The CalSavers Deadline Is Coming Soon (Don't Panic, Here’s What To Do)
Can we be honest for a second? December is a whirlwind. Between holiday travel, coordinating family visits, and wrapping up the year, your to-do list is likely already a mile long. But if you employ a nanny or domestic staff in California, there is one crucial item you need to address before we ring in 2026.
The deadline to register for the CalSavers Retirement Savings Program is December 31, 2025.
We know compliance updates aren't exactly the most festive topic, but getting this sorted now prevents penalties later and—more importantly—supports the financial future of the incredible people working in your home.
What is CalSavers?
CalSavers is a state-sponsored retirement savings program designed to help California's workforce save for the future. Specifically, it's for employees whose employers don't already offer a qualified retirement plan like a 401(k), SIMPLE IRA, or SEP IRA.
For employers in California:
If your business or household employs even one worker and does not currently offer a qualified retirement plan, you need to register with CalSavers or claim an exemption by December 31, 2025.
Does This Apply to Me?
If you have at least one paid employee (yes, nannies count!) and you do not currently offer a qualified retirement plan, this applies to you.
Families:
If you have paid employees, and you do not currently offer a qualified retirement plan, this program likely applies to you.
Nannies/Employees:
If you are a W-2 employee working for an employer in California who does not offer a qualified retirement plan, you are eligible for CalSavers.
How Does It Work?
Once an employer is registered, CalSavers will automatically enroll eligible employees into a Roth IRA. A 5% contribution rate will be set, which is then deducted directly from their pay.
For employees, this means:
- You will be automatically enrolled when your employer registers.
- You have the flexibility to adjust your savings rate, choose different investment options, or even opt out of the program entirely.
- You'll have a 30-day window to make these choices after you're added to the system.
- It’s important to note that this program is employee-funded; your employer does not make contributions to your CalSavers account.
The Clock is Ticking: Here is Your Action Plan
You have until December 31, 2025, to take action. Here is exactly how to handle it so you can get back to your holiday plans:
- Check Your Status: Do you already offer a qualified retirement plan?
- YES: You are exempt! But you still need to log in and formally claim that exemption by the deadline.
- NO: You need to register your business (or household) with CalSavers.
- Register: Head to the CalSavers portal. You’ll need your Federal Employer Identification Number (FEIN) or Tax Identification Number (TIN) handy.
- Upload Employee Info: Once registered, you will upload your employee’s information to the portal.
- Payroll Deduction: If your employee stays enrolled (they can opt out!), you will deduct their contributions directly from their paycheck and submit them to CalSavers within 7 days of payroll.
What Happens If I Miss the Deadline?
We want to help you avoid this part! Non-compliance can lead to penalties starting at $250 per employee after 90 days, and escalating to $500 per employee after 180 days. Let's keep that money in your pocket (or your nanny's bonus!) instead.
Why We Love This (And You Should Too)
As a Certified B Corporation™, we are huge fans of anything that expands equity and financial security for domestic workers. This program is a significant stride in helping employees across California build for their retirement. By getting this set up, you aren't just checking a compliance box; you are actively supporting the long-term well-being of the person who cares for your family.
Need More Help?
For a deep dive into the specifics of household employment and this program, we highly recommend reading this comprehensive article from our friends at HomeWork Solutions: What California Household Employers Need to Know About the CalSavers Retirement Program.
You’ve got this! Let's get this crossed off the list so you can enjoy a peaceful, compliant start to 2026.
