California payroll taxes include California Withholding, State Disablity Insurance - SDI, State Unemployment Insurace - UI and Employment Training Tax - ETT. Reporting is done quarterly using Froms DE 9 and DE 9C. California Employment Development Department, EDD allows individual employers directly upload form DE 9C to the EDD website. Payrollcoop creates the California reports in the EDD approved format to upload to EDD website.
California and New York are amongst the states with most complicated payroll taxes. There multiple steps to calculate taxes and deductions for a California employee paycheck. The payroll software must use the data in California Exemptions Table, then the Allowances Table must be visited and finally the Withholdings Table to calculate the withholding. Besides withholdings there are two more items that must be calculated on each paycheck: UI, Unemployment Insurace and ETT, the Employment Training Tax. The UI tax is only paid by the employer and is applicable to the first $7,000 of each employee's annual income. The ETT tax is also paid only by the employer and currently is equal to 0.1% of each employee's first $7,000.00 annual income. There is also the State Disability Insurance tax which is paid only by the employee. For 2021 the tax rate for the State Disability Insurace, SDI, is 1.20% of the first $128,298.00 of each employee's annual income. All these deductions and taxes must be reported on a quarterly basis. Forms DE 9 and DE 9C must be reproted online.
Payroll co-op Software creates the required CSV file for you to upload. The due date and the grace period for depositing employer's liabilities depends on the amount of taxes due.
See California Tax Deposit Schedule for details.