California’s final CalSavers compliance deadline is approaching for small employers. If your business has even one W-2 employee, you must either register for the CalSavers Retirement Savings Program or file for an exemption if you already offer a qualified plan.
What is CalSavers?
CalSavers is a state-mandated retirement program offering Roth or Traditional IRAs funded via automatic payroll deductions. It’s designed for employees without access to a workplace retirement plan. Employers do not contribute or manage funds — but they are responsible for registration and ongoing compliance.
Who Must Act by December 31, 2025?
- All California employers with 1–4 employees (W-2) who were not covered by earlier compliance deadlines.
- Businesses that do not already offer a qualified plan (e.g., 401(k), SEP IRA, SIMPLE IRA).
- Employers with a plan still need to certify exemption to remain compliant.
Penalties for Non-Compliance
- $250 per eligible employee after 90 days of non-action
- $500 per employee if still non-compliant after 180 days
What Employers Need to Do Next
- If you already offer a retirement plan: You must certify your exemption through the CalSavers portal to avoid penalties. This involves confirming your plan type and submitting a short electronic form.
- If you do not offer a plan: You must register your business with CalSavers and begin the onboarding process before the December 31, 2025 deadline.
Need Help Navigating the Requirements? Duffy Kruspodin’s HR Services team helps employers stay compliant with state mandates like CalSavers and supports exemption filing and policy updates. We can help you:
- Understand CalSavers applicability to your business
- Navigate exemption filing
- Evaluate retirement plan options that may better suit your workforce
Contact Us for Help with Filing or Registration
About HR Services at Duffy Kruspodin
Our HR Services are designed to help growing employers stay compliant and people-focused. We offer:
- Employee handbook creation and policy guidance
- Labor law compliance at the federal, state, and local level
- Benefits administration and talent planning
- On-demand HR support for your day-to-day operations
If you have questions about CalSavers or any HR compliance matter, we’re here to help.
Email Alli Smith, PHR at allison@dk.cpa to learn more.