Toku: California CalSavers Exemption for EOR Employees

Overview

If you have employees in California employed through Toku's EOR services, you do not need to register those employees with CalSavers. Toku sponsors a qualified 401(k) retirement plan through Slavic401k that meets the CalSavers exemption requirements under California law.

What is CalSavers?

CalSavers is California's state-sponsored retirement savings program created to help workers who don't have access to a workplace retirement plan. Under California law, employers with one or more California-based employees are required to either:

Register with CalSavers and facilitate payroll deductions, OR
Offer a qualified employer-sponsored retirement plan Important Deadline: Employers with 1-4 employees were required to register or claim an exemption by December 31, 2025. Employers with 5+ employees should already be registered or exempt.

Why Toku EOR Employees Are Exempt

Toku sponsors the Slavic401k retirement plan for all U.S. EOR employees. Because this is a qualified employer-sponsored retirement plan, it satisfies the CalSavers exemption criteria under California Government Code Section 100032.

Qualifying Plan Details

Feature	Details
Plan Provider	Slavic401k
Plan Type	401(k) Retirement Savings Plan
Automatic Enrollment	Yes - 3% default contribution after 2 months
Auto-Escalation	1% annual increase up to 10%
Contribution Options	Pre-tax (Traditional) and Roth
Investment Options	40+ funds available
Employee Control	Employees can opt out, change contribution rates, or self-direct investments at any time

What This Means for EOR Clients

Toku Handles Compliance

For employees employed through Toku's EOR services in California:

✅ No CalSavers registration required for these employees
✅ No payroll deduction facilitation needed with the state program
✅ Retirement benefits included as part of Toku's standard EOR offering
✅ Toku manages all 401(k) administration, including enrollment, contributions, and reporting

Your Responsibilities

Direct hires (non-EOR employees): If you have California employees on your own payroll who are not employed through Toku, you must still comply with CalSavers requirements for those employees
Mixed workforce: CalSavers compliance is evaluated per employer, so your direct-hire obligations are separate from Toku's

Employee Access to the 401(k) Plan

Toku EOR employees can manage their retirement savings through the Slavic401k portal:

Portal: www.slavic401k.com

Key Actions:

Enroll or opt out of automatic enrollment
Change contribution rates
Select investment options
View account balances and statements Support: Slavic401k Customer Support
📞 (800) 356-3009
Hours: Monday - Friday, 8:00 AM - 8:00 PM EST

Frequently Asked Questions

Do I need to file an exemption with CalSavers for my Toku employees?

No. Because Toku is the employer of record, Toku maintains the exemption status. You do not need to take any action with CalSavers for employees under Toku's EOR arrangement.

What if I receive a CalSavers notice?

CalSavers notices are sent based on EDD employment data. If you receive a notice specifically about employees employed through Toku, please contact your Customer Success Manager. We can help clarify that those employees are covered under Toku's qualified plan.

Are there any fees for the 401(k) plan?

Toku covers the employer portion of plan administration fees as part of standard EOR services. Employees may have minimal fund-level expense ratios, which are disclosed in the plan documents.

Can employees opt out?

Yes. Employees can opt out of automatic enrollment at any time via the Slavic401k portal or by calling customer support. However, we encourage participation to take advantage of tax-advantaged retirement savings.

Additional Resources

Need Help?

If you have questions about CalSavers compliance or Toku's retirement benefits:

📧 [email protected]

Last Updated: January 2026

California CalSavers Exemption for EOR Employees