Small Business Week
There’s nothing small about small business.
According to the U.S. Small Business Administration, approximately half of Americans either own or work for a small business, and they create about two out of every three new jobs in the U.S. each year.
This year’s National Small Business Week is observed from April 29 to May 5 to recognize the big contributions of America’s entrepreneurs and small business owners. The Employment Development Department (EDD) recognizes the great impact of small businesses on California’s economy and local communities, and celebrates their contributions to the State of California.
Here are some of the highlights illustrating how valuable small businesses are in our state:
- California is home to approximately 3.8 million small businesses that employ more than 6.8 million Californians according to the U.S. Small Business Administration, where small businesses are defined as firms employing fewer than 500 employees.
- There are roughly 1.2 million businesses that employ less than 10 workers in California according to the most recent data collected in 2017 by the EDD Labor Market Information Division. In addition, the number of small businesses in California grew by 61,880 establishments, a gain of 5 percent over the past five years.
- In 2017, 175,100 new establishments opened in California and these establishments generated 561,000 jobs for the state’s economy. More than 89 percent (approximately 157,000) of the new establishments were made up of single-unit establishments and they generated 453,000 jobs that year.
EDD Programs and Services
The EDD offers employers assistance and a variety of tools to easily manage tax accounts, meet legal obligations, and build business operations.
e-Services for Business
The EDD has made it fast, easy, and secure for employers to register for an employer payroll tax account number, manage payroll tax accounts, file returns, and make payments online with e-Services for Business. Employers are required by law to electronically submit all employment tax returns, wage reports, and payroll tax deposits to the EDD. Enroll in e-Services for Business today to meet this requirement. For more information, visit the E-file and E-pay Mandate for Employers page.
Payroll Tax Seminars
The EDD offers payroll tax seminars, either classroom-style or online, at no cost! The classroom seminars are offered in a variety of locations throughout California and online courses allow you to learn at your own pace. Seminars are customized to benefit everyone: established businesses, those just getting started, individuals anticipating going into business, and payroll agents. Visit the Payroll Tax Seminars page to see the many seminar options available.
Recruit new employees with CalJOBS—California’s online labor exchange system provided by the EDD. Post job openings, browse résumés, and find qualified candidates using the 24-hour virtual recruiter. For a summary of services available on CalJOBS, visit the CalJOBS Information page.
Work Opportunity Tax Credit (WOTC)
Did you know there’s a tax credit that promotes the hiring of individuals who qualify as a member of a target group? The WOTC program provides a federal tax credit incentive of up to $9,600 for employers to hire individuals from nine different groups determined to need additional support to enter the workforce. To learn more about this program and other tax credits and incentives, visit the Tax Credits and Incentives page.
Labor Market Information (LMI) Online
LMI Online is a source of high quality and up-to-date information about California’s labor market and economy. LMI Online gives employers access to data to make informed decisions on a variety of workforce and economic areas that include, but are not limited to employment, unemployment, industries, and occupations.
State Information Data Exchange System (SIDES)
What happens when a former employee files for Unemployment Insurance (UI) benefits? If you are the last employer, you are automatically sent the EDD’s Notice of Unemployment Insurance Claim Filed, DE 1101CZ, either by mail or electronically through SIDES. SIDES provides employers with a secure and timely way to electronically receive and respond to this notice. For more information on how to subscribe to SIDES, watch our SIDES for Unemployment Insurance video. Responding timely to EDD’s notices is your opportunity to provide separation information about an employee who quit, was discharged, or laid off. This information helps the EDD accurately charge your UI account and prevent improper payments. For more helpful ways to control UI costs, watch our How to Protect Your Business from Higher UI Taxes video.
State Disability Insurance (SDI)
By law, employers are responsible for providing information to employees about the SDI program. The EDD can help you inform your employees by providing pamphlets and posters at no cost! Learn more by visiting the Employer Requirements page.
Paid Family Leave
There may be times in the life of a working person when there is a need to care for a loved one. Whether it’s a working parent bonding with a new child or an employee caring for a seriously ill family member. As an employer, be better informed to help your employees in times like these. Visit California Paid Family Leave for more information.
Did you know that employers are legally required to respond within two days to the EDD notice that is issued when an employee files a Disability Insurance or Paid Family Leave claim? SDI Online is the best method to meet the required response time because employers can complete the notice electronically for DI claims.
Disability Insurance Elective Coverage (DIEC)
For employers or self-employed individuals not required to contribute to SDI, the EDD offers an optional DIEC program that can protect you against partial loss of profits and is funded through quarterly premiums. Individuals covered by DIEC are also covered for both DI and PFL. For more information, view the Disability Insurance Elective Coverage Program fact sheet.
- America’s Job Center of CaliforniaSM (AJCC)
Visit a local AJCC for assistance with finding qualified workers using focused recruitment campaigns for your business with specialized needs, scheduling services to screen and interview applicants, help with identifying resources to meet your training needs, and more.
- California Employer Advisory Council (CEAC)
The CEAC is an independent, non-profit organization that works with the EDD to improve the quality of employment services in California. The EDD partners with the CEAC to offer informational seminars to keep employers current on employment-related laws and regulations.
- U.S. Small Business Administration
Created to aid, counsel, assist, and protect the interests of small business concerns, to preserve free competitive enterprise, and to maintain and strengthen the overall economy of our nation.
- Small Business California
A proactive, non-partisan business advocacy organization responsive to the needs of California small business owners.
- Small Business Majority
National small business advocacy organization, founded and run by small business owners to focus on solving the biggest problems facing small businesses today.
- California Department of Tax and Fee Administration
Established to serve the people of California through fair, effective, and efficient tax administration.
- Internal Revenue Service
The U.S. government agency responsible for tax collection and tax law enforcement.