CalSavers Compliance

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CalSavers is California's state-run retirement savings program. It makes sure every working Californian can save for retirement, even when their employer doesn't offer a plan.

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Requirements

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• Participation Mandate - Every California employer with at least one employee must either offer a qualified retirement plan, such as a 401(k), 403(b), SEP, or SIMPLE IRA, or register with CalSavers.

• Registration or Exemption -Employers must register with CalSavers or certify their exemption through the CalSavers employer portal.

• Employee Enrollment - Eligible employees must be added to the program, and new hires must be added within 30 days of their start date.

• Payroll Contributions - Employee contributions must be deducted through payroll and sent to CalSavers on time.

• Record keeping - Employee information, opt-out elections, and contribution records must be kept accurate and up to date.

 

Why this matters:

• Employers that don't comply face penalties of $250 per eligible employee if they are still out of compliance 90 days after notice. The penalty rises by another $500 per employee after 180 days.

• CalSavers gives employees an easy, portable way to save for their future. Employers pay no fees, make no contributions, and take on no fiduciary responsibility.

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At Sprout & Vine, we help you decide whether CalSavers or a private plan is the better fit. We then handle registration or exemption, set up payroll so contributions go through correctly, and keep your records ready for an audit.