Overview
The CalSavers Retirement Savings Program is a state-mandated retirement savings plan for employees who don’t have access to a private employer-sponsored plan such as a 401(k), SEP IRA, or SIMPLE IRA.
This ongoing program aims to help California workers save for retirement through automatic payroll deductions.
Employer Requirements
All California employers who had at least one employee in 2024 or 2025 must do one of the following:
- Register with CalSavers to facilitate employee contributions, or
- Certify exemption if a qualified retirement plan is already in place.
Because your company has employees in California and currently does not offer a retirement plan, registration with CalSavers is required by December 31, 2025.
How the Program Works
Once registered:
- Employees will receive an official CalSavers invitation to create their account.
- Each employee will have 30 days to either:
- Opt out, or
- Choose their contribution rate.
If an employee takes no action within 30 days, they will be automatically enrolled at a default contribution rate of 5% of gross pay, deducted after tax.
Employers are responsible for deducting and remitting contributions to the state program, but no employer matching or funding is required.
Reach out to FinStackk to discuss your employees retirement savings options and ensure full compliance.