If you’re a household employer in California—hiring a nanny, housekeeper, senior caregiver, or other domestic worker—you may be subject to a new legal requirement under the CalSavers Retirement Savings Program. As of December 31, 2025, all California employers with at least one W-2 employee must either offer a qualified retirement plan or register for CalSavers.
In this article, we’ll explain what CalSavers is, how it affects household employers, and how a trusted payroll service like HomePay can make compliance simple and stress-free.
What Is CalSavers?
CalSavers is a California state-run retirement savings program designed for private-sector employees who don’t have access to an employer-sponsored retirement plan. It provides workers with an easy way to contribute to a Roth IRA through automatic payroll deductions.
- Default contribution: 5% of gross pay (adjustable by the employee)
- Employee-owned: Employers do not contribute to the account
- Portable: Employees keep their account even if they change jobs
For household employees like nannies, housekeepers, or caregivers, CalSavers offers a simple path to long-term financial security.
Are Household Employers Required to Register for CalSavers?
Yes—if you employ at least one W-2 household employee in California and don’t already offer a retirement plan, you are legally required to register with CalSavers by December 31, 2025. This applies to:
- Families hiring nannies or newborn care specialists
- Households employing housekeepers, senior caregivers, or estate staff
- Any individual or family issuing W-2s for domestic employees in California
CalSavers Requirements for Household Employers
If you’re required to participate, here’s what you must do:
- Register with CalSavers at www.calsavers.com
- Add eligible employees to your CalSavers account within 30 days of their start date
- Facilitate payroll deductions for employees who participate
- Submit contributions to CalSavers within 7 business days of payroll
- Keep records updated, including employee status and contribution changes
- While household employers must facilitate CalSavers, you are not responsible for contributing your own funds or providing investment guidance.
What Are the Penalties for Not Complying with CalSavers?
Failure to register or meet CalSavers requirements can result in steep penalties:
- $250 per eligible employee for initial non-compliance
- $500 per employee if non-compliance continues after 90 days
If you’re unsure whether this law applies to your household, it’s best to consult a payroll expert or register proactively to avoid fines.
How HomePay Can Help With CalSavers Compliance
Managing CalSavers alongside taxes, withholdings, and payroll deadlines can be overwhelming. That’s where HomePay, the leading payroll service for household employers, can help.
With HomePay, you get:
- Automatic calculation of CalSavers deductions
- Timely contribution submissions on your behalf
- Year-round compliance with tax and employment laws
- Employee onboarding, paystubs, and W-2 generation
Whether you’re hiring your first nanny or managing multiple household staff, HomePay ensures you stay compliant and stress-free.
Explore HomePay Services or HomePay through Town + Country Resources.
Quick Checklist for Household Employers
- Determine if you already offer a qualified retirement plan
- If not, register with CalSavers before December 31, 2025
- Notify your employees about CalSavers participation
- Set up payroll deductions for those who opt in
- Consider using a payroll provider like HomePay to manage compliance
Need Help with CalSavers and Payroll?
We work with thousands of California families to simplify household employment. Let us help you navigate CalSavers and other compliance requirements with ease.
Contact us today to learn more or get a free consultation OR contact a household payroll expert.
