CalSavers is getting ready to impose penalties on employers with more than 100 workers with no retirement plan who haven’t registered—and it’s not cheap.
Employers that do not offer a private retirement plan and who have more than 100 employees have been urged to immediately comply with state law and register for the CalSavers Retirement Savings Program before penalties are imposed this month. Those penalties—$250 per employee, according to a press release—will be levied on employers by the CalSavers Retirement Savings Board in partnership with the Franchise Tax Board. This action/announcement comes after “dozens of notifications sent by letter and email from the program since it launched three years ago.”
“We strongly urge employers to come into compliance now before we mail penalties this month,” said executive director Katie Selenski. “Our service representatives are standing by to assist you and the vast majority of employers find it easy to comply.”
According to a press release, more than 24,000 employers have already registered.
The authorizing legislation passed in 2016 establishes that noncompliant employers will be penalized $250 per employee upon the first penalty notice and, if noncompliance persists another 90 days, an additional $500 per employee, for a total of $750 per employee for sustained noncompliance.
Mandated employers must register for CalSavers at www.calsavers.com before their applicable deadline. The deadline for businesses with more than 100 employees was Sept. 30, 2020, delayed from June 2020 due to COVID-19. The deadline for businesses with more than 50 employees passed on June 30, 2021 and noncompliance penalties for this group are slated for mid-2022. The deadline for employers with five or more employees is June 30, 2022.
- Log in to post comments