California Payroll Services

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California State Income Tax, Payroll Tax, and Employer Taxes

Get your California State Tax ID Number

Click Here to Obtain State Tax or Unemployment Tax ID
Note: California is a "Joint Application" State. One application for one ID number that satisfies SIT and SUI requirements.

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 Wage and Hour Laws

Employers covered by California's minimum wage law must pay employees at least $14.00 an hour for employers with 26 or more employees, $13.00 for employers with 25 or fewer employees. 

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 for Employers

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)    3.4

Employee Tax Rate (% Taxable Wages)     None

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 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 State Tax Resources

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.

This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant.
If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.

Information accurate as of December 2020