LOS ANGELES — Every employer with five or more workers in California is required either to sponsor a retirement plan or to sign their workers up for CalSavers, the system of Individual Retirement Accounts set up by the state. And hundreds of employers that haven't complied will soon get one last chance to avoid being penalized by the state's tax collectors.
The state has been imposing penalties against noncompliant employers in waves, starting early this year with those that have 101 or more workers in the state. Katie Selenski, executive director of CalSavers, said the next wave will focus on noncompliant employers with 51 to 100 workers in California, which were supposed to have launched retirement savings plans or signed up for CalSavers by June 30, 2021.
As of the end of October, there were about 1,770 businesses and nonprofits in that group, including about 450 in Los Angeles County, Selenski said. They face a penalty of $250 per eligible employee, and if they don't come into compliance within 90 days, they'll have to pay an additional $500 per employee.
