In 2016, California Governor Brown signed Senate Bill 1234 requiring the state’s Secure Choice Retirement Savings Investment Board to develop a workplace retirement savings program known as CalSavers for private-sector workers whose employers do not offer a retirement plan.
As a result, any employer with five or more employees must provide a retirement plan for their workers or register for CalSavers and facilitate employees’ contributions to individual retirement accounts. Deadlines for compliance vary according to the size of the business. An “eligible employee” is defined as anyone 18 years or older, working in California, and receiving W-2 wages.
Size of Business Deadline
- Over 100 employees: September 30, 2020
- Over 50 employees: June 30, 2021
- Five or more employees: June 30, 2022
Businesses who fail to comply with the CalSavers mandate could be subject to penalties of $250 per employee if the employer does not comply within 90 days of receiving a notice requiring registration and $500 per employee if the employer does not comply with 180 days of receiving the notice may be imposed.
If you have over 100 employees and currently offer a company-sponsored retirement plan, you must file an exemption by September 30, 2020.
For more information please visit the CalSavers website.
As a Vensure Employer Services partner, we can assist you in setting up a retirement plan through Slavic 401k Retirement Savings. This 401(k) plan is designed especially for you. Vensure will administer the plan, including monitoring eligibility, setting up deductions, and funding the employee accounts. Slavic offers investment options and comprehensive administration.
If you are interested in receiving information on Vensure’s multiple employer retirement plan, please complete the Plan Evaluation Survey and return to email@example.com. A Slavic representative will contact you.