Michael Lodge –
For those small businesses with 5 or more employees, please be aware of the new payroll deduction savings program required by the State of California.
California: In September 2016, Gov. Jerry Brown signed a bill that will go into effect Jan. 1, 2017 and require a business with five or more workers and no retirement plan to participate in a new payroll-deduction savings program run by the state. The money will go into individual retirement accounts (IRAs) managed by a state-selected financial company. Larger companies with 100 or more workers will have to comply first. They will have one year from the time enrollment opens to sign up their workers or set up their own plan. Businesses with 50 to 99 employees will have two years after enrollment opens and small businesses with 5 to 59 workers will have three years to comply.