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Covers what California employers withhold from wages, including state income tax, State Disability Insurance and Paid Family Leave, plus employer-paid unemployment tax. Explains registering with the EDD and the DE-9 and DE-88 forms used for filing and payment.
California employers withhold state income tax, State Disability Insurance and Paid Family Leave from employee wages, and pay state unemployment tax. Register with the EDD, file Form DE-9 quarterly and remit payments with Form DE-88.
California requires employers to withhold state income and applicable local income taxes from employee paychecks, in addition to employer-paid state unemployment taxes. Employees may fill out Form DE4, Employee's Withholding Exemption Certificate, to be used when calculating withholdings.
California also has a mandated state disability insurance (DI) program where premiums are paid from employee wages. California employers must also withhold paid family leave (PFL) insurance from employee wages.
Note: California does not have any reciprocal agreements with other states.
There may be local taxes imposed in California. For more information, see the California Department of Tax and Fee Administration's local and district taxes page.
Both forms can be filed and paid online using Employer Services Online.
Visit the California Employment Development Department. The California Employer's Guide outlines all requirements and regulations associated with state payroll taxes.
California employers withhold state income tax and any applicable local income taxes from employee paychecks, plus State Disability Insurance premiums and Paid Family Leave insurance. State unemployment tax is paid by the employer rather than withheld.
No. California does not have any reciprocal agreements with other states.
Form DE4 is the Employee's Withholding Exemption Certificate. Employees may fill it out so the employer can use it when calculating California withholdings.
Form DE-9, the Quarterly Contribution Return, is filed quarterly by the end of April, July, October and January. It reports state income withholdings, unemployment insurance, disability insurance and family leave insurance, and can be filed online through Employer Services Online.
Register with the California Employment Development Department for unemployment taxes, wage reporting, withholding taxes and disability and family leave insurance payments, using Employer Services Online. You receive an eight-digit EDD account number after registering, and it is used to file and pay all California payroll taxes.