Most small businesses would like to be able to provide retirement options to their employees to help with recruiting and provide long-term security options for their employees. Unfortunately, most employers, cannot afford to and lack the ability to offer retirement programs.
CalSavers is a portable state-run retirement program that applies to all small businesses in California. Beginning in late 2019, California began to roll out a 3-year phase-in mandatory retirement program offering with tiers based on the number of employees within an organization.
The good news for employers is that, with CalSavers, the associated burdens of running and managing an employer-sponsored retirement plans is placed squarely on the state of California. Employers will not be required to contribute funds, manage funds, or have the responsibility of providing financial advice. They will simply be required to use their existing payroll system to send voluntary employee contributions to the CalSavers fund each month.