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The Mandate Monitor

Vermont Saves: what employers must do

In effectChecked November 8, 2026Run by Office of the Vermont State Treasurer

Short answer

Vermont requires employers that don’t offer a qualified retirement plan to register for Vermont Saves, the state’s automatic individual retirement account (auto-IRA), or certify an exemption. In February 2026 a rule change lowered the threshold from 5 employees to 2. Newly eligible businesses had a June 30, 2026 registration deadline, and since October 1, 2026 the maximum fine is $75 per covered employee per year.

Does your payroll handle Vermont Saves? See the free state route and the 5 payroll systems with help docs that cover it.

Vermont Saves deadlines

No future dates on file. Past dates are listed below.

Dates already passed (8)
  • : Maximum penalty rises to $75 per covered employee per calendar year.
  • : Registration deadline for newly eligible employers, including businesses with 2–4 employees and those that had certified an exemption under the old 5-employee threshold.
  • : Program rule lowering the employer threshold from 5 employees to 2 took effect in February 2026; the exact day wasn’t published. (2+ employees)
  • : Maximum penalty rises from $10 to $20 per covered employee (through September 30, 2026).
  • : Enrollment end date for the first group of employers (5 or more employees).
  • : Program opened to employers.
  • : Pilot launched.
  • : Act 43 of 2023 takes effect, creating Vermont Saves.

What employers have to do

  1. Use the Access Code from your Vermont Saves notice to register or certify an exemption by the deadline (at least 30 days after the first notice).
  2. Submit information for all covered employees, adding each new employee no later than 120 days after hire.
  3. After employees’ 30-day opt-out window, start payroll deductions and send contributions for those who stay in.
  4. Keep employee and employer information current, register new hires promptly and apply rate changes.
  5. Don’t contribute (employer contributions aren’t permitted), and don’t advise employees on investments or contribution rates. Employers have no fiduciary role.
  6. If you later adopt a qualified plan, give the program and participating employees at least 60 days’ notice before stopping deductions.

Handling Vermont Saves in payroll

The free route: register directly with the state

You can register and report on your own through Office of the Vermont State Treasurer. You’ll still need your payroll to send the employee contributions each pay period.

Payroll systems with a help document covering Vermont Saves

SystemWhat the documentation saysLink
ADP RUNThe Vermont Saves help center lists a 360-degree integration for ADP Run that runs through Payroll Integrations, a third party that charges employers a monthly fee. Read the program’s help doc, Nov 7, 2026See plans for ADP RUN
GustoGusto’s auto-IRA help article lists Vermont Saves among the state programs that integrate with Gusto through Vestwell, which adds a "Vestwell State IRA" deduction to payroll. Read their help doc, Nov 8, 2026See plans for Gusto
Paychex FlexThe Vermont Saves help center describes a 360-degree integration with Paychex Flex (Select and Pro) that receives contributions from payroll and sends employees’ savings-rate changes back. Read the program’s help doc, Nov 7, 2026See plans for Paychex Flex
QuickBooks PayrollThe Vermont Saves help center describes a 360-degree integration with QuickBooks Online Payroll (a QuickBooks Online plus Payroll subscription) that receives contributions from payroll and sends employees’ savings-rate changes back. That help center lists QuickBooks Online Payroll as supported and doesn’t mention Workforce plans. Read the program’s help doc, Nov 7, 2026See plans for QuickBooks Payroll
Square PayrollThe Vermont Saves help center lists a 360-degree integration with Square Payroll; employers request it by emailing their Square Payroll representative. Read the program’s help doc, Nov 7, 2026See plans for Square Payroll

Listed alphabetically. We may earn a commission from these links; it never decides who’s listed.

How Vermont Saves works

Default is 5% of gross pay into a Roth individual retirement account (IRA) (a traditional IRA is also available). After at least six months in the program, the rate rises by 1% each January until it reaches 8%. Employees can skip an increase, change their rate (1% minimum) or opt out at any time.

No cost to employers, and employer contributions aren’t permitted. State law says employers can’t be required to fund or collect participant fees.

Questions employers ask

Who has to follow Vermont Saves?

Vermont employers (for-profit or nonprofit) with 2 or more employees at any time during a calendar year, counting part-time, seasonal and temporary workers, that don’t offer a qualified retirement plan. The program says employers must have been in business at least 2 years; the statute excludes employers that have only been in business during the current calendar year. Covered employees are 18 or older.

How do employers get an exemption from Vermont Saves?

Employers that offer a 401(k), 403(b), Simplified Employee Pension (SEP) individual retirement account (IRA), SIMPLE IRA or another qualified plan have met the law but must certify their exemption online with the Access Code from their Vermont Saves notice. An employer that offers a qualified plan to any of its employees can’t register for Vermont Saves, even if the plan doesn’t cover everyone. Employers with a qualified plan that never get a notice don’t have to do anything.

What happens if an employer doesn’t comply?

Under 3 V.S.A. § 535, an employer that fails to comply without reasonable cause faces a penalty for each covered employee for each calendar year or part of a year the employee wasn’t enrolled and hadn’t opted out. The maximum is $10 per covered employee before October 1, 2025, $20 from October 1, 2025 through September 30, 2026, and $75 on or after October 1, 2026. Under the program rule, the Treasurer first sends an enforcement notice; penalties can follow if the employer isn’t compliant within 90 days, and can be appealed within 30 days. No penalty applies if the employer didn’t know and exercised reasonable diligence, or if it exercised reasonable diligence and complies within 90 days of when it knew, or with reasonable diligence would have known, of the failure. Paying a penalty doesn’t satisfy the obligation to register or certify.

Everything employers in Vermont must do ·Retirement mandates in every state

Sources

  1. 3 V.S.A. ch. 18 (§§ 531–538); Vermont Saves Program Rule (CVR 03-000-003)
  2. Employer program details and registration deadline, Vermont Saves (Office of the Vermont State Treasurer) (read Nov 7, 2026)
  3. Vermont Saves overview, eligibility and penalty schedule, Office of the Vermont State Treasurer (read Nov 7, 2026)
  4. Contribution rates and annual increase, Vermont Saves (read Nov 7, 2026)
  5. 3 V.S.A. § 531, Definitions, Vermont General Assembly (read Nov 7, 2026)
  6. 3 V.S.A. § 532, Program establishment and contributions, Vermont General Assembly (read Nov 7, 2026)
  7. 3 V.S.A. § 535, Penalties, Vermont General Assembly (read Nov 8, 2026)
  8. Vermont Saves Program Rule (updated February 2026), Office of the Vermont State Treasurer (read Nov 7, 2026)
  9. Rule 25P039, Vermont Saves Program Rule (adopted), Vermont Secretary of State (read Nov 7, 2026)
  10. Treasurer highlights Vermont Saves eligibility expansion (May 7, 2026), Office of the Vermont State Treasurer (read Nov 7, 2026)
  11. Vermont Saves surpasses $8.02 million as expanded access brings in more small businesses (June 25, 2026), Office of the Vermont State Treasurer (read Nov 7, 2026)
  12. Economic Empowerment Division updates to Senate Economic Development (April 2025 slides), Office of the Vermont State Treasurer (via Vermont General Assembly) (read Nov 7, 2026)