Beginning in January 2022 the CalSavers Retirement Savings Board will impose penalties on employers who have no other retirement program in place, have more than 100 workers, and have not registered for the CalSavers program.
If you are a California employer that offers employees a private retirement plan you are required to register at www.calsavers.com and claim an exemption.
If you are a California employer that does not offer employees a private retirement plan, and you have more than 100 employees, you must comply immediately with this state law and register for the CalSavers Retirement Savings Program. If you do not register, expect penalties to be imposed. Employers will be penalized $250 per employee by the CalSavers Retirement Savings Board with the support of the Franchise Tax Board.
The program was launched statewide on July 1, 2019. There have been dozens of notifications, letters, and emails sent to employers explaining the CalSavers key program features. CalSavers program officials are strongly urging employers to comply immediately. More than 24,000 employers have already registered. If you are one of the employers who have not, CalSavers has service representatives to assist you.
Note that non-compliant employer penalties will NOT stop at $250 per employee. Legislation, passed in 2016, allows for non-compliant employers to be penalized $250 per employee for the first penalty notice. If non-compliance persists another 90 days, an additional $500 per employee will be charged. The total penalty for a non-compliant employer can reach $750 per employee if no action is taken.
Mandated employers must register for CalSavers at www.calsavers.com before their applicable deadline:
September 30, 2020
Was the deadline for businesses with more than 100 employees. It was moved back from June 30, 2020, due to COVID-19.
June 30, 2021
Was the deadline for businesses with more than 50 employees (non-compliance penalties for this group are slated for mid-2022).
June 30, 2022
The deadline for employers with five or more employees.
If you have any questions or would like more information, please contact Therese Cheevers at tcheevers@windes.com or 844.4WINDES (844.494.6337).
