The bill would let eligible tax-exempt small employers, including certain nonprofits, claim tax credits for starting a pension plan and setting up automatic retirement plan enrollment. The credits would be applied against the employer’s payroll tax and could not exceed the amount of payroll tax paid. The changes would apply to taxable years beginning after December 31, 2024. The bill also directs transfers from the federal general fund to Social Security trust funds to make up for reduced Treasury revenues.
If you run an eligible tax-exempt small employer, you may be able to use these credits to offset payroll taxes related to starting a retirement plan or adding automatic enrollment. The credit is limited by the employer’s payroll tax. The bill does not describe benefits for individual workers.
The bill provides for transfers to Social Security trust funds equal to the reduction in Treasury revenues. No publicly available information gives an estimated amount.
No publicly available information.
No publicly available information.