December 31, 2025 Deadline for Small Employer Registration in CalSavers Program Approaching

CalSavers is a retirement savings program eligible employers are required to use if they do not provide employees with retirement savings options through their own plan. As described by the California Employment Development Department, the program “gives employers an easy way to help their employees save for retirement, with no employer fees, no fiduciary liability, and minimal employer responsibilities.” Eligible employers must register for the program and have a payroll deposit savings arrangement in place to allow employee participation in the CalSavers program.

Eligible employers with five or more employees have been required to register through CalSavers since June 30, 2022. That same year, Governor Newsom signed into law Senate Bill 1126, which expanded eligible employers to include persons or entities engaged in a business, industry, profession, trade, or other enterprise in the state of California that have at least one eligible employee and that satisfy the requirements to establish or participate in a payroll deposit retirement savings arrangement.

Sole proprietorships, self-employed individuals, or other business entities that do not employ any individuals other than the owners of the business are excluded from this definition. In addition, specified federal, state, and local governmental entities, religious and tribal organizations, and employers that sponsor their own retirement plans are exempt from these requirements.

With the amendment, eligible employers with fewer than five employees were able to begin registering with the CalSavers program beginning January 1, 2023, and had two years to complete registration. That deadline is now approaching and eligible employers with one or more employees that do not provide their own retirement savings plan must register and set up a payroll deposit savings arrangement for employee participation in the CalSavers program no later than December 31, 2025.

More information is provided for on the CalSavers website and its FAQ.

This legal update and any use of its information does not create an attorney-client relationship. Nothing contained on this website should be considered legal advice for any specific employer or employment situation. Consult legal counsel before taking any action as a result of information contained herein.