For business owners
Small business employee benefits in California
Cover what California requires, then add the benefits that keep good people and protect the business if something happens to you or a partner.
What California requires
Workers’ compensation insurance
Required once you have even one employee.
Paid sick leave
California sets a minimum for most employees. Check the current amount with the Labor Commissioner.
SDI and Paid Family Leave
Withheld from employee pay and reported through payroll.
A retirement plan, or CalSavers
Employers with 1 or more employees and no qualified plan must register for CalSavers. Workers are enrolled at 5% by default, rising 1% a year to 8%.
Health coverage at 50+ full-time equivalents
Under the federal ACA, larger employers must offer coverage or may owe a penalty.
What we help you add
Group life insurance
A low-cost benefit employees value. Employer-paid group term coverage up to $50,000 is generally tax-free to the employee.
Key person insurance
The business insures an owner or top employee, so it has cash to recover if that person dies.
Buy-sell funding
Life insurance pays for a partner’s share, so the family gets paid and the business stays with the surviving owners.
Executive bonus plans
The business pays a key employee’s policy premium as a bonus. A simple way to reward and keep top people.
Owner retirement plans
Options for owners who want to save more than a standard plan allows, including life insurance based strategies.
A decision most owners face
CalSavers or your own plan?
| CalSavers | Your own plan (e.g. 401(k)) | |
|---|---|---|
| Cost to the employer | No employer fees | Setup and admin fees |
| Employer contributions | Not allowed | Allowed: matching and profit sharing |
| Account type | Roth IRA by default | Pre-tax and Roth options |
| How much employees can save | IRA limit: $7,500 in 2026 ($8,600 at 50+) | Higher plan limits |
| Best for | Meeting the mandate simply | Owners who want to save more and attract talent |
Source: calsavers.com. Confirm plan details with your plan provider and tax advisor.
For executives and high earners
Advanced life insurance strategies
Some owners and executives use life insurance as part of their own retirement and estate plan. Two approaches we often discuss:
Leveraged indexed universal life
A lender adds money to your contributions for a set period, so more goes into the policy early. It can build more cash value, but it adds loan terms and interest-rate risk you need to understand.
Premium financing
For people with significant net worth who need a large policy, often for estate planning. A bank loan pays the premiums, and you keep your capital working elsewhere. It needs collateral and careful review.
These strategies aren’t right for everyone. We’ll show the guaranteed values, loan terms and what happens if returns are lower than illustrated.
Business owner FAQ
Do I have to offer a retirement plan in California?+
If you have 1 or more employees and don’t offer a qualified plan, you must register for CalSavers or set up your own plan.
What is key person insurance?+
A life insurance policy the business owns on an owner or important employee. If that person dies, the business gets the payout to cover lost revenue, hire a replacement or pay debts.
How does life insurance fund a buy-sell agreement?+
Each owner, or the business, holds a policy on the other owners. If one dies, the payout buys their share from their family at the price set in the agreement. Your attorney drafts the agreement; we help fund it.
I’m self-employed with no employees. Can you help?+
Yes. We help self-employed people with life insurance with living benefits, health coverage and retirement savings.
Review your business benefits
We’ll check what’s required, what you have and what’s worth adding.
[Licensing and disclosure wording: to be added at client review]