The deadline for private-sector employers who do not have a retirement program to enroll in CalSavers Retirement Savings Program (CalSavers) is soon approaching. No later than June 30, 2022, employers with 5 or more employees must enroll for this program on the state-run website at no cost to the employer or request an exemption.
CalSavers was made available to Californians in order to provide a way for employees to save for retirement with little involvement by the employer. This program has been rolling out slowly over the past two years with the smallest employers being the last subject to these deadlines for enrollment. While employee participation is voluntary, employers must still register on the CalSavers website for employees to participate as required now by California law. Employees can opt in or out at any time, but employees do need to take action as they will be auto-enrolled after 30 days of the employer registration if they do not opt out.
Employers should note that there are monetary fines for failing to allow eligible employees to participate. As a result, it is important that employers, if you have not already enrolled your company or submitted your registration requesting an exemption, to take this simple step now at the CalSavers website.
For more information on how to ensure you are up to date with all the legal requirements and compliance that California requires of employers, please contact the Employer Lawyers at Chauvel & Glatt.
The material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute, legal advice or promise similar outcomes. For information on your particular circumstances, please contact Chauvel & Glatt at 650-573-9500. (photo credit: depositphotos.com)