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Submitting Contributions

This is the final - and most important - step in your employee’s ability to save for retirement. In this step, you will send your employee’s payroll deductions to CalSavers so that the amount can be applied to their retirement savings account and invested according to their instructions.

When should this step be completed?

  • First time: You should plan to send payroll contributions for any participating employees on the first pay date that occurs 30 days after you uploaded your employee information.
  • Ongoing: As employees make changes that impact their contribution amount, notifications will sent to you by e-mail and posted in the Employer Portal prior to each pay period. You will continue to send employee contributions each pay period until the employee leaves your company or opts out of participation.

Important: Contributions must be sent within 7 days of taking the money out of your employees’ paychecks.

Information you will need to complete this step:

Before you can submit contributions, you’ll need to establish the payroll deduction within your bookkeeping or payroll software/file.

You will also need:

  • The contribution amounts each employee selected. Found on the Employee Dashboard page.
  • Bank information to execute an electronic bank transfer of funds. (Note: you can also send paper checks.)

Many employers find it easier to use the file upload process than manual entry. Use this template to upload your employee contribution amounts.

Download Template Employee Contribution Template Tips

What comes next?

You will continue to send employee contributions each pay period until the employee leaves your company or opts out of participation.

Frequently asked questions

Can an employer make contributions on behalf of their employees?

No. Employers are not allowed to make contributions on behalf of, or as a match to, employee contributions in this program. If an employer wishes to make contributions to a retirement plan on behalf of their employees, they should explore offering an employer-sponsored retirement plan.

Who will be responsible for monitoring contribution limits?

It is the responsibility of program participants to monitor their own annual contribution limits across all Individual Retirement Accounts (IRA) they maintain, including their CalSavers account. CalSavers intends to notify employees when their CalSavers account is close to reaching the federal annual contribution limits for an IRA and will instruct employers to stop contributions when employees’ contributions reach the limit. Note that limits apply across all IRAs maintained by an individual and CalSavers will not know of other IRAs that program participants maintain elsewhere.

It is also the responsibility of the program participant to determine if they are eligible to contribute to a Roth IRA, and to comply with any other IRA rules. However, CalSavers will provide program participants with educational materials to help participants understand the rules.

What if an employee is already contributing through another employer they currently work for?

Employees are invited to enroll in the CalSavers program for each employer that they work for. They may choose to opt out of contributions through an employer or contribute through multiple employers at the same time. Program participants must monitor their contribution levels across all of their IRAs to ensure they do not violate IRS limits.

Is there a waiting period?
No. Eligible employees who do not choose to opt out of the program are automatically enrolled 30 days after their date of hire or date of eligibility. Contributions may be made on behalf of an employee at any point after they are enrolled.
Is there a vesting period?
No, contributions belong 100% to the contributing program participant from day one.
How do I know who to deduct contributions for?
Employers are prompted to select a notification preference, which will provide email notifications between 1-5 days prior to the next pay date. Also, at any point in time, employers can access up-to-date information on their employer portal, illustrating any employee decision changes.
How often do I need to send the contributions in?
Contributions must be submitted to the program for each paycheck and remitted within seven days of taking the deduction out of the participating employee’s paycheck.
How will I know when to submit the first payroll contributions?
Your first contributions will be submitted on the first pay date that occurs 30 days after you upload your employee roster. You will receive a notification in your message center a few days prior to each pay date and an e-mail will be sent to the primary company contact letting them know they should check their message center in the employer portal.
What happens if an employee does not opt out in time and contributions were submitted, but they do not want to participate?

If an employee decides to opt out after their account has already been funded they have the option to request a withdrawal in the form of a check or bank transfer. If this occurs, employees should be referred to the web site to complete a Withdrawal Form or contact the Client Services Team at 855-650-6918.

Can an employee’s payroll deduction be set for less than 5% or in other increments of a percent?

An employee’s contribution rate can be set for less than 5%, but it does need to be a whole percentage. When employees make contribution rate changes, you will be notified prior to your next pay date and must make the necessary adjustment on their payroll deduction

The portal does not allow employers to change employee contribution rates on their behalf.

If the person does decide to opt out, does the business get penalized?
No. Employee participation is completely optional. It is important, however, that employers avoid encouraging or discouraging employee participation, since that could be construed as giving financial advice.