November 2019
Stay Current Newsletter

California's individual mandate, SB78 was included in the state budget, which Governor Gavin Newsom signed on June 27. Beginning January 1, 2020, California residents must have health insurance or be liable for a $695 tax penalty for not maintaining minimum essential coverage. This follows the repeal of the individual mandate at the federal level, which took effect in 2019.

This applies to California residents as well as their spouses and dependents. However, there are financial hardship exemptions and religious exemptions, as well as exemptions for undocumented residents, inmates, Native Americans, and those enrolled in a health care sharing ministry.

For more information about the new California law, visit the Franchise Tax Board .

Some insurance carriers are permitting a special open enrollment for those who do not currently have coverage, as referenced in the chart below. Contact your account management team for more information.

Will Carrier Offer a Special Open Enrollment due to SB78?
Anthem Blue Cross
Blue Shield of California
Pending decision
Pending decision
Health Net
Case by case basis
Kaiser Permanente
Sutter Health
Western Health Advantage

Anchor2 HRDR Blog: Navigating Paying Your Employees During a Natural Disaster

Once again, California has been plagued with natural disasters. These occurrences can cause disruptions in your business as well as make it challenging to pay your employees. Our November blog post addresses this timely topic. 

Missed our post? Read it here.

December 1 is just around the corner. The BDR team is working in advance to ensure we are able to complete all processing in a timely fashion. The following reminders will help you and your employees know what to anticipate regarding billing, scheduling appointments, verifying coverage and other changes.

We have attached a PDF that can be distributed to your employees.

Anchor4CalSavers: What You Need to Know Before Enrolling

Big changes are coming for businesses in California that don't offer their employees a retirement savings plan. Beginning in 2020, the state's CalSavers program will begin a phased roll out, starting with businesses with 100 or more employees. By 2022, every business with five or more employees in the State of California will be required to offer a retirement savings plan or face financial penalties.

If a business does not have a private retirement plan in place by the deadline, it will be required to offer employees a state-administered IRA plan called CalSavers. With CalSavers, employees are auto-enrolled in an IRA at a contribution rate of 5% of gross pay, unless they choose to adjust the contribution rate or opt-out.

"Nearly 80% of small business employees do not have access to a retirement savings option at work. That's mainly because small business owners are wary of the costs, administrative complexity and liability," Mark Herbert, California Director of Small Business Majority says.

CalSavers provides easy access to basic retirement savings tools. However, as with any business decision, it is important to consider all the options before jumping into something just because it seems like the easiest way.

Another option that qualifies to fulfill this requirement is an employer-sponsored 401(k) or 403(b) program. These plans offer more benefits to business owners and employees alike. A few of the benefits include:
  • Tax deductible contributions
  • Higher contribution limits
  • No income limits
  • Employer match available (tax deductible for business owner)
It is a common myth that all 401(k) and 403(b) plans are expensive, time-consuming and best suited for large businesses with plenty of resources. Technology has made it easier and more affordable for small and medium sized businesses to take advantage of these plans and their benefits. By automating administration and integrating with popular payroll providers, there is no need for additional staff or resources to launch and administer a 401(k) in the modern era.

Automated 401k providers can offer access to thousands of desirable investment funds and perks like financial advice from an SEC-registered advisor, without the high cost of traditional providers.

And, finally, don't forget to consider the type of plan employees will value most. In a competitive employment market, a solid 401(k) or 4013(b) plan could distinguish your business from the competition with employees and prospects.

Enrolling in CalSavers is not mandatory but offering a qualified retirement savings plan soon will be. Now is the time to find the best option for your growing business.

Anchor5Office Closure: Thanksgiving Day

BDR will be closed Thursday, November 28 and Friday, November 29 in observance of the Thanksgiving holiday.

We will process and respond to all email and voicemails when normal business hours resume Monday, December 2.

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