Skip to content
The Mandate Monitor

RetirePath Virginia: what employers must do

In effectChecked November 8, 2026Run by Commonwealth Savers (formerly Virginia529)

Short answer

Virginia requires employers with 5 or more eligible employees, at least two years in business and no qualified retirement plan to register for RetirePath Virginia, a state-run Roth individual retirement account (IRA) program, or certify an exemption. The threshold dropped from 25 to 5 employees on July 1, 2026, and part-time workers now count; employers newly eligible in 2026 had deadlines of September 30 (10–24 employees) or October 30, 2026 (5–9 or 25+). Employers that miss their deadline can face a penalty of up to $200 per eligible employee per year.

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

RetirePath Virginia deadlines

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

Dates already passed (5)
  • : Registration deadline for employers newly eligible in 2026 with 5–9 employees.
  • : Registration deadline for employers newly eligible in 2026 with 25 or more employees. Employers eligible before 2026 are already past their deadline.
  • : Registration deadline for employers newly eligible in 2026 with 10–24 employees.
  • : Expansion took effect: the threshold fell from 25 to 5 eligible employees and the 30-hour requirement was removed, so part-time workers count and must be enrolled.
  • : RetirePath opened statewide in June 2023 (exact day not published) after a pilot, covering employers with 25 or more eligible full-time employees working at least 30 hours a week.

What employers have to do

  1. Register at retirepathva.vestwell.com with your Employer Identification Number (EIN) and the Access Code from your notice by your deadline, or certify an exemption.
  2. Upload your roster of eligible employees. RetirePath contacts them directly; they have 30 days to opt out or adjust their account.
  3. Start payroll deductions and submit contributions each pay period, no later than 10 business days after the money is withheld.
  4. Add new eligible hires as soon as possible and within 60 calendar days of their start date.
  5. Keep the roster current, and stay neutral: employers may not contribute to, endorse or promote the program.

Handling RetirePath Virginia in payroll

The free route: register directly with the state

You can register and report on your own through Commonwealth Savers (formerly Virginia529). You’ll still need your payroll to send the employee contributions each pay period.

Payroll systems with a help document covering RetirePath Virginia

SystemWhat the documentation saysLink
ADP RUNThe RetirePath Virginia 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 RetirePath Virginia 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 RetirePath Virginia 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 RetirePath Virginia 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 RetirePath Virginia 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 RetirePath Virginia works

Default 5% of total pay into a Roth individual retirement account (IRA), deducted after tax. After the account has been open more than 180 days, the rate rises by 1 percentage point each January 1 until it reaches 10%. Savers can opt out of increases, change the rate in 1% steps, or opt out entirely.

No employer fees. Employers cannot contribute or match, are not fiduciaries of the program, and have no liability for employees’ participation or investment decisions (Va. Code § 2.2-2751).

Questions employers ask

Who has to follow RetirePath Virginia?

For-profit and nonprofit Virginia employers that had 5 or more eligible employees (age 18 or older and receiving wages, full- or part-time) for the period ending December 31 of the prior year, have operated for at least two years, and don’t offer a qualified plan. Temporary or seasonal employees who work 90 days or less a year don’t have to be enrolled. Government employers and state-recognized tribal organizations are exempt.

How do employers get an exemption from RetirePath Virginia?

Employers that offer a 401(a), 401(k), 403(a), 403(b), Simplified Employee Pension (SEP) 408(k), SIMPLE individual retirement account (IRA) 408(p) or 457(b) plan, or are otherwise not eligible, certify an exemption online at retirepathva.vestwell.com/register/exempt using the Access Code from their RetirePath notice. A payroll deduction IRA does not count as a qualified plan.

What happens if an employer doesn’t comply?

Employers that don’t register or certify an exemption by their deadline can face an annual penalty of up to $200 per eligible employee (Va. Code § 2.2-2747(3)(i)). An employer that withholds contributions but fails to remit them may also violate federal and state labor laws (§ 2.2-2751(F)).

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

Sources

  1. Va. Code §§ 2.2-2744 to 2.2-2757 (as amended by 2026 Va. Acts chs. 84 and 85)
  2. Employers: registration deadlines and eligibility, RetirePath Virginia (read Nov 7, 2026)
  3. FAQs (July 1, 2026 expansion, penalties, default rate, new hires), RetirePath Virginia (read Nov 7, 2026)
  4. Commonwealth Savers 2026 annual status slides (RetirePath history), Commonwealth Savers (presented to JLARC) (read Nov 7, 2026)
  5. Va. Code § 2.2-2744 (eligible employer and employee definitions), Virginia General Assembly (LIS) (read Nov 7, 2026)
  6. Va. Code § 2.2-2747 (penalty cap of $200 per eligible employee), Virginia General Assembly (LIS) (read Nov 7, 2026)
  7. Va. Code § 2.2-2751 (mandatory participation, remittance, employer liability), Virginia General Assembly (LIS) (read Nov 7, 2026)