Effective June 30, 2022, all California business owners with five or more employees must provide a retirement plan to their employees. The CalSavers law mandates that employers must either sponsor a 401(k) or other qualified retirement plan or they may adopt the state-run CalSavers retirement plan. If a business does not comply with this requirement, it may be assessed a fee of up to $750 per employee. In addition, all employers that choose to sponsor a 401(k) or another qualified retirement plan must register their plan with the CalSavers program by the June 30 deadline.
For more information, please check out the CalSavers website.
