Small Business Month
There’s nothing small about small business.
According to the US Small Business Administration, approximately half of Americans either own or work for a small business, and they create about two out of every three new jobs in the US each year.
Governor Gavin Newsom issued a proclamation declaring May 2019 as “Small Business Month” in California. The Employment Development Department (EDD) recognizes the great impact of small businesses on California’s economy and local communities, and celebrates their contributions to the state of California.
Here are some of the highlights illustrating how valuable small businesses are in our state:
- California, the fifth largest economy in the world, has more than 3.9 million small businesses operating in the state – over 40 percent of which are minority-owned.
- Small businesses account for over 99 percent of total businesses in California, employing seven million people – nearly half of the state’s private workforce.
- The 70,350 small businesses that exported goods from California generated 43 percent of the state’s $152 billion to total exports.
Learn how the EDD provides assistance and support to small businesses and job seekers with these small business success stories.
EDD Programs and Services
The EDD offers a variety of services and programs to help you expand your business, manage payroll tax accounts, meet legal obligations, and make smart business decisions.
Recruit new employees with CalJOBS—California’s online labor exchange system provided by the EDD. Post job openings, browse résumés, and find qualified candidates using the 24-hour virtual recruiter. For a summary of services available on CalJOBS, visit CalJOBS Information.
Disability Insurance (DI)
There may be times when an employee is unable to work due to a disability. As an employer, be better informed to help your employee through those times. Visit State Disability Insurance (SDI) for more information.
Disability Insurance Elective Coverage (DIEC)
For business owners or self-employed individuals not required to contribute to SDI, the EDD offers an optional DIEC program that can protect you against partial loss of income and is funded through quarterly premiums. Individuals covered by DIEC are also covered by PFL. For more information, view the Disability Insurance Elective Coverage Program (PDF) fact sheet.
Disaster Unemployment Assistance (DUA)
When authorized by the President of the United States, DUA provides temporary partial income replacement to individuals whose work or self-employment is interrupted due to a major disaster. This includes employees, farmworkers, and business owners who may not normally qualify for regular state Unemployment Insurance (UI) benefits.
e-Services for Business
The EDD has made it fast, easy, and secure for employers to register for an employer payroll tax account number, manage payroll tax accounts, file returns, and make payments online with e-Services for Business. Employers are required by law to electronically submit all employment tax returns, wage reports, and payroll tax deposits to the EDD. Enroll in e-Services for Business today to meet this requirement. For more information, visit E-file and E-pay Mandate for Employers.
Labor Market Information (LMI) Online
LMI Online is a source of high quality and up-to-date information about California’s labor market and economy. LMI Online gives employers access to data to make informed decisions on a variety of workforce and economic areas that include employment, unemployment, industries, occupations, and wages.
Paid Family Leave (PFL)
There may be times in the life of a working person when there is a need to care for a loved one. Whether it’s a working parent bonding with a new child or an employee caring for a seriously ill family member. As an employer, be better informed to help your employees in times like these. Visit California Paid Family Leave for more information.
Payroll Tax Seminars
The EDD offers payroll tax seminars, either classroom-style or online, at no cost! The classroom seminars are offered in a variety of locations throughout California and online courses allow you to learn at your own pace. Seminars are customized to benefit everyone: established businesses, those just getting started, individuals anticipating going into business, and payroll agents. Visit Payroll Tax Seminars to see the many seminar options available.
When an employee files a DI or PFL claim, employers are legally required to respond to EDD notices within two days. SDI Online is the best method to meet the required response time because employers can complete the notice electronically for DI claims.
State Disability Insurance (SDI)
By law, employers are responsible for providing information to employees about the SDI program. The EDD can help you inform your employees by providing pamphlets and posters at no cost. Learn more by visiting Employer Requirements.
State Information Data Exchange System (SIDES)
What happens when a former employee files for Unemployment Insurance (UI) benefits? If you were their last employer, you are automatically sent the EDD’s Notice of Unemployment Insurance Claim Filed (DE 1101CZ) (PDF), either by mail or electronically through SIDES. SIDES provides employers with a secure and timely way to electronically receive and respond to this notice. For more information on how to subscribe to SIDES, watch our SIDES for Unemployment Insurance (YouTube) video. Responding promptly to EDD’s notices is your opportunity to provide separation information about an employee who quit, was discharged, or laid off. This information helps the EDD accurately charge your UI account and prevent improper payments. For more helpful ways to control UI costs, watch our How to Protect Your Business from Higher UI Taxes (YouTube) video.
Work Opportunity Tax Credit (WOTC)
Did you know there’s a tax credit that promotes the hiring of individuals who qualify as a member of a target group? The WOTC program provides a federal tax credit incentive of up to $9,600 for employers to hire individuals from 10 different groups determined to need additional support to enter the workforce. To learn more about this program and other tax credits and incentives, visit Tax Credits and Incentives.
Work Sharing Program
The EDD’s Work Sharing Program provides employers with an alternative to layoffs by providing impacted workers with prorated UI benefits. This program allows employers to retain trained workers and helps mitigate the financial impact on employees and their related benefits.
- America’s Job Center of CaliforniaSM (AJCC)
Visit a local AJCC for assistance with finding qualified workers using focused recruitment campaigns for your business, scheduling services to screen and interview applicants, help with identifying resources to meet your training needs, and more.
- California Employer Advisory Council (CEAC)
The CEAC is an independent, non-profit organization that works with the EDD to improve the quality of employment services in California. The EDD partners with the CEAC to offer informational seminars to keep employers current on employment-related laws and regulations.
- California Secretary of State
The California Secretary of State developed five steps to assist in starting a business. The Secretary of State's office is comprised of nearly 500 people who are dedicated to making government more transparent and accessible in the areas of elections, business, political campaigning, legislative advocacy, and historical treasures.
- California Small Business Association
A volunteer-driven, nonprofit, nonpartisan organization that makes its mission to provide small business with a meaningful voice in state and federal governments.
- Internal Revenue Service
The Internal Revenue Service has several resources to help small business owners and self-employed people understand and meet their tax obligations.
- Office of Small Business Advocate (OSBA)
The OSBA provides information and assistance to small businesses to help them succeed in the California marketplace by hosting summits, forums and interagency meetings, and maintaining a list of resources for small business technical assistance, financing, and state procurement.
- Small Business California
A proactive, nonpartisan business advocacy organization responsive to the needs of California small business owners.
- Small Business Majority
A national small business advocacy organization, founded and run by small business owners to focus on solving the biggest problems facing small businesses today.
- US Small Business Administration
Created to aid, counsel, assist, and protect the interests of small business concerns, to preserve free competitive enterprise, and to maintain and strengthen the overall economy of our nation.