In California, there are four state payroll taxes. Two are employer paid and two are withheld from employee wages.
Employer paid:
- Unemployment Insurance (UI)
- Employment Training Tax (ETT)
Withheld from employee wages:
- State Disability Insurance (SDI)
- Personal Income Tax (PIT)
Most employers are Tax-Rated Employers and pay into the UI fund. There are some unique employer types that can choose a different method of paying their UI costs:
- Nonprofit and public entity employers can choose the Reimbursable Method of Paying UI Benefits.
- School employers can choose to participate in the School Employees Fund, which is a special reimbursable financing method available for school districts.
Employers are required to withhold mandatory employee payroll deductions (SDI and PIT) and forward these to the EDD.
Note: Wages are generally subject to all four payroll taxes. However, some types of employment are not subject to one or more payroll taxes. For more information, refer to Information Sheet: Types of Employment (DE 231TE) (PDF) and Information Sheet: Types of Payments (DE 231TP)(PDF).
We’re Here to Help You
If you are an existing employer or are starting a new business, including household employers, below you can find important links and resources to help you manage your payroll taxes for your business.
Payroll Taxes
- What Are State Payroll Taxes?
- Register as an Employer
- Are My Workers Employees or Independent Contractors?
- Payroll Tax Webinars
- Reporting Requirements
- Household Employers
- Voluntary DI Plan Employers
Taxes and Wages
Forms and Publications
Interest Rate and Tax Credits
Holidays
Other Important Information
Payroll Taxes for Your Business
You can find all the information and resources you need for filing, paying and managing your payroll taxes for your business. e-Services for Business is a fast, easy, and secure way to manage your employer payroll tax account online.
Filing and Payment
- E-file and E-pay Mandate for Employers
- File and Pay Options
- Online Payroll Tax Payment Plan
- Calendar – Payroll Tax Due Dates
- Required Filings and Due Dates
- Correcting Prior Reports or Deposits
- Make Your Payroll Tax Deposits on Time
Reporting Requirements
- Reporting Requirements
- New Employee Registry Reporting
- Independent Contractor Reporting
- Cannabis Industry Payroll Tax Reporting
- Year-End Notification Requirements
Managing Your Business
- Rates and Withholding
- Changes to Your Business
- View your Payroll Tax Rates
- Federal Unemployment Tax Act (FUTA)
- Video: How to Protect Your Business from Higher Unemployment Insurance (UI) Taxes
- Managing Unemployment Insurance Costs (DE 4527) (PDF)
Workers’ Compensation Insurance
California law says all employers must have workers' compensation insurance to protect employees if they get hurt on the job. For more information visit the Department of Industrial Relations online at Division of Workers’ Compensation - Employer information.
Other Resources
- Payroll Taxes FAQs
- California Employer's Guide (DE 44) and the Household Employer's Guide (DE 8829)
- Military Spouses Residency Relief Act
- Completing Benefit Audit Forms
- California Tax Service Center: Sponsored by California’s tax agencies (Board of Equalization, California Department of Tax and Fee Administration, EDD, and Franchise Tax Board) and the IRS for one-stop tax assistance.
- GO‑Biz – Governor’s Office of Business and Economic Development.
- CalGOLD – Business Permits Made Simple.
- California State Controller’s Office – Report Unclaimed Property.
- Taxpayer Advocate
- Layoff Alternatives
- Assembly Bill 1643 – A Report to the California Legislature.
Help Fight Fraud and Protect Your Business
We are dedicated to fighting fraudulent activity and protecting benefits for California workers in need.
Learn about the types of fraud and how to report fraud, including identity theft. You can also find information about the consequences of fraud through penalties and prosecution.
For More Information
- EDD's Underground Economy Operations
- California Unemployment Fraud by the Numbers (PDF)
- Help Us Fight Fraud (DE 2370) (PDF)
- Unemployment Insurance Benefits: What You Need to Know (DE 1275B) (PDF)
- FAQs – Reporting Work and Wages
- Protect Your Business from Higher Taxes: Help Prevent Improper Payment of UI Benefits
- What You Should Know About Unemployment Scammers (PDF)