California Payroll Compliance: Minimum Wage Increase & Retirement Plan Requirements 2025
California Payroll Compliance
Running a business in California means staying ahead of constant regulatory changes. In 2025, two major updates impacted nearly every employer: the California minimum wage increase and the mandatory retirement plan requirement for employers with one or more employees.
At A&A Employer Services, we help small businesses navigate California payroll compliance with confidence, accuracy, and personalized support.
California Minimum Wage Increase: What Employers Need to Know
California’s minimum wage increase affects businesses of all sizes. Employers must ensure that:
- All hourly employees are paid at least the current California minimum wage
- Salaried employees still meet the required salary thresholds to maintain exempt status
- Payroll calculations comply with California wage and hour laws
Failure to comply can result in penalties, back pay, and costly audits. Accurate payroll processing is essential to protect your business and maintain compliance.
As a trusted provider of California payroll services, A&A Employer Services ensures your payroll is always aligned with the latest state requirements - so you can focus on running your business, not tracking legislation.
CalSavers Retirement Program: New Requirements for California Employers
California law now requires employers with 1 or more employees to offer access to a retirement savings option.
If your business does not currently offer a qualified retirement plan (such as a 401(k), SIMPLE IRA, or SEP IRA), you must register for the CalSavers retirement program.
CalSavers Employer Requirements Include:
- Applies to all California employers, including small businesses
- Employers must facilitate payroll deductions for CalSavers
- Employer contributions are not required
- Employees may opt out, but employers must still offer the program
- Penalties may apply for failure to register or comply
These retirement plan requirements for California employers are now a key part of overall payroll compliance in California.
What California Employers Should Do Now
To remain compliant, employers should:
- Review payroll systems to reflect the California minimum wage increase
- Determine whether an existing retirement plan meets state requirements
- Register for CalSavers if no qualified plan is in place
- Ensure payroll deductions and reporting are set up correctly
Managing these requirements alone can be time-consuming, especially for small businesses without dedicated HR staff.
Payroll and Retirement Compliance Made Simple With A&A Employer Services
At A&A Employer Services, we specialize in small business payroll in California. Our team provides hands-on support to help employers stay compliant with wage laws and retirement plan requirements.
We offer:
- Reliable California payroll and HR services
- Assistance with CalSavers payroll deductions and reporting
- Ongoing compliance support as laws change
- Personalized service from a team that knows your business
We are more than a payroll processor — we are a trusted payroll partner for California employers.
Stay Compliant With Confidence
Whether you need help adjusting to the California minimum wage increase, managing CalSavers employer requirements, or streamlining your payroll process, A&A Employer Services is here to help.
Contact us today to ensure your payroll and retirement compliance are handled accurately and efficiently.
A&A Employer Services
Your trusted partner for California payroll services and employer compliance
Author: Bethany Myers, Content Social Media Queen
