Starting in 2020, businesses with at least five California-based employees, and at least one of who is age 18, will be required by state law to begin offering a workplace retirement savings program (if it does not already) via the private market or through the CalSavers Retirement Savings Program (CalSavers).

CalSavers is a low-cost, automatic enrollment payroll deduction IRA program. It is voluntary and provides portable retirement savings with professionally managed investments and oversight from a public, transparent board of directors, chaired by the California State Treasurer.

Eligible employers can register for CalSavers at any time and will be required to comply by the following deadlines:

 Size of Business  Deadline
 Over 100 employees  9/30/20
 Over 50 employees  6/30/21
 5 or more employees  6/30/22


CalSavers is operated solely through participant fees, so there is no cost paid by taxpayer revenue.

Employees should know a CalSavers account is a Roth IRA (contributions are taken out of paychecks after tax). The default savings rate is 5% of gross pay, and they can change their rate at any time. They will be auto-enrolled after 30 days from employer registration, if they do not opt out and will begin saving through payroll contribution. They can opt out and back in at any time. Their account is portable, and will stay with them even if they leave their workplace.

Employers can typically register their business in just a few minutes. Their role is limited by facilitating the program, by adding employees and submitting participating employee’s contributions via payroll deduction. There are no fees for employers, and they cannot make contributions to employee accounts.

For additional information and to register, visit the CalSavers website.

BPM for HR and People Services

BPM is one of the largest California-based accounting and consulting firms, ranking in the top 50 in the country. Let us help you change the way your workforce engages at work and how your company engages with your workforce. From complete HR outsourcing, consulting and recruiting to PEO transitions and an engaged culture, our HR and People Services group can scale up or down with your organization and help keep your options open from the beginning. Whether you need project based help, a long term partner, or just a nudge in the right direction, we have the expertise to deliver an effective and strategic solution to any HR challenge. Contact today by visiting

Headshot of Jill Pappenheimer.

Related Insights