By Abe Livchitz, CPA, Senior Tax Manager
August 26, 2022 Update to Expand CalSavers to More Workers
Governor Newsom signed an amendment, S 1126, requiring all employers within the state of California with at least one worker to participate in the CalSavers program (reducing the minimum from five workers). The amendment is expected to take effect prior to December 31, 2025, and continues to apply to employers that do not otherwise offer a retirement plan to their employees.
May 9, 2022 Update
Action Is Required
The state-run CalSavers program was enacted in 2016 to provide employees an opportunity to build retirement savings and let employers avoid administrative fees and fiduciary responsibilities. An email outreach program launched towards the end of 2020, so many businesses have already received a notification to register for the CalSavers retirement plan program. In 2021, this requirement only applied to California employers with more than 50 employees, but effective in 2022, employers with more than 5 employees will be required to register.
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