The CalSavers program (formerly known as California Secure Choice) was passed into law back in 2016 and is now going into effect. It is a program designed to encourage employees to save for their retirement when a retirement plan is not offered by their employers.
All California employers with 5 or more employees will be required to either sponsor a retirement plan or to join CalSavers by the deadlines below. Once registered, employees are automatically enrolled unless they opt out. Standard contribution is 5% annually with a 1% increase up to 8% unless employees opt for a different rate plan, or opts out altogether.
If an eligible employer fails to allow employees to participate without good cause, penalties can be accessed of $250.00 per eligible employee up to $500.00 per eligible employee if found in non-compliance for more than 180 days.
Here are your deadlines for enrollment:
100+ Employees September 30, 2020
50+ Employees June 30, 2021
5+ Employees June 30, 2022
For more information try these websites: