EMPLOYERS REQUIRED TO PROVIDE 401(K) TO EMPLOYEES BY JUNE 2022
The state of California has initiated a mandate to assist private sector employees with saving for retirement through their job by requiring employers to provide a 401(k). California employers with five or more employees have until June 2022 to establish a retirement savings plan or facilitate their employees’ access to the state run program. Employers are not required to contribute to the 401(k) plans, but they will need to complete mandated reporting, and those not in compliance will be subject to enforcement in addition to penalties and fines.
Employers with 51 to 100 employees were required to register by June 2021. Employers with more than 100 employees were required to register by September 2020.