHAT’S YOUR STORY?

“Your story” is what your legislators need to hear. Your story is the example your business serves of the impact these issues have on real life. Legislators are more likely to read, respond, and react to custom messages.

Tell your legislators what they need to hear about how this new mandate would affect your business. Before legislators vote, you want them to picture your business before they make any decisions. Please use the available space to write a personalized message to your legislators, sharing your business name and story.

Thank you for taking action!