CalSaver Deadline Approaches for Large Companies to Register or Certify as Exempt
CalSaver Deadline Approaches for Large Companies to Register or Certify as Exempt

By September 30, 2020, all California companies with more than 100 employees must register with the CalSavers Retirement Savings Program (CalSavers) or certify that they are exempt.

Employers without employer retirement plans must register to begin offering the state-mandated employer retirement plan to their employees.  Those employers offering retirement plans to their employees need only certify as exempt.  

The link to the CalSaver website to register or certify as exempt is here.

Smaller employers have phased-in deadlines to register or certify as exempt. Employers with 51 to 100 employees must register or certify as exempt by June 30, 2021, and those with 5 to 50 employees must register by June 30, 2022. Regardless of these registration deadlines, however, the state encourages eligible employers of any size to register at any time.

California employers are not allowed to make contributions to the retirement account, which is funded by employees at a default rate of 5% per paycheck.  

The program website states that employer registration is “quick and easy” and “employers play a limited role as facilitator.”  Employees can choose a different savings rate or opt out at any time. Accounts remain with employees even if they change jobs. 

Penalties per eligible employee apply for any failure to comply. Within 90 days of a noncompliance notice, eligible employers failing to allow eligible employees to participate in CalSavers are subject to a penalty of $250 per eligible employee, and if found to be in non-compliance 180 days or more after the notice, an additional penalty of $500 per eligible employee applies.

The author would like to gratefully acknowledge the assistance of Joanne Warriner.

This blog is presented under protest by the law firm of Ervin Cohen & Jessup LLP. It is essentially the random thoughts and opinions of someone who lives in the trenches of the war that often is employment law–he/she may well be a little shell-shocked. So if you are thinking “woohoo, I just landed some free legal advice that will fix all my problems!”, think again. This is commentary, people, a sketchy overview of some current legal issue with a dose of humor, but commentary nonetheless; as if Dennis Miller were a lawyer…and still mildly amusing. No legal advice here; you would have to pay real US currency for that (unless you are my mom, and even then there are limits). But feel free to contact us with your questions and comments—who knows, we might even answer you. And if you want to spread this stuff around, feel free to do so, but please keep it in its present form (‘cause you can’t mess with this kind of poetry). Big news: Copyright 2020. All rights reserved; yep, all of them.

If you have any questions about this article, contact the writer directly, assuming he or she was brave enough to attach their name to it. If you have any questions regarding this blog or your life in general, contact Kelly O. Scott, Esq., commander in chief of this blog and Head Honcho (official legal title) of ECJ’s Employment Law Department.

Tags: CalSaver

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