🚨 California Expands Retirement Plan Mandate — Action needed by December 31, 2025
California has expanded its retirement mandate to the smallest employers. If you have even one W-2 employee (other than the owner or owner’s spouse) and do not sponsor a qualified plan, you must either (a) adopt a private plan (e.g., 401(k), SIMPLE IRA) or (b) register for CalSavers by December 31, 2025.
Penalties for non-compliance: $250 per eligible employee if you remain non-compliant 90+ days after notice, plus an additional $500 per eligible employee at 180+ days. Those add up quickly.
Why It Matters
- Compliance: Non-compliance triggers penalties of $250 per employee after 90 days and $500 per employee after 180 days.
- Flexibility: You may choose between a private retirement plan (more control, possible tax benefits) or the state-run CalSavers program.
- Exemptions: If you already sponsor a retirement plan, simply file an exemption with CalSavers.
Quick Decision Guide
- Do you have at least one W-2 employee (not counting owner/spouse)?
- ❌ No → Exempt (you may opt in voluntarily).
- ✅ Yes → Continue.
- Do you already have a plan?
- ✅ Yes → File CalSavers exemption form.
- ❌ No → Adopt a private plan or register with CalSavers by 12/31/25.
Need help fast (or prefer a turnkey setup)?
- We’re happy to review costs, design options, payroll integration, and tax implications so you choose the most cost-effective path.
- Or, contact Tyler at ADP directly—he’s offering aggressive pricing for our clients and can stand up a compliant plan quickly. (Tell him you’re with our firm.)
✅ Final Takeaway
Don’t wait until penalties hit—take action now.
- Special Deal: Contact Tyler Mata at ADP (📞 928-243-4860) for an exclusive offer for our clients.
- Need Guidance? Call our office—we’ll help you review options and keep you compliant.
- Deadline: December 31, 2025
Closing Note:
We’re here to keep your business sharp, your taxes optimized, and your future protected. If you’d like to see whether this strategy fits your situation, reach out today. 855-922-WeDo (9336)
Author: Mike DiSabatino
About the author:
Mike DiSabatino is the founder of SharpCFO and principal of We Do Books, Inc., a boutique finance and tax firm based in Arizona. A former CPA and long-time CFO, Mike blends hands-on operating discipline with deep tax strategy and banking know-how. He’s uniquely “dual-track”: while running a CPA firm and serving as a CFO, he also operated as a California real-estate broker originating and underwriting mortgages—so he understands both corporate credit and the personal, lender “global cash flow” lens. Mike advises growth-minded owners on cash flow, bank packages, pricing, exits, asset protection, and smart tax planning that actually holds up. When you need big-league finance without the big-company bloat, he’s your guy.