Attention California Employers (with 1-4 Employees): CalSavers Deadline Approaching!
Do you have between one and four employees? If so, it’s time to check if you’re ready for CalSavers!
California’s retirement savings mandate, CalSavers, now includes even the smallest businesses. Thanks to Senate Bill 1126, if your business employs at least one person and you don’t already have a qualified retirement plan (think 401(k), SIMPLE IRA, SEP IRA, etc.), you’ll need to act by December 31, 2025.
What Does This Mean for You?
Unless you have one of these exemptions:
- You already offer a qualified retirement plan (401(k), 403(b), SIMPLE IRA, SEP IRA, etc.).
- Your business is closed or has been sold.
- The only workers are the business owners (no other employees).
… you’ll need to either register your business with CalSavers or establish a qualified retirement plan by the end of 2025.
Quick Reminder: What Exactly is CalSavers?
CalSavers is California’s state-run Roth IRA program designed to give employees easy access to retirement savings if their employer doesn’t offer a workplace retirement plan. Employees who qualify (age 18+, employed for at least 30 days) are automatically enrolled—though they can easily opt out or adjust their contributions anytime.
Here’s Your Simple Checklist:
If you’re not exempt and don’t currently offer a qualifying plan:
- Register your business at CalSavers
- Enroll eligible employees
- Set up payroll deductions to help your employees save easily
Don’t Wait!
Avoid potential penalties by preparing early. For support or to discuss the best retirement plan options for your business, reach out to a qualified financial planner or benefits/ERISA attorney.
For more information please contact JorgensenHR at (661) 600-2070, email info@jorgensenhr.com or visit www.jorgensenhr.com.
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