What Cannabis Companies Need to Know About California’s Retirement Plan Mandate
California cannabis companies with over 100 employees have two days to offer a retirement plan to employees or enroll in the state’s CalSavers system. If not, they could face penalties of up to $750 per worker.
Smaller companies have more time. The deadline is June 30, 2021 for those with over 50 workers and June 30, 2022 for those with 5 or more.
Jewell Lim Esposito, a partner at FisherBroyles, LLP said 401Ks are a good option.
“Under the SECURE ACT, any company — including a cannabis company — can get up to $5,000 annually in a federal tax credit in starting or participating in a new 401(k) plan. Moreover, if the 401(k) plan has an automatic enrollment feature (where employees are put right into the 401(k) plan, unless and until they opt out), then there is another $500 annual federal tax credit.”
Read more at Benefits Pro.