California, it’s time to offer a 401(k)

All California employers have to offer a retirement plan by
December 31st, 2025, or face penalties.1

Join the 60,000+ businesses2 that trust Guideline.

See our Privacy Policy to learn how we use and protect your information.
60k+
businesses3
1M+
savers4
93%
customer satisfaction score5
9/10 star rating on Business.com
Top 401(k) for small business6

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.1

Just learning about this? You’re not alone. 56% of California small businesses are unaware of the deadline.7

Guideline is here to help. 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.
65% of business owners don’t know about the fines.7

They 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.1
  • Guideline Starter
$39/month + $4/month per active participant8
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?9
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%10
    0.30%11
  • Additional active employee fees
    None12
    $17/year account fee12
  • Professionally managed portfolios13
    6
    0
  • Investment options13
    40
    17
  • Payroll integrations
    25+ platforms
    Not disclosed
  • Exempt from IRS testing
    Yes
    Yes
  • Scales to a standard 401(k)
    Yes
    No
  • Monthly employer fee
    $39/month + $4 per participant8
    Free

91%

say CalSavers isn’t really “free”14

Admin time and payroll effort can add up, making CalSavers quite costly.

Guideline customers say they’ve saved 3.5 hours a month on plan admin14 since switching from CalSavers to Guideline.

California doesn’t specialize in retirement. We do.

Customers who switched from CalSavers to Guideline say they enjoy a better experience.15 Of those surveyed:
  • 100% eliminated payroll errors since switching
  • 93% say Guideline support is superior to CalSavers
  • 86% wish they had initially gone with Guideline
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
  • and more

Pick a provider that has your back

The results are in – a Guideline 401(k) can be a breeze to manage:14
  • 96% say Guideline plans are easy to set up
  • 97% say Guideline plans are easy to manage
  • 93% say Guideline gives them peace of mind

81%

say Guideline fees are a small price to pay14

California clients agree – Guideline is worth the small investment for the peace of mind they get in return.14

Our affordable and easy-to-manage solution helps you offer a compelling employee benefit.8

Calculator

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.9
Skip the state mandate stress. Get compliant in ~9 minutes today.
Sign up today

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