Withholding
Withholding requirements
Employees need to fill out Form DE4.
Supplemental rate
Supplemental rates are to withheld at a flat 6.6% unless bonus or stock option. Then, they are withheld at 10.23%.
State Unemployment Insurance (SUI)
Wage base
$7,000
Contributions
New employers pay a SUTA Rate of 3.4%. Experienced employers can find their rate online.
More information
New employers pay 3.4%: This is the correct SUI tax rate for new employers in California. New businesses typically pay this rate for the first two to three years before receiving their own experience rating.
Experienced employers can find their rate online: This is also correct. After the initial new employer period, the EDD assigns each employer a unique SUI rate based on their “experience rating”. This rate is calculated based on factors like:
- The amount of unemployment benefits charged to the employer’s account.
- The amount of taxable wages paid.
Labor
Minimum wage
$16.50
Termination Pay
- Fired employees: When an employee is discharged or laid off, all earned and unpaid wages, including accrued vacation, are due immediately at the time of termination.
- Quitting employees:
- With 72 hours’ notice: If an employee gives at least 72 hours of prior notice, their final paycheck is due at the time of quitting.
- Without 72 hours’ notice: If an employee quits with less than 72 hours of notice, their final paycheck must be paid within 72 hours.
More information
- Daily overtime: One and one-half times the regular rate of pay for all hours worked over eight and up to 12 in any workday.
- Double time: Double the regular rate of pay for all hours worked over 12 in any workday.
- Weekly overtime: One and one-half times the regular rate of pay for all hours worked over 40 in a workweek.
- Seventh consecutive day:
- Time and a half: For the first eight hours worked on the seventh consecutive workday of a workweek.
- Double time: For all hours worked over eight on the seventh consecutive workday of a workweek
New Hire Filing
Reporting deadline
Employers must report hiring, rehiring, and employees returning to work within 20 days
Reporting online
Reporting by mail
Employment Development Department
P.O. Box 997016, MIC 96
Sacramento, CA 95799-7016
New hire reporting form
Report of New Employee(s) (DE 34)
Child Support
Online payments
More information
CA SDU
P.O. Box 989067
West Sacramento, CA 95798-9067
Other
New employer registration
Local taxes
N/A
Reciprocal states
N/A
Disability insurance
SDI withholding rate is 1.2%. The rate includes Disability Insurance (DI) and Paid Family Leave (PFL).
The DI/PFL maximum weekly benefit amount is $1,681.
Last Updated
09/10/2025
States
The information provided here should not be considered legal or accounting advice nor should it substitute for legal, accounting, and other professional advice. If you require legal or accounting advice, you should always consult your licensed attorney, accountant, or other professional to discuss the facts of your particular situation.
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