CalSavers’ mandatory state-run Roth IRA program enables employee retirement savings through automatic payroll deductions.  Employers face no fees or contribution requirements, while eligible employees can opt out or change their contributions at any time.

Registration deadlines depend on the number of employees:

• September 30, 2020 (101 or more)
• June 30, 2021 (51-100)
• June 30, 2022 (5-50)
• December 31, 2025 (1-4)

Under Senate Bill 1126, California employers with up to four employees must register by December 31, 2025, unless they:

• Employ only owners;
• Sponsor a qualified retirement plan (e.g., 401(k), SIMPLE IRA, SEP IRA, etc.);
• Are a government, religious, or tribal organization; or
• Have closed or been sold.

If they miss their deadline, employers face a penalty of $250 per eligible employee, increasing to $500 after 180 days.

Take-Aways:

By year-end, small employers must either request an exemption or register to enroll eligible employees and set up payroll deductions.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• Co-Motion or Commotion? Workplace Policy & Forms for 2025 (April 24, 2025)
• Expanding Retirement Account Opportunities (April 15, 2022)
• Mandatory Options for Retirement Funding (June 4, 2021)

Cindy Bamforth
June 6, 2025