California payroll tax and registration guide

Updated September 8, 2023

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
• Paying employees in other states?

Why is this important?

The following information requests and registration instructions are required before you can use a payroll provider to run payroll. This is in compliance with state payroll tax regulations. Without this information, OnPay is unable to file or deposit any tax payments for your company, and will not be responsible for any resulting penalties or interest. Note: If this isn't the only state where you have employees, there will be a separate guide like this one for each state where you hire and pay workers. 

Let Middesk handle your state tax registrations (and more)

If you'd like help, our partner Middesk makes hiring employees and staying compliant with every state agency simple and easy.

• Register with every state agency to get the tax IDs you need within minutes
• Stay compliant as you grow by managing agency mail and notices in your dashboard
• Manage your government accounts in one place on Middesk's intuitive platform
• Foreign Qualify with the Secretary of State to create payroll tax accounts 

Learn more about Middesk→

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 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.

Other resources

• California payroll tax rate calculator

• State-by-state tax agency websites

• How unemployment works

• Hiring your first employee

• 2020 federal unemployment tax rates