Check CalSavers off your to-do list with Guideline

California businesses with at least one employee have to offer
a retirement plan by Dec. 31, 2025, or face penalties.2

Join the 50,000+ businesses that trust Guideline.3

See our Privacy Policy to learn how we use and protect your information.
50K+
businesses3
1M+
savers4
93%
customer satisfaction score5
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Innovation by Design Award 20246

What is CalSavers?

Established in 2016, the law requires California employers with at least one employee to offer the state-sponsored plan, CalSavers, or a qualified alternative like a Guideline 401(k) by December 31st of the year in which your business becomes eligible.2 Let’s look at your options.
  • 1-4 employees

    December 31, 2025

  • 5+ employees

    Deadline passed, penalties being enforced

"CalSavers is not free if it takes up your time and your worry."

Cliff J., North Valley Counseling

Client of Guideline. Views may not be representative of other clients.
See our Privacy Policy to learn how we use and protect your information.

The penalties could cost you thousands

  • Fines in California
up to $750/employee
You'll owe $250 per employee the first 90 days you're out of compliance, then an additional $500 per employee if you're still out of compliance at 180 days.2
  • Guideline Starter
$39/month + $4/month per active participant7
Starter’s simplified plan design and no employer matching helps
make it easy and affordable to meet the mandate.
Why pay hundreds in penalties when you can save thousands with tax credits?1
See if you’re eligible

Compare Guideline Starter with CalSavers

Guideline logo
CalSavers
  • Retirement plan type
    Starter 401(k)
    Roth IRA
  • Tax benefit
    Pre or Post tax
    Post-tax only
  • Employee asset-based fee
    0.15%8
    0.30%9
  • Additional active employee fees
    None10
    $18/year account fee10
  • Professionally managed portfolios11
    6
    0
  • Investment options11
    40
    17
  • Payroll integrations
    25+ platforms
    Not disclosed
  • Exempt from IRS testing
    Yes
    Yes
  • Scales to a standard 401(k)
    Yes
    No
The state doesn’t specialize in retirement. We do.
  • Lightening bolt simple icon.

    ~9 minutes to get started

    We help get you set up and enroll your employees for you, while CalSavers can add more work to your already full plate.
  • Two hands shaking simple icon.

    Easy and affordable

    74% of customers went with Starter over the state’s program due to less complexity or low cost.12
  • Icon consisting of three people beneath a heart shape

    Lower employee fees

    Your team’s dollars can go further with Guideline thanks to lower employee fees than CalSavers.8,9 Learn more
Rich H.Pallas Care
It wasn’t worth the business risk, or the stress, to do a state program without a payroll integration. Guideline Starter was an easy choice.Client of Guideline. Views may not be representative of other clients.

Direct integrations. Accurate information.

All of our payroll integrations are direct and custom-built—no third-party software to introduce security risks or slow you down with inaccuracies. See all payroll integrations
  • and more
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Your new 401(k) could be 100% covered

If you’re starting a new 401(k), your small business may be eligible to receive up to $16,500 in tax credits over the plan’s first three years to help offset plan costs.1

Skip the state mandate stress.
Get compliant in just 10 minutes today.

See our Privacy Policy to learn how we use and protect your information.

CalSavers FAQs

What is the mandate?

The CalSavers Program was created to encourage more people to save for retirement. It requires California employers with at least 1 employee to provide access to a retirement plan. The plan can either be a private plan like a 401(k) or the state-sponsored plan.

When does the mandate take effect?

For businesses with 5+ employees, the initial deadline has already passed. For newly established businesses or businesses that hire their 5th employee, the deadline is December 31st each year.

For companies with 1-4 employees, the deadline is December 31, 2025.

Which employers are impacted by the retirement mandate?

You are eligible to participate in the CalSavers Program if:

  • Your business is registered to conduct business in the state of California
  • You have at least one California based employee
  • Your employees must be 18 years old to enroll in CalSavers
  • You don’t currently offer a qualified retirement savings program to your employees

Are there penalties for not offering a retirement benefit?

Yes. Employers will be subject to a penalty equal to:2

  • $250 per eligible employee if noncompliance extends 90 days or more after being served a notice of failure to comply
  • Additional $500 per eligible employee if noncompliance extends 180 days or more after the notice
  • An annual notice, including an additional $500 penalty per employee that may be issued until compliance is reached.

Does Guideline satisfy the retirement mandate?

Yes. All of Guideline's 401(k) plans are designed to satisfy state program requirements and are priced to be affordable for businesses of all sizes.

Do I have any fiduciary responsibilities?

Just like with the state offering, you won’t be responsible for investment option choices. We’ll serve as the ERISA 3(38) fiduciary which means we’re responsible for selecting and managing all investment options — our goal is to reduce your liability and provide you with peace of mind.11 Learn more

Can I move from Guideline Starter to a standard 401(k)?

While it is possible for a plan to convert from a Starter 401(k) to a standard 401(k) plan at Guideline, the transition cannot take place until the beginning of the next calendar year. Learn more here.