Virginia Saves Act (RetirePath): What Employers Need to Know
In April 2021, Virginia enacted the Virginia Saves Act, establishing RetirePath Virginia, a state-facilitated retirement savings program designed to help private-sector employees build financial security through automatic payroll deductions.
For Virginia employers, this program changes the compliance landscape — and it’s already in effect. Here’s what you need to know to stay compliant and how PeopleWorX helps small and midsize businesses like yours navigate it with ease.
What Is the Virginia Saves Act (RetirePath)?
The Virginia Saves Act (House Bill 2174) requires eligible employers to provide their employees access to a retirement savings option if they don’t already offer one. The program is administered by the Virginia College Savings Plan and operates as an automatic-enrollment Individual Retirement Account (IRA).
Program Highlights:
- Launch Date: July 1, 2023
- Full Implementation: February 15, 2024
- Compliance Deadline: February 15, 2024
Who Must Comply
Under the law, participation is mandatory for:
- Employers with 25 or more employees
- In business for at least two years
- Who do not offer a qualified retirement plan such as a 401(k)
Employees must be:
- At least 18 years old
- Working 30+ hours per week
What Employers Must Do
Employers are required to:
- Automatically enroll eligible employees at a 5% contribution rate
- Increase contributions by 1% annually (up to 10%)
- Submit timely payroll deductions to RetirePath
- Maintain accurate payroll records and comply with plan reporting
💡 Non-Compliance Penalties:
$200 per employee, per year of non-compliance.
What It Means for Small Businesses
For small businesses, compliance adds one more layer of administration, but that’s where PeopleWorX can help.
We simplify your payroll and compliance workflows so you can meet RetirePath requirements without additional stress or risk. Our platform integrates with state reporting mandates, while your dedicated account representative helps ensure your setup and submissions are correct from day one.
The PeopleWorX Advantage
Technology with a Human Touch
Automated payroll deductions and reporting tools, backed by a real person who knows your business.
Dedicated Support
No call centers or ticket queues. You get a single, named representative who helps you stay compliant, manage setup, and resolve issues quickly.
Future-Ready Payroll
As states expand mandatory benefit programs, our compliance engine keeps your business ahead of every update—whether it’s retirement, paid leave, or wage transparency laws.
How We Help Virginia Employers
✅ Automate RetirePath contributions through payroll
✅ Simplify setup and reporting with expert guidance
✅ Avoid penalties through proactive compliance support
✅ Gain time back to focus on your people and operations
PeopleWorX helps Virginia employers confidently navigate compliance requirements with smart payroll technology and dedicated HR expertise.
👉 Talk to an expert today about simplifying your payroll and compliance management.