If you recently received a notice stating that payroll contributions were expected, you are not alone. Many California employers are still working through their obligations under the CalSavers Retirement Savings Program.

What Is CalSavers?

CalSavers is California’s state-sponsored retirement savings program. It requires employers with five or more employees to either offer a qualified retirement plan or register with CalSavers and facilitate employee participation.

The program does not require employers to make contributions. However, employers must enroll eligible employees, process payroll deductions, and remit those contributions each payroll cycle.

Why Are You Receiving Payroll Notices?

California law requires employers registered with CalSavers to submit employee contributions on a timely basis. If contributions are not transmitted, or if payroll data has not been updated, the program may issue compliance reminders.

Even if employees choose to opt out, employers are still required to:

• Register (if applicable)
• Provide required employee notices
• Maintain payroll records
• Re-enroll employees every two years

What If Employees Opt Out?

Employees may opt out of participation at any time. If they do, no payroll deductions are required. However, the employer’s administrative obligations remain.

Failure to comply can result in state penalties that increase over time.

What Should Employers Do Now?

Employers should confirm whether they are required to participate, verify payroll systems are properly configured, and ensure employee notices and recordkeeping procedures are in place.

With enforcement increasing, now is a good time to review your compliance status and confirm with your payroll provider that contributions and reporting are properly configured. If questions arise regarding eligibility, exemptions, or potential penalties, contact our office for guidance.

Received a CalSavers notice? Start by confirming your payroll setup. Contact our office if you have compliance concerns.
Contact Chase Law Group.

WWW.CHASELAWMB.COM
310-545-7700

_{Please note that this article is for informational purposes only and should not be considered legal advice and does constitute an attorney-client relationship. It is recommended to consult with an attorney directly for specific guidance pertaining to your business and its practices.}