CalSavers Archives

Complying with California’s CalSavers Mandate

By Office Staff|2025-01-30T14:57:47-08:00January 30, 2025|Categories: Business Advice|Tags: CalSavers, Roth IRA|2 Comments

If you are a small-business owner in California, you already have a lot on your plate. From managing employees to tracking expenses and keeping up on your federal, state, and local estimated tax payments, the last thing you need is another complex regulation.

The good news is this: If you have at least one employee, other than yourself or your spouse, California’s CalSavers mandate is a regulation you can’t afford to overlook. This state-run retirement savings program is designed to help your employees save for their future without imposing an extra financial burden on you or your business. But, as you’re already well aware, compliance alone can be a burden.

In this post, we try to ease that burden by bringing you up to speed on CalSavers and guiding you through the steps to achieve compliance. Whether you’re new to the program or simply need a refresher, we have you covered!

CalSavers Fundamentals

CalSavers is a retirement savings plan for workers whose employers don’t offer a workplace retirement plan, and for self-employed individuals and others who want to save extra toward retirement. Employees contribute to a Roth IRA (individual retirement account) that belongs to them but is administered by the state.

Designed to be easy for employers and simple for employees, CalSavers is professionally managed by private sector financial firms with oversight from a public board, chaired by the State Treasurer. There are no fees for employers, and employees manage their accounts directly with CalSavers.

Determining Whether the Mandate Applies to You

Initially, the CalSavers mandate applied only to employers with five or more California W-2 employees who did not offer retirement plans to their employees. Beginning in 2025, the threshold dropped to employers with Continue reading… Continue reading… Continue reading…

Complying with CalSavers — California’s Retirement Savings Mandate for Employers

By Office Staff|2023-11-03T14:51:27-07:00November 3, 2023|Categories: Retirement Planning|Tags: CalSavers|0 Comments

As Southern California’s tax planning and financial strategies advisory firm for entrepreneurs and small business owners, we here at SWC play a unique role in helping our clients understand and comply with California’s tax laws and related regulations.

Small-business owners rarely have lawyers or lobbyists to represent them and keep them informed. Many small business owners aren’t even connected with resources like their local Chamber of Commerce. That’s where we come in. We are trusted tax professionals that our clients can turn to for information, guidance, and support.

And that includes notifications and updates related to CalSavers and California’s retirement savings mandate.

What Is CalSavers?

CalSavers is California’s retirement savings plan for workers whose employers don’t offer a workplace retirement plan, and for self-employed individuals and others who want to save extra toward retirement. Savers contribute to a Roth IRA (individual retirement account) that belongs to them but is administered by the state.

For a more detailed CalSavers primer, including how to register your business, please see our previous post, “Getting Up to Speed on CalSavers: California’s State-administered Retirement Plan.”

Designed to be easy for employers and simple for employees, CalSavers is professionally managed by private sector financial firms with oversight from a public board chaired by the State Treasurer. There are no fees for employers, and employees manage their accounts directly with CalSavers.

Employers that don’t offer their own plan must register with CalSavers by a specified deadline and facilitate their employee’s access to the program. And if they don’t? Well, that’s what the rest of this post is all about.

Is Your Business Required to Participate?

In 2023, the employer mandate was expanded to include employers with one (1) or more employees. Your business is exempt from participation in CalSavers in only three cases: Continue reading… Continue reading… Continue reading…

Getting Up to Speed on CalSavers: California’s State-administered Retirement Plan

By Office Staff|2021-04-21T13:06:54-07:00April 21, 2021|Categories: Retirement Planning|Tags: CalSavers, Roth IRA|0 Comments

Good news for those of our clients who are employers: California’s new retirement savings plan, CalSavers, may be able to offer your employees the opportunity to save for the future without much effort — and at no cost to you or your business.

CalSavers is available to California workers whose employers don’t offer a workplace retirement plan, along with self-employed individuals and others who want to save extra toward retirement. Savers contribute to a Roth IRA (individual retirement account) that belongs to them but is administered by the state. Employers that don’t offer their own plan simply register with CalSavers by the specified deadline and facilitate their employee’s access to the program.

The program benefits both employers and savers:

Benefits for Employers

Quick and easy registration
Limited responsibilities
No administration
No employer fees
No fiduciary responsibility

Benefits for Savers

Automatic or personalized investment options
Freedom to opt in and opt out and change the contribution percentage at any time
Simple, low-fee investments
Portability — the account remains with the employee through any job changes

Navigating CalSavers for Employers

All California employers with more than five (5) employees must register for CalSavers by the specified deadline regardless of whether they are exempt from the program. (See below for all associated deadlines.)

Deciding whether you must register

Employers that have at least five (5) employees and don’t already offer a workplace retirement plan can register for CalSavers. Employers that have five or more (5-plus) employees must register, regardless of whether or not they offer their own retirement plan:

If you already offer a retirement plan, you’re not required to participate in the program, but you must register as “exempt.”
If your business is a nonprofit, you must register like other businesses, unless it is a religious organization, in which case registration is not required.
Even if all your employees choose to opt out of CalSavers, you must register if you have at least five employees.

Note: If you’re not required to register and you receive a notice from the state informing you of the need to register, you must respond to the notification to avoid any penalty.

Meeting the registration deadline

If you’re required to register, you must do so by Continue reading… Continue reading… Continue reading…