CA Employers - Don’t Ignore CalSavers Notices Even If You Already Offer a Retirement Plan

This week, CalSavers sent electronic notices to thousands of California employers and many may miss them if they land in spam or junk folders. Don’t overlook this step, as failing to respond can lead to compliance issues and potential penalties.

If you’re a California employer with even one W-2 employee, you must either enroll in CalSavers or formally notify the state that you already offer a qualified retirement plan.  Here’s the important part: even if you do have a qualified plan, you’re still required to log in and report your exemption.

If your business offers any of the following, you are exempt from participating in CalSavers:

• 401(a) – Qualified Plans (including profit-sharing and defined benefit plans)

• 401(k) plans (including MEPs or PEPs)

• 403(a) Qualified Annuity Plans or 403(b) Tax-Sheltered Annuity Plans

• 408(k) SEP (Simplified Employee Pension) Plans

• 408(p) SIMPLE IRA Plans

• Payroll deduction IRAs with automatic enrollment

If your organization has one of these plans, you do not need to enroll in CalSavers, but you MUST notify them through the employer portal. Log in to the CalSavers employer portal and file your exemption - LINK HERE

This process takes about five minutes. Have your EIN and CA EDD Account Number ready. You’ll also be prompted to obtain an access code. Once you have all three numbers, you can submit the information confirming which qualified retirement plan you offer.

For more details and resources on CalSavers, please visit their official website. If you'd like support navigating CalSavers, assessing plan compliance, or handling employee notices, Rising Tide HR is here to help.