State law now requires employers to offer a qualified private retirement program, such as a 401(k) or the auto-individual retirement account program available through CalSavers. Some businesses have not come into compliance with the mandate and are now receiving penalty collection notices from the California Franchise Tax Board.
Penalties for non-compliance can add up quickly. They start at $250 per employee and can rise to $750 per employee for continued non-compliance. If local businesses receive penalty notifications from CalSavers or the Franchise Tax Board, they should immediately contact CalSavers before making any penalty payments.
Business owners who take quick action can potentially avoid heavy penalties. Doing so also helps their employees fund their own retirement savings, which strengthens local communities.
CalSavers isn't just about compliance. It offers employers the chance to support their employees' financial futures without out-of-pocket costs. The program provides an array of complimentary resources, including webinars, materials, and a dedicated support team, to ensure businesses understand and can easily navigate their obligations. Some notable resources include:
- Comprehensive FAQs, templates, and program details.
- Regularly scheduled employer-focused webinars.
Employer client service line: (855) 650-6916
- Available Monday through Friday, 8 a.m. to 8 p.m.
- Multilingual support to ensure all businesses can be assisted.
Field support: email@example.com
- Tailored support for businesses initiating the program.
- Informative sessions to educate employees about their financial futures.
The CalSavers program was enacted by statewide legislation to help address the retirement security crisis in California.
The information presented is sourced from www.calcities.org