Effective January 1, 2023, Senate Bill 1126 expands California’s CalSavers Retirement Savings Program by requiring employers with at least one employee to register for CalSavers by December 31, 2025, if the employer does not sponsor a retirement plan for its employees, or register as exempt if a retirement plan is provided.  Any employer may also choose to have a payroll deposit retirement savings arrangement (such as an IRA) to allow employee participation in the program.  However, SB 1126 excludes from the definition of “eligible employer” any sole proprietorships, self-employed individuals, or other business entities that do not employ any individuals other than the owners of the business. Previously, CalSavers did not apply to employers with fewer than five employees.  See our article here for more details on the CalSavers program.

Register for  CalSavers or certify as exempt here.