California Payroll Services
California Payroll Tax And Labor Laws
Get your California State Tax ID Number
Click Here to Obtain State Tax or Unemployment Tax ID
Note: California is a state that accepts “joint applications.” SIT and SUI requirements are met with a single application for a single ID number. This is sometimes known as a “California employer payroll tax account number”
Were you aware that the Franchise Tax Board is required by law to deduct state tax from payments made to non-resident independent contractors? That California is one of only five states that require workers to pay for short-term disability insurance?
California Wage and Hour Laws
California’s minimum wage law requires firms with 26 or more employees to pay at least $14.00 per hour, while employers with 25 or less employees must pay at least $13.00 per hour.
Except for those specifically exempted by wage order, all employees are covered; those exempted include:
- personnel in executive, administrative, or professional positions;
- salespeople who work outside the company; and
- The state licenses or certifies lawyers, doctors, dentists, optometrists, architects, engineers, teachers, accountants, and other professionals.
California Payroll for Employers
California Unemployment:
Taxable Wage Base ($000s): 7,000
New Employer Rate (% Taxable Wages) 3.4
Employee Tax Rate (% Taxable Wages) None
California Income Tax Withholding
Employers must withhold state personal income tax (PIT) from their employee’s wages and remit the amounts withheld to the Employment Development Department, according to California law.
Individuals who work for themselves (independent contractors) are not employees and are not subject to withholding in most cases.
Although California has no particular reciprocal taxation agreements with other states, citizens of Arizona, Guam, Indiana, Oregon, and Virginia are allowed to deduct taxes paid to their home states from their California income tax due.
California Benefits
California Voting Rights:
Employer Right to Schedule Voting Hours Yes
Pay Deduction for Voting Time Leave Time Off with Pay Limited to 2 Hours
Employers in California are required to provide employees with enough time off to vote. The quantity of leave time that must be granted is not specified in the law. Employers can grant time off at the beginning or conclusion of a typical work shift, whichever gives employees the greatest time for voting and the least time away from work unless they have a separate agreement with employees.
How do I report new hires to the state?
- Report new hires online
OR Mail/Fax Form DE 34 to:
- Employment Development Department
P.O. Box 997016, MIC 96
Sacramento, CA 95799-7016 - Fax: 916-319-4400
- Phone: 916-657-0529
How do I submit Child Support payments?
- California Child Support Services
CA SDU
PO BOX 989067
West Sacramento, CA 95798-9067 - Phone: 1-866-901-3212
- Email: [email protected]
- Child Support Payment Information
California State Tax Resources
AccuServe Payroll disavows any responsibility or warranty for the information on these state payroll pages. The material provided is for informational purposes only and does not constitute tax or legal advice. Verify this information with professional tax, legal, or other experts to see if and how it applies to your specific circumstances.
This website provides articles that are intended to be informative and educational. AccuServe Payroll is not responsible for the accuracy of any of the information provided on these pages. AccuServe Payroll does not necessarily agree with or support any of the views stated in the materials. The information contained in these documents should not be construed as legal or accounting advice, nor should it be used to replace legal, accounting, or other professional advice where the facts and circumstances justify it. If you need legal or accounting advice or other professional assistance, to address your specific facts, circumstances, and business needs, you should always consult a licensed attorney, accountant, or other tax specialists.
