By Molly Wood, SPHR. SDEA HR Consultant
Compliance Update! CalSavers registration deadline for employers with 51+ employees is June 30.
State law requires that California employers who don’t already offer an employer-sponsored retirement plan register for CalSavers, a state administered plan to promote retirement savings. If you do offer an employer-sponsored retirement plan, you need to certify your exemption from CalSavers.
Fortunately, employer responsibilities in regard to the plan are minimal. You will need to register your business, add your existing employees, add new hires as part of your new hire process (within 30 days of hire date), delete terminated employees, and submit employee contributions. If an employee decides to enroll in the program, they are responsible for updating their information through the CalSavers website and they will need to reach out to CalSavers with questions about the plan.
You should let your employees know that when they receive a notification from CalSavers, if they do nothing they will automatically be enrolled at 5% of their post-tax earnings. They can change that contribution any time, or opt out, through the CalSavers website.
The CalSavers site is actually well set-up, with resources for employers and fliers available to educate employees. While the June 30, 2021 deadline is for employers with 51+ employees, next year registration will be required for employers with 6+ employees. Registration is open for employers of all sizes, so if you want to offer this benefit to your employees early, you are able to do that.
Here is a link to the website.
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