California has the most mature state retirement mandate in the US. CalSavers launched in 2019 and is now fully enforced for ALL employers with 1+ employees. Penalties are actively being issued.
Get Your Free California Compliance Audit →CalSavers is California's state-mandated retirement savings program. California has the most mature state retirement mandate in the US. CalSavers launched in 2019 and is now fully enforced for ALL employers with 1+ employees. Penalties are actively being issued.
Employers who already offer a qualifying private retirement plan — such as a 401(k), SEP IRA, or SIMPLE IRA — are exempt from CalSavers requirements.
Learn more at the official state portal: https://www.calsavers.com
Option 1 — Enroll in CalSavers: Register through the state portal and facilitate payroll deductions. This fulfills the mandate but doesn't maximize tax savings.
Option 2 — Set up a private plan (recommended): A qualifying 401(k), SEP IRA, or SIMPLE IRA exempts you from the mandate AND qualifies you for up to $15,000 in SECURE 2.0 Act tax credits over 3 years.
Key difference: A private plan belongs to your company. CalSavers/state plans do not. Private plans also attract and retain better employees.
The SECURE 2.0 Act (2023) gives small business owners massive tax credits for starting a retirement plan:
✅ Up to $5,000/year for 3 years for plan startup costs
✅ $1,000 per employee/year for employer contributions (up to 50 employees)
For many California small businesses, this makes a private 401(k) free or nearly free — while exempting you from CalSavers requirements entirely.
Yes. As of 2022, all California employers with 1 or more employees must either enroll in CalSavers or offer a qualifying private retirement plan such as a 401(k), SEP IRA, or SIMPLE IRA.
California fines non-compliant employers $250 per eligible employee after 90 days of notice, and $500 per employee after 180 days. Penalties are actively being issued by the Franchise Tax Board.
Offer a qualifying private retirement plan (401k, SEP IRA, SIMPLE IRA). This automatically exempts you from CalSavers. Plus, SECURE 2.0 tax credits can offset up to $5,000/year of startup costs.
Find out exactly what CalSavers means for your business — and whether a private plan saves you more money than enrolling in the state program.
Book Your Free 15-Minute Audit →