CANNABIS CORNER.

• Author: Schopp, Margaret E.

CalSavers

Due to limited banking options and high regulation, cannabis entities require more support from their bookkeepers and accountants. One area is compliance with what is commonly known as CalSavers.

CalSavers came about in 2016 when California Gov. Brown signed AB 1234, which requires employers to provide a retirement savings account to employees (they can opt out). The objective of the bill was to allow for every California worker to save for retirement. The law was phased in over time:

* Sept. 30, 2020, for employers with 100+ employees

* June 30, 2021, for employers with 50+ to 100 employees

* June 30, 2022, for employers with 5 to 50 employees

CalSavers is the state-run retirement savings program available to all businesses (including cannabis businesses) to comply with AB 1234. Highlights of the program are:

* No cost to the employer; costs paid by the employee

* Roth IRA is the default, employee can change to...