What Is the CalSavers Program?

CalSavers is California's retirement savings program designed for the millions of Californians who lack the means to save for retirement. It is an automatic enrollment IRA with no employer fees or fiduciary liability. 

The mission posted on CalsSavers' site: "Ensure all Californians have a path to financial security in retirement by providing a simple, low-cost way for workers to invest in their futures."

Who Is Required to Participate?

By law, eligible employers must register and facilitate program activities by specific deadlines. Before we discuss these deadlines, let's look at who is eligible:

• Businesses with payroll in the state of California.
• Employers who do not already sponsor a retirement plan.
• Employers with five or more California employees.

What Does This Mean for Your Business?

The first step is registering. Depending on the size of your business, you will have different registration due dates:

• Businesses with more than 100 California employees must register by September 30, 2020 (Passed)
• Businesses with more than 50 California employees must register by June 30, 2021 (Passed)
  
• Lastly, businesses with more than five California employees must register by June 30, 2022

Since we Gold Standard Tax & Accounting specializes in serving the financial needs of small businesses, most of our readers will fall into this last deadline category.

What Happens After Registering?

State law requires CA employers to either offer their own retirement plan or register to facilitate CalSavers. 

Employers will serve a limited role:

• Facilitate the program by adding and maintaining their employee roster
  
• Submit contributions via simple payroll deduction.

It is of note that there are no employer fees, nor do they make contributions to employee accounts.

Ready to get compliant? Click here to read about the registration process and to begin registration.

Still have questions? Click here to schedule an appointment with one of our seasoned bookkeepers and discuss CalSavers and your payroll options.

Contact us: 
[email protected] | CA (760) 888-6247 | NY (845) 237-4060

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