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California Retirement Plan requirement is June 30th, 2022. Here’s what you need to know

State Law requires that California employers, who don’t already offer an employer-sponsored retirement plan are now required to by June 30th, 2022 if they have more than 5 employees. There could be fines of up to $750 per employee!

· Offering a 401K Plan creates a strong value to your business, and saving’s solutions that are cost effective. 60% of employees said having benefits package is extremely important to their loyalty towards their employer. Study shows that a lack of benefits can actually lead to increased employee turn around.

· Why are benefits important? They are expensive for a company to provide and in doing so, it represents a real effort for a good experience with a company. Research shows that work engagement and satisfaction increase with better benefits.

· What benefits are employees looking for? 61% say that are looking for health and well-being (medical, dental, ETC) 75% say they are looking for flextime benefits. These are benefits that allow for flexible hours in contrast to your more traditional work days. There is usually a “core time” they are required to be at work and outside of that time is what you would consider to be flexible time. The total number of hours is still the same amount of time as the traditional work schedule.

FFHR has an amazing Slavic MEP 401k option for you, as well as custom retirement solutions.

We hope this information has been helpful. As always, reach out to us if you need more assistance with this or anything else. Our mission is your mission.

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