CalSavers Registration Deadline Is Approaching: What California Employers Need to Know Before December 31, 2025

As the end of the year approaches, many California employers are discovering — sometimes for the first time — that they may be required to register for CalSavers, California’s state-sponsored retirement savings program. With penalties looming and confusion around who is required to comply, understanding the rules now can prevent costly mistakes later.

At Velin & Associates, Inc., we frequently field questions from small business owners, online sellers, medical professionals, creators, and high net worth individuals who are unsure whether CalSavers applies to them — especially household employers and businesses where the owner is also an employee.

Below is a practical breakdown of the CalSavers mandate, who must register, who is exempt, and how common real-world scenarios apply to the types of clients we serve.

Who Must Register for CalSavers by the End of 2025?

By December 31, 2025, all California businesses that:

• Do not offer a qualified retirement plan
• Have at least one California employee age 18 or older
• Pay wages reported to the EDD

are required to register with CalSavers.

This requirement applies even if the business has:

• Only one employee
• Part-time or seasonal workers
• Employees who may ultimately opt out

Once registered, employers must facilitate payroll deductions unless an employee opts out within 30 days of being contacted by CalSavers.

Failure to comply can result in penalties of $250 per employee, increasing to $500 per employee per year after 90 days of continued noncompliance.

Household Employers: Yes, CalSavers May Apply

One of the most common areas of confusion involves household employers — individuals who employ household workers such as nannies, caregivers, or housekeepers.

According to CalSavers guidance, household employers ARE considered mandated employers if:

• The worker is a California W-2 employee
• Wages are reported to the EDD (including via Form DE38HW)
• The employer receives a CalSavers notice

Household employees are counted as eligible employees for CalSavers purposes.

Important clarification:
If a household employer does not receive a CalSavers notice, CalSavers has stated that no action is required at this time.

Example: Household Employer

A high net worth individual employs a full-time caregiver and files required payroll reports with the EDD. The employer receives a CalSavers notice requesting registration. Because the caregiver is a W-2 employee and no retirement plan is offered, registration would be required unless the employee opts out after enrollment.

This situation commonly arises among professionals, doctors, and high-income households who may not consider themselves “business owners” — but are treated as employers under California law.

Businesses Where the Owner Is the Only Employee

Another frequent question we see involves businesses where the owner (and possibly their spouse) is the only employee.

If the only employees are the owner and/or the owner’s spouse, the business is exempt from the CalSavers mandate.

This exemption applies to:

• Sole proprietors
• Single-member LLCs
• S corporations where only the shareholder-owner (and spouse) is employed

However, some exempt businesses have still received CalSavers notices due to EDD reporting mismatches.

Example: Owner-Only S Corporation

An S corporation owned by a filmmaker employs only the shareholder-owner and their spouse. Even if a CalSavers notice is received, the business may certify its exemption by registering and confirming that there are no employees other than the owners.

This scenario frequently affects CPA for Filmmakers, CPA for Creators, and CPA for High Net Worth Individuals who operate through S corporations.

What If You Receive a CalSavers Notice by Mistake?

If an exempt business receives a CalSavers notice, CalSavers instructs employers to:

1. Register on the CalSavers website
2. Check “My Company does not offer a qualified retirement plan”
3. Then select “My Company currently has no California employees or no employees other than the owners”
4. Certify the exemption

Skipping this step can still result in penalty notices — even if the business is technically exempt.

New Businesses Formed in 2025

Businesses created in 2025 generally have until December 31 of the year after hiring their first California employee to register — provided that employee is reported to the EDD.

Example: Online Business Startup

A Shopify store owner launches an ecommerce business in 2025 and hires their first California-based assistant mid-year. Because the employee is reported to the EDD, the CalSavers registration deadline would be tied to the following year — not immediately.

This timing nuance is critical for CPA for Shopify Store, CPA for Online Commerce, and Amazon Business CPA clients who scale quickly.

Payroll Integration: Reducing the Administrative Burden

CalSavers offers payroll integration through approved third-party vendors. For a small fee, employers can automate:

• Employee enrollment
• Payroll deductions
• Contribution remittances

This option can significantly reduce compliance headaches for small businesses that already manage payroll through software.

Why This Matters for the Clients We Serve

CalSavers compliance issues frequently arise among:

• YouTubers and TikTok creators hiring assistants
• Shopify and Amazon sellers with part-time staff
• Dental and medical practices with small teams
• Household employers of caregivers or nannies
• High net worth individuals with multiple income structures

Missing the registration deadline — even unintentionally — can result in penalties that add up quickly.

How Velin & Associates, Inc. Helps

We assist clients by:

• Determining whether CalSavers registration is required
• Identifying exemptions and correcting erroneous notices
• Advising on registration vs. certification of exemption
• Coordinating payroll reporting and compliance timing
• Integrating retirement compliance into broader tax planning

California retirement mandates continue to expand, and CalSavers is one of the most commonly misunderstood requirements facing small employers today.

Need Help Determining Whether CalSavers Applies to You? Contact us today: visit our website.

Velin & Associates, Inc

8159 Santa Monica Blvd STE 198/200 West Hollywood, CA 90046
323-902-1000
dmitriy@losangelescpa.org

CPA for YouTubers | CPA for Shopify Store | CPA for Online Commerce | CPA for Creators | Shopify Store CPA | CPA for Filmmakers | CPA for Amazon Business | Amazon Business CPA | CPA for Dental Practice | Dentist CPA | Dental Business CPA | Online Commerce CPA | CPA for TikTokers | CPA for Doctors | CPA for Medical Practice | CPA for High Net Worth Individuals