You may have received notification from the California EDD (Employment Development Department) regarding the mandated registration with CalSavers Retirement Savings Program. CalSavers is a state operating retirement savings program for California employees.

This is a friendly reminder that the filing deadline is December 31, 2025.

In 2022, California legislature passed SB-1126 which expanded the mandated registration requirement from 5+ employees to one employee. This means that anyone who has a California employee is required to register with CalSavers. Household employees are included.

You register in one of two ways:

1.      Register as Exempt if your company currently has a retirement savings plan

2.      Register and enroll your employees if you do not sponsor a retirement savings plan

If you Register your employees, they will be automatically enrolled in CalSavers and will have the opportunity to opt out of participation or participate.  The choice is the employee’s.

Following are some links which give you more detail regarding the filing process:

https://edd.ca.gov/en/employers/calsavers

https://employer.calsavers.com

California SB 1126 (2021-2022): CalSavers expansion

• What it does: Expands the requirement for employers to have a payroll deposit savings arrangement (like CalSavers) to all employers with at least one employee, if they do not already offer a retirement plan.
• Status: This bill was chaptered into law as Chapter 192, Statutes of 2022.
• Key changes:
  • Expansion of eligibility: Previously, the mandate only applied to employers with five or more employees.
  • Timeline: The new requirement for employers with one or more employees to have a payroll deposit savings arrangement is effective by December 31, 2025.
  • Exemptions: Governmental, tribal, and religious organizations remain exempt.
• How it affects employers: Employers with fewer than five employees must now consider whether to enroll in the CalSavers program if they don’t offer another retirement plan.
• Employee contribution: The bill also outlines employee contribution rules, including a default contribution of 3% and automatic annual increases up to 8%, which employees can opt out of.