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