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Employer's Payroll Tax Obligations for the State of California (CA)

- Updated on July 16, 2020 - 08:00 PM by 123PayStubs Team

Use 123PayStubs to know your tax liabilities for the pay period and also to generate the paystubs for your employees and contractors.

You can calculate taxes and generate paystubs for both the salaried and hourly employees.

Just enter the basic details like company information, employee, and earnings information to get started. Our paystub generator all the math for you and generates paystub with accurate calculations.

Also, 123PayStubs provides information about the payroll requirements for the state.

Calculate California State Payroll Taxes and Generate Paystubs Instantly

Why 123Paystubs?

  • Accurate Calculations
  • Federal & State Withholding Calculation
  • FICA Tax Calculation
  • YTD Calculation
  • Withholding calculation based on 2020 Form W-4
  • Includes FUTA & SUTA
  • Manage Additional Earnings & Deductions
  • Make Unlimited Corrections
  • Get first Paystub for Free

What Employers should know about the California State Payroll Taxes?

123PayStubs will be suitable for those who are doing payroll on their own. 123PayStubs covers all the information required for California state withholding taxes and provides you with the exact details to keep payroll under your control.

Apart from the federal withholding, employers in California are also responsible for certain state payroll tax requirements which are listed below.

California State New Hire Reporting

Employers are required to file a new hire report with the state agency within the 20 days of hiring the new or rehired employee.

Employers in California can report new hires either online or through paper. The California Employment Development Department requires Form DE 34 to report new hires with the state agency.

The California state agency requires new hire reporting for both employees and contractors.

Filing New Hire Report DE 34 Form Online

New hire report DE 34 Form can be filed online using California state e-services for business.

Filing New Hire Report DE 34 Form Online

Mail the completed Form DE 34 to the following address:

date
EMPLOYMENT DEVELOPMENT DEPARTMENT
PO Box 997016, MIC 96
West Sacramento, CA 95799-7016

In case if the employer has hired an independent contractor, then complete new hire reporting by filing DE 542 with the EDD.

California State Minimum Wage Requirements

Employers in California have to meet the minimum wage requirements as required by the California state labor law apart from the Federal requirement.

The minimum wage requirement for the California State is $13 per hour for 2020.

There are a few cities and counties in California that have a minimum wage higher than the state minimum wage rate.

California Paystub Requirements

California state mandates every employer to provide an accurate itemized wage statement, i.e., a pay stub, to employees when paying wages.

Here are the pay stub requirements of California (CA):

  • Gross wages earned
  • Total hours worked (not required for salaried exempt employees)
  • The number of piece-rate units earned and any applicable piece rate if the employee is paid on a piece-rate basis
  • All deductions (all deductions made on written orders of the employee may be aggregated and shown as one item)
  • Net wages earned
  • The inclusive dates of the period for which the employee is paid
  • The name of the employee and the last four digits of his or her social security number or an employee identification number other than a social security number
  • The name and address of the legal entity that is the employer
  • All applicable hourly rates in effect during the pay period, and the corresponding number of hours worked at each hourly rate by the employee

Employers must also show available sick leaves on the employee’s pay stub. If an employer provides unlimited paid sick leave or unlimited paid time off, the employer may indicate "unlimited" on the pay stub.

California State Withholding Tax

  • The employer should get the Form DE 4 from their employees (Employee's Withholding Tax Exemption Certificate) to determine the taxable income of their employees apart from the federal Form W-4.
  • California State Tax Rates for supplemental Wages is 6.6%

California State Unemployment Insurance TAX (SUI)

  • California SUTA wage base limit for 2020: $7,000
  • California SUTA tax rates for 2020: 1.5 to 6.2%
  • California SUTA tax rates for new employers: 3.4%

California State Employment Training Program (ETP)

  • California State Employment training program Wage base limit for 2020: $7,000
  • California State ETP tax rates for 2020: 0.01%

California State Disability Insurance Tax (SDI)

  • California SDI wage base limit for 2020: $122,909
  • California SDI rate for 2020: 1.0%

Other California State payroll Requirements

  • California Termination Pay: If an employee is fired, pay immediately and if employee quits pay within 72 hours
  • Remit withholding for child support to
date
California State Disbursement Unit (SDU)
PO Box 419064
Rancho Cordova, CA 95741

When are California State Payroll Tax Payments due?

The tax deposits that have the employer contribution such as State Unemployment Insurance (SUI) and the Employment Training Tax (ETT) are basically due for each quarter.

Employers are required to deposit employee withholdings of State Disability Insurance (SDI) and personal income tax (PIT) as per the federal tax deposit schedule if the withheld amount is over $350.

All the California payroll taxes must be deposited electronically to the Employment Development Department (EDD). The due dates for depositing state income taxes vary based on the federal deposit schedule and state withholding amount. Please see below:

For Semi-Weekly Federal Depositors

  • If the state income tax withholding is less than $350, then the taxes are due quarterly (last day of the month following the end of the quarter).
  • If the state income tax withholding is $350 to $500, then the taxes are due monthly (15th day of the following month).
  • If the state income tax withholding is more than $500, then the taxes are due by following
Wednesday
(if the payday was Wednesday, Thursday, or Friday)
or
Friday
(if the payday was Saturday, Sunday, Monday or Tuesday)

For Monthly, Quarterly or Annual Federal Depositors

  • If the state income tax withholding is less than $350, then the taxes are due quarterly.
  • if the state income tax withholding is more than $350, then the taxes are due monthly.

For Next-Day Federal Depositors

  • If the state income tax withholding is less than $350, then the taxes are due quarterly (last day of the month following the end of the quarter).
  • If the state income tax withholding is $350 to $500, then the taxes are due monthly (15th day of the following month).
  • If the state income tax withholding is more than $500, then the taxes are due by the next business day (next working day).

Quarterly California Payroll Tax Filings

Employers are required to file DE 9 and DE 9C each quarter.

  • DE 9 to reconcile the wages reported and the taxes paid for each quarter.
  • DE 9C reports each employee’s wages for the quarter.

Employers can file DE 9 and DE 9C electronically for quicker processing. In case of paper filing mail the forms to the following address:

date
State of California
Employment Development Department
PO Box 989071
West Sacramento, CA 95798-9071

Due date for California Forms DE 9 and DE 9C

Employers are required to file DE 9 and DE 9C each quarter

  • For Quarter 1, the forms are due by April 30
  • For Quarter 2, the forms are due by July 31
  • For Quarter 3, the forms are due by November 02
  • For Quarter 4, the forms are due by January 31

If the deadline falls on a weekend or any legal holiday, then the forms are due by the next business day.

Annual California Payroll Tax Filings

TThe state of California does not require the annual filing of Form W-2 with the state. But it requires state reporting of Form 1099-MISC.

Employers can either choose to file Form 1099-MISC electronically or they can mail the form to the following mailing address:

date
Franchise Tax Board,
PO BOX 942840, Sacramento,
CA 94240-6090.

123PayStubs is more than a paystub generator

No matter which part of California your business operates in, our California paystub generator will let you create pay stubs for your employees and contractors with accurate tax calculations including all cities like Los Angeles, San Francisco, and San Diego. You only have to provide a few basic information such as company, employee and salary details and our pay stub generator will calculate all the applicable taxes swiftly based on the information provided. It will take less than 2 minutes to generate a pay stub.

Employees and contractors in California can use the pay stubs as proof of income.