What California Employers Need to Know About CalSavers

California has taken a step to address the retirement savings gap for millions of workers across the state. The CalSavers Retirement Savings Program is a state-mandated initiative aimed at ensuring employees have access to retirement savings plans—even if their employers don’t currently offer one.

As a small to medium-sized business leader, this law could affect you. Here’s what you need to know and how Poprouser can help you navigate compliance while building long-term trust and value for your employees.

What is the CalSavers Law?

CalSavers is a retirement savings program signed into law on September 29, 2016, designed for California employees, whose employers don’t provide a qualified workplace retirement plan (like a 401(k)). It requires employers with one or more employees to facilitate access to this program. The CalSavers law registration deadlines are (by size of business):

The program is simple and semi-automated:

• Employees are auto-enrolled to contribute via payroll deductions.
• The funds are invested in a Roth IRA unless an employee opts out.

Employers do not contribute to the plan—your role is solely to register, offer access, and facilitate contributions.

Who Does CalSavers Apply To?

The program addresses a major workforce challenge:

• Nearly 7.5 million Californians—half the private-sector workforce—lack access to employer-sponsored retirement plans.
• Retirement insecurity impacts workforce stability, employee satisfaction, and long-term productivity.

By mandating access to CalSavers, the state was aiming to reduce financial strain on aging workers and create a healthier economic future. At the same time, the state increased administrative burden on employers without a qualified group retirement plan, who must now include CalSavers enrollment option to their onboarding programs, and set up withholding for employee contribution deductions in their payroll platforms.

Employer Responsibilities Under CalSavers

Here’s a simplified breakdown of what employers need to do:

1. Register for CalSavers (Here)
   • Employers without a retirement plan must register their business online via the CalSavers portal.
2. Notify Employees
   • Once registered, employers must inform employees about the program and auto-enroll eligible workers. Employees may opt out if they choose.
3. Facilitate Payroll Contributions
   • Set up automatic payroll deductions for participating employees. Contributions are post-tax, and the program handles investments.
4. Stay Compliant
   • Ensure ongoing reporting and contributions are accurate and timely.

How Does CalSavers Benefit Employers?

While this is a mandate, CalSavers offers employers some relief:

• No Employer Contributions: Unlike a 401(k), employers don’t match or contribute to employee savings. This is a Roth IRA.
• Streamlined Process: Minimal administrative work, with CalSavers managing funds and reporting, and you only collecting employee deductions from your payroll system.
• Boost Retention and Morale: Employees value financial wellness programs, improving satisfaction and retention rates.
• Avoid Penalties: Staying compliant is simple and affordable.

Challenges for Employers

Despite its benefits, implementing CalSavers can still be challenging, especially for small businesses without an HR team. Common obstacles include:

• Navigating registration and communication processes.
• Ensuring payroll systems align with CalSavers requirements.
• Managing compliance deadlines to avoid penalties.

This is where Poprouser can help.

Your Partner in People Operations and Compliance

At Poprouser, we specialize in helping small and mid-sized businesses navigate complex HR and compliance challenges—like CalSavers.

Here’s how we support you:

• Full CalSavers Facilitation: From registration to payroll integration, we ensure you meet all compliance requirements.
• Employee Communication: Craft clear and engaging messaging to educate your team about the benefits, and include CalSavers into new hire onboarding.
• Payroll & Systems Support: Align your payroll systems with CalSavers to guarantee seamless contributions.
• Future-Proof Company Retirement Plans: Beyond compliance, we help explore additional retirement solutions tailored to your workforce as the business grows.

Stay Compliant, Build Trust

CalSavers is an opportunity to show your employees you care about their future. By providing access to retirement savings, you create a stronger, more engaged workforce.

At Poprouser, we simplify the process so you can focus on what matters most: growing your business and developing a winning team.

• Author
• Recent Posts

Cody Bess

CEO at Poprouser

Cody Bess is CEO of Poprouser and likes to work with passionate business owners. His career spans more than 20 years, including military leadership, tech, and consulting, and now works to bring People to the forefront and create thriving ecosystems. Connect with Cody on Twitter or LinkedIn.

Latest posts by Cody Bess (see all)

• Washington DC Labor Laws for HR Compliance – 2025 - January 2, 2025
• Commonwealth of Virginia Labor Laws – 2025 - December 27, 2024
• What California Employers Need to Know About CalSavers - December 19, 2024