November 15, 2025
Maryland’s new retirement mandate is now fully in effect, and it applies to more small businesses than many owners realize. The good news? If you follow the steps correctly, you can earn a $300 SDAT Annual Report Filing Fee Waiver each year.
Below is a clear breakdown of who must comply, what to do, the key deadlines, and the details business owners often miss.
Who Must Comply With MarylandSaves?
A Maryland-registered business must participate in MarylandSaves, or certify an exemption, if it:
- Has been operating for two full calendar years
- Has at least one W-2 employee
- Uses an automated payroll system
If these conditions apply, you must either offer a qualified retirement plan or enroll employees in the MarylandSaves program.
What Maryland business owners must do each year
If you already offer a retirement plan and use automated payroll
To stay compliant and receive the $300 SDAT fee waiver, you must:
- Certify your exemption on the MarylandSaves website.
- Claim your annual fee waiver at https://www.marylandsaves.org/claim-fee-waiver/ by December 31.
These steps must be completed every year.
If you offer a retirement plan but do not use automated payroll
You must complete the annual exemption certification, but you do not qualify for the fee waiver.
If you do not offer retirement benefits and use automated payroll
You must enroll your employees in MarylandSaves. As long as your business is registered and participating by December 31, the $300 SDAT fee waiver is automatically applied.
Missing the deadline means missing the waiver, no exceptions.
What Is the MarylandSaves program?
MarylandSaves is a state-run retirement savings program designed to give small businesses an easy, low-cost way to offer employees a retirement option without administering their own plan. Here’s what business owners need to know:
Roth IRA structure
This means:
- Funded with after-tax dollars
- No employer contributions
- No employer fees
- Simplified payroll processing
IRS income limits still apply to employees.
Automatic enrollment
Employees are enrolled automatically at the default contribution rate and may opt out or change their contribution after creating their account.
Employer responsibilities
Even though it’s low-maintenance, employers must:
- Add new employees on time
- Ensure payroll deductions are processed and transmitted
- Keep employee information updated
Eligibility rules
- Part-time and seasonal W-2 employees must be included unless they opt out.
- 1099 contractors are not included.
Contribution limits
Employees must follow federal Roth IRA contribution limits, which apply across all IRAs they hold.
Flexibility to switch plans
Businesses may adopt a private retirement plan at any time. Simply certify exemption the next year and you’re no longer required to participate in MarylandSaves.
Annual deadline
Whether certifying an exemption or participating in the program, the deadline to qualify for the $300 SDAT waiver is December 31 each year.
Why MarylandSaves matters to small businesses
Retirement benefits have become a key differentiator for employee retention and recruitment. MarylandSaves gives small businesses a simple, cost-free way to meet legal requirements and offer a benefit employees value while also saving $300 annually through the SDAT fee waiver.
Need help navigating MarylandSaves?
Whether you’re unsure how the rules apply to your business, need help with exemption certification, or want to explore whether a private retirement plan makes more sense, our team is here to guide you through Maryland’s requirements. For additional information, visit MarylandSaves.com or reach out to us for personalized assistance.