Required Roth IRA For Your Employees
Hi All. If you have a business in California with 5 or more employees, please read on...........
June 30 is the deadline to register with California's "Cal-Savers" program. Registration is required if your business does not offer a retirement plan (ex: 401k) to your employees.
If you don't offer a plan, Cal Savers administers a Roth-IRA for each of your employees. Contributions will be automatically deducted from employee pay and forwarded to Cal Savers for investment. Employees can opt out anytime.
Your responsibility as an employer , if you don't offer a retirement plan, is to register your business with the state and enroll employees. Employees would then access their account and provide the required info. Or, opt out.
Below is a link to the state's Cal-Savers website.
Penalties are steep for non compliance so if you haven't already set up a 401k, make sure to register with the state by June 30.
If you have questions, please let me know.