Retirement Plan required for CA Employers
Any employer with at least five employees that doesn’t already offer a workplace retirement savings vehicle will be required to either begin offering one via the private market or provide their employees access to CalSavers.
|Size of business||Deadline|
|100< employees||June 30, 2020|
|50< employees||June 30, 2021|
|5+ employees||June 30, 2022|
The CalSavers account is a Roth IRA. The default savings rate is 5% of gross pay, and employees can change their rate at any time. Employees will be auto-enrolled after 30 days and will begin saving through payroll contributions. They can opt out at any time.
Employers serve a limited role: facilitate the program and submit participating employees’ contributions via simple payroll deduction. Employees are responsible for their investment choices. Employers cannot make contributions. There are no fees for employers to facilitate the program.