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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
  • California Payroll for Employers
  • California Income Tax Withholding
  • California Benefits
  • California Links


California Compensation

Employers covered by California's minimum wage law must pay employees at least $10.50 an hour for employers with 26 or more employees, $9.00 for employers with 25 or less 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

Period Effective                                             Calendar Year 2016


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 Links