CalSavers

[Mika_N]

I need a benefit option for CalSavers deduction.

* Payroll Deduction Roth IRA

* % amount calculated from gross income

* Not reportable on W2's

* No employer matching

I am going to have to switch to another vendor for payroll if an easy way to do this isn't implemented.

[RobynR]

Hey @Mika_N 

Thanks for taking the time to leave your feature request.

You can sign up for CalSavers directly through the state to offer this free benefit to your employees. If employees opt into the CalSavers program, you can set up a benefit deduction in your team’s payroll profile to withhold contribution amounts from their paychecks.

To do so:

1. Visit the Payroll Team tab in the Payroll section of your online Square Dashboard and select an employee’s name.
2. Click Add Benefit > Create New.
3. Enter a plan name as you’d like it to appear in your employee’s pay stubs. For example, CalSavers or 401(k). Note: The benefit name can’t be edited retroactively.
4. Click Select and choose Roth 401k Retirement Plan.
5. Specify the details for your employee’s deductions, such as the calculation method and any deductions to date. Note: Leave the Company Contributions section blank, as only your employees will make contributions to their CalSavers retirement program.
6. Click Save.

If creating a manual deduction, you must submit each paycheck’s contribution amount to CalSavers within 7 days of taking the deduction out of the participating employee’s paycheck. Square Payroll does not complete this payment on behalf of employees or employers.

Read more about CalSavers.

Let me know if you have any other questions.

[Mika_N]

Would choosing Roth 401k option cause it appear on the employee W2? My understanding is that Calsavers isn't a Roth 401K but a Roth IRA and nothing should be added to the W2. I understand choosing Roth 401k would calculate the contribution correctly but would it mess up the W2's at year end.

[Marta]

I posted about this back in July I believe and I just submitted for a feature request to have Roth IRA added as a benefit as well. I wouldn't want to select the wrong benefit type even if the contributions were correct. And after talking to my accountant and square payroll at length, neither suggested using a 401k as a workaround. We just need the Roth IRA as a proper benefit is what it seems. 

[Donut_King]

Has there been any further development of a Calsavers program to better integrate into square? I'm just signing up and it seems incredibly cumbersome. I don't even have access to my employees SSN in order to register them. The calsavers website suggests that there is some integration to facilitate extracting employee data, but it requires square assigning a representative to my account.