If you are a nanny employer in the state of California, there is a big change coming that you need to be aware of. Starting December 31, 2025, all household employers in California must either offer their employees a qualified retirement plan or register with CalSavers. If you live in California and employ a nanny, this requirement applies to you.

So, what happens now? Here’s everything you need to know about CalSavers, how it works, and how to prepare your family and your nanny before the deadline.

1) What is CalSavers?

CalSavers is California’s state-run retirement savings program. It was created to give workers who don’t have access to an employer-sponsored retirement plan (like many nannies and household staff) a simple and secure way to save for the future.

Here’s how it works:

• CalSavers is funded through employee payroll deductions, usually starting at 5% of wages.
• Contributions go into an Individual Retirement Account (IRA), which your nanny owns and controls.
• The account is portable, meaning if your nanny changes jobs, their savings go with them.
• You, as the employer, do not need to contribute. Your role is simply to provide access and process deductions.

2) Why CalSavers Matters for Families

Many families don’t realize that hiring a nanny makes them an official household employer under California law. That means compliance with state requirements is not optional. But that doesn’t mean it has to be complicated, either.

CalSavers ensures your nanny has access to a structured savings program, but it also helps your family in important ways:

• Legal compliance: Avoid penalties and fines by registering on time.
• Professionalism: Offering retirement access shows you value your nanny as a skilled professional.
• Trust and retention: Benefits like retirement savings make your nanny feel supported, increasing job satisfaction and longevity.

3) Key Dates and Deadlines

• December 31, 2025: This is the final deadline for all household employers in California to comply with CalSavers or provide an alternative qualified plan.
• Families can register with CalSavers at any point before this deadline. Early registration gives you and your nanny time to adjust, so consider adding this to your to-do list ASAP.

4) What Families Need to Do

1. Confirm you are a household employer. If you pay your nanny more than $750 in a quarter, you are considered an employer in California.
2. Choose your path: Offer your own qualified retirement plan (such as a SEP-IRA, SIMPLE IRA, or 401(k)), or register with CalSavers to facilitate access for your nanny.
3. Register by the deadline. Visit calsavers.com to register your household employer account.
4. Communicate this change with your nanny. Let your nanny know what CalSavers is, that enrollment is automatic unless they opt out, and that contributions come from their paycheck.
5. Set up payroll deductions. Once registered, you’ll handle payroll contributions just like taxes or other withholdings.

5) Frequently Asked Questions

a) Do families have to contribute to their nanny’s CalSavers account?

No. Employer contributions are not required. Your responsibility is to facilitate enrollment and payroll deductions.

b) Can my nanny opt out?

Yes. While enrollment is automatic, your nanny has the option to opt out or change contribution levels at any time.

c) What if I already provide a retirement plan?

If you already offer a qualified plan, you do not need to register for CalSavers.

d) What happens if I don’t comply?

Employers who fail to register by the deadline may face state penalties.

6) Benefits for Nannies

CalSavers isn’t just about compliance. It’s also about helping nannies build financial stability. With consistent payroll deductions, your nanny can:

• Save for retirement without needing to set up their own plan.
• Grow their savings with investment options.
• Take their account with them if they move to another family or career.

This reinforces the professionalism of the nanny role and aligns with larger efforts to provide caregivers with long-term security.

Taking steps now ensures you’re prepared and compliant, demonstrating your commitment to your nanny’s well-being. Supporting your nanny’s financial future isn’t just about following the law. It’s about showing genuine respect for the invaluable role they play in your family’s life.

At Westside Nannies, we’re here to guide you through these changes and answer any questions along the way. Together, we can make sure your nanny feels valued, secure, and celebrated.