If you’re in a state like California, that now mandates businesses offer retirement savings plans to employees, do you have to use the state-run program, in this case, CalSavers? No. Your business can set up a separate 401(k) or SIMPLE IRA plan that satisfies the state requirement. You can also use a retirement services provider like Paychex, with the option of joining a Pooled Employer Plan (PEP) that may offer further value to your company. How should your business approach a challenge like this? Hear Gene Marks, CPA and small-business owner, review the California mandate, and discuss five general reasons to consider adding a retirement plan to your benefit offerings.

Why are some states now moving to mandate businesses add retirement plans to their employee benefit offerings? Well, Americans are facing a retirement crisis. According to the latest statistics from the U.S. Bureau of Labor Statistics, 45% of employers with fewer than 100 employees do not offer a retirement plan. To fill unmet gaps in coverage, states like California are offering a state-sponsored IRA savings plan to small businesses. The CalSavers retirement savings plan is facilitated by employers and funded by employee investments via payroll deductions. For businesses in California, you must establish a retirement plan or register with CalSavers before the end of the enrollment period.

To learn more about the range of retirement planning services and support Paychex offers, visit: …(read more)

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