Small Business FAQs

CalSavers is a state-facilitated retirement savings program that helps employees save for retirement through automatic payroll deductions into an Individual Retirement Account (IRA). The California Legislature created CalSavers so that all Californians have an easy way to save for their future. Research shows that employees are 15 times more likely to save money and put themselves on a path toward retirement security if they have access to a payroll deduction savings program at work. CalSavers helps employees save money automatically from their paychecks, which increases their likelihood of saving for retirement.

All California employers with one or more employees that do not offer a qualified retirement plan, and are not otherwise exempt, must facilitate CalSavers.

You may be exempt from the mandate if your company:

• sponsors a qualified retirement plan;
• is classified as a religious, tribal, or government organization;
• has no employees other than the owner(s) (including self-employed individuals);
• has no employees other than the owner’s spouse; or
• only pays independent contractors.

If you are exempt from the mandate, confirm your exemption to confirm your exemption. You will need your Federal Employer Identification Number (FEIN), California payroll tax ID number from the Employment Development Department (EDD), and the CalSavers access code from your notice.

To comply with the CalSavers mandate, you must:

1. Register: Register. You’ll need your Federal Employer Identification Number (FEIN), California payroll tax ID number (from EDD), and the CalSavers access code from your notice.
2. Add employee information: Add all eligible employees to the CalSavers portal. After the initial upload, employers are required to keep their roster of employees up to date by adding new employees to the portal within 30 days of hire. New employees are eligible upon hire if they are 18 years or older. Existing employees who turn 18 must be added within 30 days of their 18th birthday.
3. Send payroll deductions: For participating employees, ensure payroll deductions are made and transmitted to CalSavers within seven days of each pay date.

CalSavers has resources and support available to assist employers during their onboarding process. Visit the employer resources and employer support webpages for additional FAQs, documents, templates, webinars, and to request client support or one-on-one assistance.

Employers are required by state law to add all eligible employees to the CalSavers portal, even if employees do not wish to participate. Once added, CalSavers will communicate to employees about their options to customize their account or to opt out. Employees cannot opt out until after their information has been added to the CalSavers portal.

Employers can find additional resources to educate employees about CalSavers on the employer resources page. Videos and live webinars are also available for savers.

Per Government Code Section 100033 subsection (b)(2), each eligible employer that, without good cause, fails to allow its eligible employees to participate in CalSavers, on or before 90 days after service of notice of its failure to comply, shall be subject to a penalty of $250 per eligible employee. If noncompliance extends 90 days or more after the initial penalty notice, and if found to be in noncompliance 180 days or more after the penalty notice, an additional penalty of $500 per eligible employee will be imposed as required by state law. Additionally, employers will be penalized annually for continued noncompliance. The California Franchise Tax Board conducts this penalty enforcement on behalf of CalSavers.

To allow employees to participate, eligible employers must register with CalSavers, maintain a roster of eligible employees with the program, and send payroll contributions for participating employees to CalSavers. Employers may be subject to penalties for failure to register before their deadline or failure to complete other actions necessary to allow eligible employees to participate, including failure to upload employee information and failure to submit employee contributions under timeframes established in state regulations.

All employees of a participating employer are eligible for CalSavers if they are at least 18 years old and have the status of an employee under California law. There are no minimum requirements based on hours worked or tenure with their employer. Employees become eligible to participate in CalSavers from the first day they are hired, or upon their 18th birthday. Employers are required to upload their employee’s information to the CalSavers portal within 30 days of their hire date or their 18th birthday.

Eligible employees include:

• Full-time employees
• Part-time employees
• Seasonal employees
• Temporary employees
• Owners/officers who are reported as employees to EDD
• ITIN holders

Employee contributions to the program begin with the first payroll following the 30-day employee decision period. Consequently, depending on the length of employment, short-term employees may not be able to make contributions.

If your employee opts out of CalSavers, you do not need to make payroll deductions for that employee. However, you still must facilitate the program for other eligible employees who have not opted out.

Employees who previously opted out can opt back into CalSavers at any time by logging into their CalSavers account online or by contacting customer support at 855-650-6918.

If all employees opt out, you must still maintain the program. This includes adding new employees, newly eligible employees, and facilitating payroll deductions for employees who opt back in.

You must send payroll deductions to CalSavers for each pay period and ensure that contributions are sent within seven business days of pay day. You can make payroll contributions through the CalSavers online portal or through an integrated payroll system.

For employees with irregular work schedules or varying hours, contributions are based on actual wages earned during that pay period.

For additional support, visit submitting contributions.

Yes, some payroll providers and third parties have established either full or partial integration with CalSavers to help facilitate payroll deductions and date transfers. Contact your payroll provider to see if they offer that service.

Additionally, it is possible to grant a payroll representative delegate access to the CalSavers portal to allow them to facilitate the program.

We recommend contacting your payroll provider to determine the level of service they offer. If you would like assistance, CalSavers Client Services can join the call with your payroll service or other third party. For more information visit the payroll provider support page.

CalSavers offers online guides, tutorials, and customer support as well as onsite assistance with registration, compliance, and technical issues. Access resources and support online, contact the employer service team at 855-650-6916, or the CalSavers field team at fieldsupport@calsavers.com.