Running a successful dental practice means balancing excellent patient care with the responsibilities of managing a business. One important requirement that often flies under the radar is the CalSavers Retirement Savings Program, a state-mandated plan that affects many California employers, including dental practices.
What Is CalSavers?
CalSavers is a retirement savings program created by the State of California to expand access to retirement plans. It is designed for employees whose employers do not currently sponsor a qualified retirement plan, such as a 401(k), 403(b), SEP IRA, or SIMPLE IRA. Through the program, eligible employees are automatically enrolled in an Individual Retirement Account (IRA), with contributions made directly through payroll deductions.
Who Needs to Participate?
Any California employer with at least one W-2 employee (excluding the practice owner) and no existing retirement plan is required to either:
- Register for CalSavers, or
- Certify an exemption if a qualified retirement plan is already in place.
This means that even small dental offices with just one employee must take action.
Employer Responsibilities
If your practice does not already offer a retirement plan, you’ll need to:
- Register your practice at www.calsavers.com.
- Upload eligible employee information to the portal.
- Facilitate payroll deductions for employees who participate.
If your practice already sponsors a retirement plan, you still must log in and certify your exemption.
Penalties for Non-Compliance
Failure to comply can result in penalties of up to $750 per eligible employee. For practices with multiple staff members, these fines can add up quickly, making timely compliance essential.
Why This Matters for Dental Practices
Many dental practice owners juggle clinical care with the complexities of running a business. While retirement planning may not be top of mind, non-compliance with CalSavers could expose your practice to unnecessary costs and administrative headaches. Taking proactive steps now ensures you avoid penalties while also supporting your employees’ financial well-being.
Next Steps
If you’re unsure whether your practice is subject to CalSavers, now is the time to review your situation. Check whether you already have a qualifying retirement plan in place and, if not, register promptly.
At Dental CPA, we specialize in guiding dental professionals through compliance requirements like these. If you’d like assistance determining your obligations or handling the registration and exemption process, our team is here to help.