November 2024

 

California expands CalSavers/Retirement Plan requirement to all employers

11/03/22

[EasyDNNnewsLocalizedText:Author]: ADP Admin/Tuesday, November 1, 2022/[EasyDNNnewsLocalizedText:Categories]: [EasyDNNnews:Categories]

California has enacted legislation (Senate Bill 1126) that requires employers with four or fewer employees to either register with CalSavers or offer a qualifying employer-sponsored retirement plan by December 31, 2025. Larger employers are already subject to the requirement.

The Details:

CalSavers is a state-based payroll withholding savings program using Roth (post-tax) individual retirement accounts.

By Dec. 31, 2025, employers with four or fewer employees must either register with CalSavers or offer a qualifying employer-sponsored retirement planIf employers choose the former, they must register using one of the following methods:

  • Via the program’s website (employer.CalSavers.com);
  • By phone (855-650-6916);
  • By overnight mail (CalSavers, 95 Wells Avenue, Suite 155, Newton, MA 02459); or
  • By regular mail (CalSavers, P.O. Box 55759, Boston, MA 02205-5759).

To register, an eligible employer must provide the following information:

  • Employer name, legal name and “doing business as” name, if applicable;
  • Federal Employer Identification Number or, if unavailable, the California Employer Payroll Tax Account Number;
  • Employer mailing address;
  • Employer physical address; and
  • Name, title, phone number and email address of an individual designated by the employer as the primary contact for the program.

Within 30 days of registration (or within 30 days of the date of hire for employees hired after registration), employers must provide the following information to the program for each eligible employee:

  • Full legal name;
  • Social Security Number or Individual Taxpayer Identification Number;
  • Date of birth;
  • Physical address;
  • Phone number, if available; and
  • Email address(es), if available.

Note: An employee is defined as an individual who has the status of an employee under the California Unemployment Insurance Code and who receives a W-2 with California wages. An eligible employee is an employee of an eligible employer who is at least 18 years of age.

Eligible employees are entitled to a CalSavers information packet. The program is responsible for distributing the packet to the employee and will do so within 10 days of receipt of the employee’s information.

Employers must remit to the program each employee’s contribution each payroll period.

Next Steps:

If you have four or fewer employees, either register with CalSavers or offer a qualifying employer-sponsored retirement plan by Dec. 31, 2025.

 

 

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