Updated February 10, 2021
This article will cover:
- What information OnPay needs from you
- What state and local taxes and filings OnPay handles for California employers
- Where you can find the tax account numbers needed
- How to authorize OnPay as a Third Party Administrator in California
- Paying employees in other states?
Why is this important?
For employers who pay employees in California, the state will require state income tax. Use this guide to learn what’s required to start running payroll while keeping compliant with state payroll tax regulations. Click on the topic below to learn more.
What information OnPay needs from you
Use this checklist to make sure you’ve covered everything required to set up your account as a California employer so OnPay can accurately file and pay taxes on your behalf:
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✔ |
To do: |
What is this? |
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Make sure your business is registered with the California Employment Development Department (EDD) |
Registers your business to file and pay taxes in California |
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Provide OnPay with your California EDD Tax ID and deposit schedule |
The employer identification number issued by the California Employment Development Department |
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Provide OnPay with your California Unemployment (SUI) Rate |
A tax rate you receive annually from the California Employment Development Department |
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Provide OnPay with your California Employment Training Tax Rate |
A required employer-paid tax that supports training in targeted industries of the CA labor market |
What state and local taxes and filings OnPay handles for California employers
OnPay handles the filing of all state and local taxes for businesses in California, including:
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Type of Tax |
Form ID |
Form Name |
Frequency |
|
Withholding |
Form DE 88 / Form DE 88 ALL |
Payroll Tax Deposit |
Semi-weekly or Monthly |
|
Unemployment |
Form DE 9 |
Quarterly Contribution Return and Report of Wages |
Quarterly |
|
Form DE 9C |
Quarterly Contribution Return and Report of Wages Continuation |
Quarterly |
|
|
Form DE 88 |
Quarterly Payment File |
Quarterly |
|
|
Other |
Form DE 34 |
Report of New Employee(s) |
As required |
Where you can find the tax account numbers needed
If you are an existing employer who has previously run payroll in California, you likely already have the IDs and online accounts needed for OnPay to process your tax filings.
If you are a new employer in California, you will need to register your business with the California Employment Development Department (EDD). This must be completed for OnPay to be able to file and pay your California taxes.
If you cannot locate any of this information, please call the California EDD at (888)-745-3886 for assistance.
California EDD Tax ID and Withholding Deposit Schedule
Existing CA Employer
- You can find your EDD Tax ID Number and withholding deposit schedule on the Quarterly Contribution Return and Report of Wages (Form DE 9 / DE 9C) or on any notices received from the California EDD.
New CA Employer: Register with the California Employment Development Department
- Visit the EDD website and click “Enroll” to register with the department.
- In most cases, when you register online you will be issued a payroll tax account number within a few minutes.
California Unemployment Rate
- To find your unemployment rate, visit the EDD website and enter your EDD Tax ID.
- The new employer rate in California is 3.4%, with a wage base of $7,000.
California Employment Training Tax Rate
- The ETT rate in most cases is 0.1%.
- If your Unemployment Tax Rate is 6.2%, then your ETT rate is 0%.
How to authorize OnPay as a Third Party Administrator in California
OnPay works with government entities on your behalf, reporting new hires to state labor departments, calculating tax rates, and filing financial reports. To do this effectively, you will need to add OnPay as your third party agent. To do so, please follow the instructions in this article.
Paying employees in other states?
If you operate in multiple states or just have employees working from home across a state line, it's important to file the correct state forms for those workers. See what forms we file in the states where you pay employees.
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