What your ministry needs to know about CalSavers

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Charlie Cutler

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Our team has been receiving a lot of calls from ministries about things that they’ve been told about CalSavers Retirement Savings Program and the upcoming deadline to enroll by June 30, 2022. 

What is CalSavers?

CalSavers was established by the State of California to provide employees a way to save for retirement through automatic payroll deduction. Employers are generally required by law to register for CalSavers if they do not sponsor a retirement plan and have five (5) or more employees.

Under state law, religious organizations are exempt from this program and the registration requirements. Therefore, no action is required regarding CalSavers. 

That’s it, simple.

So where’s the confusion coming from? Most of the bad information about CalSavers is coming from companies who don’t specialize in faith-based organizations. 

Payroll Companies

CalSavers administration and implementation is done by payroll providers. Many of our ministries are being pushed by their payroll providers to register for CalSavers. Oy Vey! Other payroll providers are making ministries register for exemption (another unnecessary task on your to do list).  

This is one of the reasons we recommend working with a payroll company who specializes in ministry. Ministry Works, does payroll exclusively for Christian Ministries, give them a call!

HR Services

Many of the online services out there are branding themselves as knowledgeable in HR issues for Christian employers. However, most of these are secular services with ‘churchy branding’. 

The reality is that there are 31,000,000 employers in the United States and around 25,000 Christian Not for Profit Employers in California. The laws apply to you differently than anyone else. 

So, we recommend our friends at Church HR Network. They are the most complete HR solution exclusively for ministries. Let them know you’re with ChurchWest and you’ll receive 25% off their services (you’re welcome). 

What are the other retirement options for our employees?

If your ministry is thinking about enrolling in CalSavers just to offer a benefit plan for your staff, please don’t.  Religious organizations have much better options.  

Check out GuideStone or Clergy Planning Group and they’ll provide you with some ministry-specific options that are more beneficial to your ministry and your staff than anything CalSavers can offer.

ChurchWest does not receive compensation from the above HR Services, Retirement Planners, or Payroll Companies. We are just big fans of what they do and want to help!

Still need help?

No other insurance agency in California is as deeply invested in working with Christian ministries as ChurchWest.  Not only do you get that from our Property & Liability programs, but our Employee Benefits Department knows the ins and out of requirements like these (we have your back).

Not working with us on health insurance? Our friendly and trilingual (English, Spanish, and Korean) team is the best! We have access to the best insurance products and handle questions from your employees throughout the year. 

Reach out by calling 800.843.6054 or email us at benefits@churchwest.com

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Charlie Cutler

Charlie Cutler is the President of ChurchWest Insurance Services, a California-based agency that specializes in providing insurance solutions to churches and related ministries. Charlie has been with ChurchWest for over 20 years and has extensive experience in the insurance industry, with a particular focus on the unique risks and challenges facing Christian organizations. Charlie is a sought-after speaker and has presented at numerous conferences and seminars on insurance and risk management topics.

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