Less than 3 weeks away from Cal Savers (CA Retirement Mandate)

If you are an employer in California, you should be aware of the state's new retirement savings program called CalSavers. This is especially important if you have employees who receive a cash match contribution from their employer. If your company is subject to CalSavers and fails to enroll eligible employees by the program deadlines, there is a $250 penalty for each employee (up to a maximum fine of $2,500 per employee)

We are less than 3 weeks away from the State mandate that requires Small Businesses with more than 5 employees to have a plan in order. We have put together several plans for businesses. If you have any businesses that need help, we will be more than happy to reach out. Please don't hesitate to contact us if you would like to discuss your situation. There are tax credits for the business.

STATS

According to a PwC report, one in four Americans have no retirement savings. The typical 65-year-old has $58,000 saved for retirement, according to Vanguard, but 45% of Baby Boomers have no retirement savings.

1. What is CalSavers?

CalSavers is a California state-run retirement plan. All companies with 5+ employees (full-time or part-time) will be required to register for CalSavers by June 30, 2022, unless the business already offers a retirement plan such as a 401K plan.

For More info about CalSavers please visit here. If you have any queries regarding CalSavers please contact us at hello@focusyourfinance.com.