Reminder: Certain California Employers Without 401(k) Plans Must Register For CalSavers Retirement Program
As of June 30, 2022, employers with at least five California employees must register for the CalSavers Retirement Program if they do not otherwise offer a 401(k) plan to their employees. The CalSavers Retirement Savings Trust Act was passed in 2016 to provide California employees without access to an employer-sponsored 401(k) plan with a retirement program. CalSavers assists with the automatic enrollment of an individual retirement account (IRA) administered by the state of California.
The Act applies to any employer (person or entity), other than the federal or state government, engaged in any business or profession in the state of California, employing at least five California employees. The deadline for registering under the CalSavers Retirement Program varies based on the number of employees. The deadlines for employers without 401(k) plans to register for the CalSavers Retirement Program were:
- Employers with more than 100 California employees – September 30, 2020
- Employers with 51 to 100 California employees – June 30, 2021
- Employers with 5 to 50 California employees – June 30, 2022
Failure to register if required to do so subjects the employer to penalties, which can include $250 per employee for the initial violation and $750 per employee if not remedied. Thus, employers required to register for the CalSavers Retirement Program that have not yet registered should register immediately. For more information visit https://www.calsavers.com or contact your favorite CDF attorney for assistance.