California

Withholding

Withholding requirements

Employees need to fill out Form DE4. http://www.edd.ca.gov/pdf_pub_ctr/de4.pdf
There are two different methods for withholding: calculation or wage bracket.

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

Contribuitions

New employers pay a SUTA Rate of 3.4%. Experienced employers can find their rate online.
https://eddservices.edd.ca.gov/tap/open/rateinquiry/_/#1

More information

Labor

Minimum wage

$12.00 for employers with 26 or more employees and $11.00 for employers with 25 or fewer employees. Employers should check their city for different minimum wage laws.

Termination Pay

If the employee is fired, the employer must pay the employee’s termination pay immediately. If the employee quits, the employer must pay the final payroll within 72 hours, or immediately if the employee gives 72 hours notice.

More information

Employers must pay hourly employees one and one-half times their regular hourly rate for every hour worked over 40 in a week; for every hour worked over eight in a single workday; for the first eight hours worked on the seventh consecutive workday of a workweek; and double the regular rate for each hour over 12 in a workday, and, in most industries, for every hour over the seventh consecutive workday.

New Hire Filing

Reporting deadline

Employers must report hiring, rehiring, and employees returning to work within 20 days

Reporting by mail

Employment Development Department
P.O. Box 997016, MIC 96
Sacramento, CA 95799-7016

New hire reporting form

Form W-4

Child Support

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 1.0%. The rate includes Disability Insurance (DI) and Paid Family Leave (PFL).
The SDI taxable wage limit is $118,371 per employee, per year. The DI/PFL maximum weekly benefit amount is $1,183.71.

Helpful links

Employment Development Department: http://www.edd.ca.gov/
Department of Industrial Relations: http://www.dir.ca.gov/
Department of Child Support Services: http://www.childsup.ca.gov/

Last Updated

05/01/2019

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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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