Written by Gabriel Dillard
Sept. 30 marks an important deadline for employers to meet if they don’t want to run afoul of the law in California.
Businesses with more than 100 employees must register with CalSavers, the new state-run retirement plan. The law only applies to businesses that don’t already sponsor an employee retirement plan.
CalSavers officially launched July 1, 2019, offering an Individual Retirement Account to employees who aren’t covered for retirement for an employer. The program promises no expenses, liabilities or obligations to an employer, short of making the plan available and facilitating payroll contributions for employees who chose not to opt out.
The first deadline for employers with more than 100 employees to register was June 30, but that was extended to Sept. 30 due to the pandemic.
“Business owners are facing unprecedented challenges due to the COVID-19 emergency,” said California State Treasurer Fiona Ma in April, when the deadline was extended. “We hope this action will help employers as they navigate through this difficult time.”
Employers who fail to register face financial penalties.
Deadlines for employers with more than 50 employees and five or more employees are June 30, 2021 and June 30, 2022, respectively. More information is available at www.calsavers.com.