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April 15, 2025
CalSavers Mandate – What Small California Businesses Need to Know Before 2026
CalSavers Deadline 2025 – What Small Businesses in Orange County and Los Angeles County Need to Know
California’s CalSavers mandate was established to expand access to retirement savings for workers who don’t currently have that option through their employer. For small businesses across Orange County, Los Angeles County, and throughout the state of California, the final deadline to meet these requirements is December 31, 2025.
Benefit Equity Inc. (BEI), based in Santa Ana, CA has helped thousands of small-mid-sized businesses establish and manage retirement plans for over 30 years. Our experienced retirement plan consultants understand the compliance requirements of CalSavers and can also explain why other plan options may be a better fit for your business and your employees.
Key Requirements and the 2025 Deadline
California requires employers to either register for CalSavers or offer a qualified retirement plan if they do not already provide a retirement plan. The CalSavers’ program rollout has been phased by employer size.
California employers are responsible for tracking their own deadlines and acting promptly, and the final deadline for employers with one to four employees is December 31, 2025.
CalSavers is a Roth IRA program, as opposed to a traditional employer-sponsored retirement plan.
The program applies to any business with the minimum number of employees who meet the following criteria:
● Employees must be at least 18 years old.
● Employees must be paid through California payroll.
● Employees must not be currently covered by a qualifying retirement plan.
● The criteria above apply to and include part-time, seasonal, and temporary workers.
Businesses with only the owner or the owner and spouse as employees are exempt. Employers who previously offered a retirement plan but ended the plan, may now fall under the mandate.
Examples of Common Scenarios
New Businesses Starting in 2025
A business that launches mid-year and that hires two or three employees, may need to register for CalSavers by the end of the year. In general, new businesses have up to 12 months from becoming subject to the law to register.
Growing Employers
An employer with three employees in January, and one that grows to five employees during the summer, will need to register by the end of the year, unless a qualified plan is put in place.
Businesses that Ended a Previous Plan
If you had a retirement plan and discontinued it at some point, you are still required to comply unless another qualified plan is established.
Employers with Part-Time Workers
CalSavers includes any employee over 18, regardless of the number of hours worked, which means part-time or seasonal help will count toward your total employee count and eligibility.
For more examples, see our blog post
Who Qualifies as a Retirement Plan Participant?
Compliance Responsibilities and Limitations
What Employers Must Do to Comply
● Register their business or certify exemption
● Track eligible employees
● Deduct contributions from employee paychecks (default is five percent, with annual auto-increase)
● Submit contributions to the state program
● Keep employee lists updated
What Employers Cannot Do
● No employer contributions allowed
● No ability to manage employee accounts
● No investment advice or plan customization
Non-Compliance Penalties
● $250 per eligible employee after 90 days of noncompliance
● An additional $500 per employee after 180 days
Source: https://www.calsavers.com/home/frequently-asked-questions.html
How BEI Supports Small Businesses
At Benefit Equity Inc., we work directly with small-to-mid-sized businesses throughout Orange County and Los Angeles County to meet state retirement plan requirements.
We begin by helping you determine whether CalSavers applies to your business, and if this is the case, our skillful retirement plan consultants assist with registration and ongoing administrative requirements.
For many businesses, CalSavers is only the minimum retirement plan required, and it does not offer long-term flexibility or value. BEI provides an alternative path with retirement plan designs that can better support business growth and employee financial planning.
Our Qualified Retirement Plan Options Include:
● Employer contribution capabilities
● Broader investment options
● Tax advantages for both businesses and employees
● Greater flexibility in plan design and administration
At Benefit Equity Inc., we also manage ongoing compliance, reporting, and plan administration, so you can focus on successfully running your company. For businesses that want to improve retention or benefits, without increasing HR burden, a qualified plan may be a better fit.
You can read more at Small Business Retirement Options – Simple and Affordable Solutions
Take Action Now
With the December 31, 2025 deadline in place, small business owners who delay risk fines and added stress during tax season. Whether you're starting fresh or replacing a discontinued plan, our knowledgeable retirement plan consultants will explain your options clearly and help you stay compliant without adding to your workload.
Contact Benefit Equity Inc. Today
We serve businesses across Orange County, Los Angeles County, and clients throughout California. Let’s discuss whether CalSavers is right for your company, or perhaps whether a different retirement plan would benefit your business.
To learn more about our expansion retirement plan design and administration services, visit www.benefitequity.com.
Call BEI at 714-480-1364
Connect with us here https://www.benefitequity.com/connect
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