Attention California Small Business Owners: Retirement Plan Deadline Approaching

By 𝗗𝗲𝗰𝗲𝗺𝗯𝗲𝗿 𝟯𝟭, 𝟮𝟬𝟮𝟱, all California employers with 𝗮𝘁 𝗹𝗲𝗮𝘀𝘁 𝗼𝗻𝗲 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗲 must comply with the state’s retirement savings mandate.

Here’s what you need to know:

📌 𝗪𝗵𝗮𝘁’𝘀 𝗥𝗲𝗾𝘂𝗶𝗿𝗲𝗱?

You must either:

✅ Offer a 𝗾𝘂𝗮𝗹𝗶𝗳𝗶𝗲𝗱 𝗿𝗲𝘁𝗶𝗿𝗲𝗺𝗲𝗻𝘁 𝗽𝗹𝗮𝗻 (like a 401(k), SEP IRA, or SIMPLE IRA),

𝗢𝗥

✅ 𝗥𝗲𝗴𝗶𝘀𝘁𝗲𝗿 𝗳𝗼𝗿 𝗖𝗮𝗹𝗦𝗮𝘃𝗲𝗿𝘀 — the state-sponsored retirement savings program.

📌 𝗪𝗵𝘆 𝗡𝗼𝘄?

With the passage of 𝗦𝗲𝗻𝗮𝘁𝗲 𝗕𝗶𝗹𝗹 𝟭𝟭𝟮𝟲, the state expanded its retirement mandate to include 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗿𝘀 𝘄𝗶𝘁𝗵 𝟭 𝘁𝗼 𝟰 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗲𝘀. Previously, only businesses with 5+ employees were covered.

📌 𝗞𝗲𝘆 𝗗𝗲𝗮𝗱𝗹𝗶𝗻𝗲𝘀 & 𝗣𝗲𝗻𝗮𝗹𝘁𝗶𝗲𝘀

Deadline: 𝗗𝗲𝗰𝗲𝗺𝗯𝗲𝗿 𝟯𝟭, 𝟮𝟬𝟮𝟱

Penalties for non-compliance:

🔸 $250 per eligible employee after 90 days

🔸 Additional $500 after 180 days

📌 𝗘𝘅𝗲𝗺𝗽𝘁𝗶𝗼𝗻𝘀 𝗔𝗽𝗽𝗹𝘆

You’re exempt if you:

Already offer a qualified retirement plan

Have no employees (owner-only)

Are a government, religious, or tribal entity

🧠 𝗣𝗿𝗼 𝘁𝗶𝗽: Don’t wait until Q4 2025. Register and complete the work now to protect your business from fines and support your employees’ financial futures.

If you have questions about setting up a plan or navigating CalSavers, let’s connect. This is a great opportunity to offer your team long-term value — and stay compliant.

#SmallBusiness #CaliforniaBusiness #CalSavers #RetirementPlanning #Compliance #TaxTips #EmployeeBenefits #SB1126

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.