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California Payroll

Did you know that California has a requirement administered by the Franchise Tax Board to withhold state tax on payments made to non-resident independent contractors? That California is also one of five states with required, worker-funded temporary disability insurance?

California Compensation

Employers covered by California's minimum wage law must pay employees at least $8.00 an hour.

All employees are covered, except those specifically exempt by wage order; among those exempt are:

executive, administrative or professional employees;
outside salespersons; and
lawyers, doctors, dentists, optometrists, architects, engineers, teachers, accountants
and other professionals licensed or certified by the state.

California Payroll

Employers covered by California's wage payment law must pay wages at least twice in a calendar month. Payment for the first half of the month must be made by the 26th day of the month and payment for the second half must be made by the 10th day of the following month.

California Unemployment:
Taxable Wage Base ($000s)	7,000
New Employer Rate (% Taxable Wages)	3.5
Employee Tax Rate (% Taxable Wages)	None
Period Effective	Calendar Year 2011

California Payroll Links

California Franchise Tax Board >> PO Box 1468 Sacramento, California 95812-1468 800.852.5711	California Economic Development Department - Taxpayer Assistance Center >> PO Box 2068 Rancho Cordova, California 95741 888.745.3886

California Economic Development Department >> 800 Capitol Mall, MIC 83 Sacramento, California 95814 888.745.3886	California Laws >> Access the State Constitution, Statutes and the 29 codes that comprise California law.

California Tax Service Center >> The California Tax Service Center website offers a variety of resources for Small Business owners including payroll seminars and a Small Business Assistance Center.	California Employer's Guide >> Download the 2007 version of the California Employer's Guide.

Tax Forms and Publications >> Access helpful tax forms and publications from the California Employment Development Department's website.

California Income Tax Withholding

California's law requires employers to withhold state personal income tax (PIT) from their employees' wages and remit the amounts withheld to the Employment Development Department.

Persons in business for themselves (independent contractors) are not employees and generally not subject to withholding.

California has no specific reciprocal taxation agreements with other states, but residents of Arizona, Guam, Indiana, Oregon and Virginia are allowed a credit toward their California income tax liability for taxes paid to their home states.

California Benefits

California Voting Rights:
Employer Right to Schedule Voting Hours	Yes
Pay Deduction for Voting Time Leave	Time Off with Pay Limited to 2 Hours

California requires employers to allow employees sufficient leave time to vote. The law does not specify the exact amount of leave time that must be granted. Unless they have a different agreement with employees, employers can grant time off at the beginning or end of a regular work shift, whichever gives employees the most time for voting and the least time away from work.

California Payroll Calculator

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Follow the link to learn more about calculating payroll tax where there are definitions and further explanation of how to calculate California payroll taxes. If you are tired of doing it yourself we encourage you to call 877.954.7873 to speak with a payroll expert or just get a free personalized payroll service quote.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

SurePayroll, Inc. and its subsidiaries assume no liability and make no warranties on or for the information contained on these state payroll pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.