Have you heard about the CalSavers program. Well, California law requires employers that don’t have a company sponsored retirement plan, to participate in CalSavers. It’s a state California’s retirement savings program. The goal is to ensure California workers have a path to financial security in retirement.
So, if you have 5 or more full or part time employees, and you don’t currently offer a retirement plan, such as a 401k or something similar, well then you have to sign up for the CalSavers program.
Here’s how it works, you register your company and upload your employee census. Then you notify your employees about the program – by the way, they have a 30 day window to opt out if they wish. They can, you can’t. If they don’t out, or change their contribution percentage, they will automatically be enrolled at a 5% contribution level.
Once that window is closed, then each payroll you have to deduct the contribution amount and submit the amount using the CalSavers online site.
Obviously, there is a good amount of additional information on the plan, just go to the CalSavers.com website. But, one critical call out – if you have 5 or more employees, the deadline to register on the site is June 30, 2022. So, it’s coming up fast. Be sure to get your business registered right away if you don’t currently offer a retirement plan.
And that’s your HR quickie, for today, April 4, 2022.
If you have questions, or just need some help – and you’re one of our valued clients, well – just reach out to your HR Business Partner.
But, what if you’re not a client? Well, reach out to us anyway…we’re happy to help.