Beginning in January 2022, as mandated by AB 102 (Ch. 20-21), the FTB and the CalSavers Retirement Savings Board will issue penalty imposition notices to employers deemed by the CalSavers Retirement Savings Board to be noncompliant with the CalSavers requirements. (FTB Tax News (November 2021))
The first notice will impose a $250 per-employee penalty, and the final notice will impose a $750 per-employee penalty (if noncompliance continues).
Private employers that do not offer employer-sponsored retirement plans must have already registered with CalSavers if they have more than 50 California W-2 employees. Employers with five or more employees must register by June 30, 2022. To avoid penalties, these employers must register with CalSavers and facilitate contributions to their employees’ CalSavers accounts, unless the employee(s) opts out of participating in the program.