How can Xiggit automate your CalSavers Program compliance?
While the CalSavers program is free to Employers, management of the program is very manual for enrollment and contribution management and might represent hidden costs in both time and money.
CalSavers processing in a nutshell
Let's walk through what you (or your designate) will need to do in order to manage your employees and their contributions through the CalSavers platform.
Step 1: Registration
Registration through CalSavers is simple enough. You just need to head to the CalSavers website with your EIN and Program Access Code. Once you've registered, you just need to add your contact information, set a password, and you're done! Simple enough.
Step 2: Enrolling your Employees
I've got good news and I've got bad news. The good news? CalSavers has 2 methods for enrolling your Employees. The bad news? Both are manual. If you have a small number of employees, you can add them directly via the CalSavers website. If you have a lot of employees, you can download an Excel template and do a batch upload. You'll need to collect the following information for either process:
- Social Security Number or Tax ID (yes, CalSavers identifies your employees by their Social Security Number)
- Name (first, middle initial, last)
- Date of birth
- Physical address (no PO Boxes)
- Primary phone number
- Email address, if available
Once you've added your employees, CalSavers will send information directly to your employees. When you hire new employees, you need to remember to add them to CalSavers. When an employee leaves, you need to remember to remove them from CalSavers. Congratulations! You now have another system to manage during your HR process 😡.
Step 3: Managing payroll and contributions
Given employee registration was manual, you might expect managing payroll contributions to be manual as well - and you'd be right! Managing payroll and contributions through the CalSavers platform is actually a 4-step process:
- Log in to the CalSavers portal to view or download your employees' current contribution percentages
- Update your employee contribution percentages in your payroll system to calculate their CalSavers contribution amounts
- Return to the CalSavers portal to submit your CalSavers contributions for the given payroll
- Submit the total contributions for payment from the CalSavers portal
You are reading it correctly - you will need to manage the data sync between the CalSavers portal and your Payroll system. There is the ability to perform this via file exchange, but it's still highly prone to errors!
How much is your time worth?
Granted, enrolling employees is a one-time activity. The biggest trick will be to remember to add and remove employees as your team changes. The larger time suck will be managing contributions every pay period. Let's imagine this takes 5 minutes per employee - if you have 10 employees, you've added an additional hour of work every pay period just to manage your CalSavers program. If you outsource your payroll, you're going to wind up paying your vendor for that time. There has to be a better way!
How can Xiggit automate your CalSavers compliance?
We have designed Xiggit to completely automate your CalSavers compliance. Once you enroll in the platform, we handle everything - you can be involved as much or as little as you like.
Step 1: Enrollment
Enrollment with Xiggit takes 15 minutes and has 3 steps:
- Optionally add a payroll administrator. If you don't have the information your need to complete the enrollment process, no problem! You can invite your payroll administrator to complete the portions that you skip.
- Link your payroll provider through our trusted partner, Finch. By linking your payroll provider to the Xiggit Platform, we can automatically manage your employee enrollment and payroll contributions.
- Link your bank account through our trusted partner, Plaid. With your linked bank account, Xiggit can automatically process your employees' payroll contributions.
As you will see, by linking your existing accounts to Xiggit, we can easily automate your CalSavers compliance, saving you countless hours per pay period!
Step 2: Register your Employees
Now that you've linked your Payroll Provider to Xiggit, we will automatically create Xiggit accounts for your employees based on the data we receive from your Payroll Provider. Once their accounts are created, we will start a communications campaign to help educate your employees on the value of the program. Your employees can enroll and manage their contribution percentages or opt-out of the program directly in our app. We will also automatically add new employees and disconnect employees that leave. In most cases, you won't need to do a thing during this process!
Step 3: Managing payroll and contributions
Xiggit will automatically manage your employees' payroll contributions and apply those to their accounts. When your employees enroll or opt out of the program, we will automatically update your Payroll Provider. When you process your payroll, Xiggit will be notified of the individual Xiggit contributions directly from your Payroll Provider. We will automatically apply those contributions to your employee's accounts and transfer the lump sum from your linked bank account. We will automatically manage communications around the entire process. All you have to do is sit back and watch the magic happen!
How much can Xiggit save you?
With just 15 minutes you can enroll your company and your employees in a fully-automated CalSavers compliant benefits program 🎉. To start, for a small monthly fee per employee, we are offering a payroll-deduction Roth IRA and Savings Account and our Boosts financial wellness game. With the addition of a SIMPLE IRA, we can offer higher contribution rates and employer matching, similar to what you get with a 401k, without the additional costs. We will start to roll out individualized and group health insurance plans in the next few months, along with a few other offerings that your employees will find incredibly valuable.
Ready to learn more?
We'd be happy to chat with you! One of our compliance experts is available to give you a CalSavers readiness review. We'd love to show you how Xiggit can save you time and money when compared to other offerings.