California payroll tax and registration guide

Why is this important?

To maintain compliance with state payroll tax regulations, you must provide the following information before you can use OnPay to run payroll:

• State Employer Identification Number and state/local tax IDs
• Tax rates - State tax offices set these rates based on the type, age, and size of your business
• TPA and power of attorney - Most tax offices require this before we can submit quarterly wage reports and deposits on your behalf

This information must be provided and maintained by you in order for OnPay to accurately file and deposit tax payments for your company. OnPay is not responsible for any penalties or interest that incur due to missing or incorrect company tax information.

Each state has its own requirements, so if you pay employees in more than one state, you’ll find separate tax guides for each state.

See what information you need to provide OnPay, and what taxes and filings OnPay handles for California Employers.

• 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:
  
  

  All California employers	What is this?
  Make sure your business is registered with the California Employment Development Department (EDD)	Registers your business to file and pay taxes in California More info >
  Provide OnPay with your California EDD Tax ID and deposit schedule	The employer identification number issued by the California Employment Development Department More info >
  Provide OnPay with your California Unemployment (SUI) Rate	A tax rate you receive annually from the California Employment Development Department More info >
  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 More info >

• Taxes and filings OnPay handles for California Employers

  Withholding Tax

  Form DE 88 / Form DE 88 ALL

  Payroll Tax Deposit

  - Semi-weekly or Monthly

  
  

  Unemployment Insurance Tax

  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
  Form DE 34	Report of New Employee(s)	- As required

Where you can find the tax account numbers you need

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%.

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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