CalSaversNovember 2021 Tax News

FTB/CalSavers Notices Coming January 2022

Franchise Tax Board (FTB) partnered with the CalSavers Retirement Savings Board as mandated by AB 102 (2020) to issue penalty imposition notices beginning in January 2022, to eligible employers deemed by the CalSavers Retirement Savings Board to be noncompliant with the CalSavers Retirement Savings Program (CalSavers).

What is CalSavers?

State law established the CalSavers to give workers a way to save for their future. State law requires eligible employers that do not offer an employer sponsored retirement plan and have at least five employees to register for CalSavers and make the program available to their employees.

CalSavers has three registration deadlines determined by the number of employees. All eligible employers can register any time prior to their registration deadline or report their exemption.

Employer registration
Number of employees Registration deadline
More than 100 [1]September 30, 2020
More than 50 [1]June 30, 2021
5 or more June 30, 2022

[1]Deadline passed. Register today.

Eligible employers that fail to comply with the CalSavers requirements will become noncompliant. CalSavers will send noncompliant employers three notices notifying them that they will be subject to a financial penalty. CalSavers may refer penalties of noncompliant eligible employers to the FTB for collection.

What is FTB’s primary role?

Beginning in January 2022, FTB will:

  • Send penalty imposition notices to eligible employers deemed by the CalSavers Retirement Savings Board to be noncompliant.
    • First Notice = $250 Penalty Per Employee
    • Final Notice = $750 Penalty Per Employee (if noncompliance continues)
  • Collect payments and remit payments to the CalSavers Retirement Savings Board.
  • Answer questions from eligible employers regarding penalty notices and in most cases route detailed questions to the CalSavers customer service center.
  • Operate an appeals process for employer disputes not resolved directly by the CalSavers Retirement Savings Board.

What is the Eligible Employer’s role?

By law, eligible employers must comply with the requirements of CalSavers, including registering and facilitating program activities by specific deadlines.

For more details, visit the CalSavers Retirement Savings Board's webpage to find resources, including videos and frequently asked questions.

What’s next?

By January 2022, FTB plans to launch an external webpage with more information about CalSavers and post examples of the noncompliance notices that FTB will issue.