CalSavers- Q and A for Restaurant Managers
By June 30th, 2021 if your restaurant has 51-100 employees, you must register for CalSavers. This is only required if you do not offer an employer-sponsored retirement plan. However, if you do offer a plan already, you still need to certify your exemption on the CalSavers website. Here is some additional information regarding CalSavers:
Why did CA make this program?
CalSavers was established to help CA employees save for retirement. CA has a law that says that all employers with 5 or more employees are required to either offer their own retirement savings plan or facilitate employee access to retirement savings through CalSavers. It is being implemented in tiers based on employee number. The program required employers with more than 100 employees to have registered by September 30th, 2020; employers with 51-100 employees must register by June 30th, 2021; and will require employers with 5 or more employees to register by June 30, 2022. It is crucial that you register in your designated timeline.
What am I responsible for as an employer?
Your first responsibility it to register your business. When you do this, you can add delegates or payroll representatives who can help administer your program, add your current employees, add bank information and send contributions. It is important to note that once you register, you have 30 days to upload your employee roster. You should also notify your employees that your restaurant is facilitating CalSavers. It should also be noted that employers are required to stay neutral about the program. Your job is the inform employees that they will be contacted by CalSavers and you should not provide any comments or personal opinions about the program.
It is the EMPLOYEES responsibility to customize their account and chose to opt out if they would like.
On an ongoing basis, you will be responsible for adding/removing employees and sending their contributions each pay period.
What am I NOT responsible for as an employer?
First of all, there are no fees or employer contributions as part of this program, so you do not have to worry about incurring fees. You are also not responsible for managing employee accounts, answering their questions about the program, processing any investment change requests, processing distributions, giving any investment or tax advice, or managing employee changes. All employee questions about the program should be directed to employee assistance at CalSavers. Their phone number is (855) 650-6918.
Am I liable for my employees’ investment decisions?
No you are not. Again, you should not provide advice on investment or taxes.
Where do I go to register?
You can register here.
If you already offer an employer sponsored plan, you still need to certify your exemption, which you can do here.
Where can I find more information?
CalSavers has a very complete FAQ section.
They also have a great FAQ section for employees as well. You can direct employees to their website for questions, or provide them with CalSavers phone number.
What if I need help?
You can contact us at Vine Solutions. Our HR team
is ready to help with your CalSavers questions.
KEY TAKE -AWAYS
Action is required for businesses with 51-100 employees by June 30th for CalSavers. The CalSavers website is full of good information but if you have questions, you can always reach out to our HR team for more information and assistance. Compliance with this law is mandatory so don’t delay.