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Step 2: Get Your Information in Order

  • 1. Register as an Employer
  • 2. Get Your Information in Order
  • 3. Register for a Payroll Tax Account
  • 4. Report Employees and Independent Contractors
  • 5. Withhold and Pay Payroll Taxes
  • 6. File Tax Returns and Wage Reports
  • 7. Provide Required Notices

Employer Types and What You'll Need to Register

Your registration requirements depend on the type of business you operate. Before you begin, gather the information below and review the Employer Type for descriptions and any additional registration requirements. This will help you complete your registration correctly and avoid delays.

Information You'll Need

  • Names and Social Security numbers for all responsible parties, including:
    • Individual owners
    • Co-owners
    • General partners
    • Officers
    • Members
    • Partners
    • Principal officers
    • Administrators
  • Business information:
    • Physical address
    • Mailing address
    • Phone number
    • Email address
  • Contact person information (if different from the business):
    • Name
    • Address
    • Phone number
    • Email address
  • Your nine-digit Federal Employer Identification Number (FEIN). If you do not have one, you can get a FEIN from the IRS.
  • Previous EDD employer payroll tax account information, if applicable.
  • Date of your first payroll when wages exceeded $100. Note: Household employers should review their employer type for specific wage and payroll requirements.
  • Your exact legal business name as registered with the California Secretary of State (SOS).
    • This applies to corporations, Limited Liability Companies (LLCs), Limited Liability Partnerships (LLPs), and Limited Partnerships (LPs). Note: This requirement does not apply to Household Employers or Indian Tribe Employers.
    • You may need to provide an SOS ID Number, Corporation ID Number (7 to 12 digits) or LLC ID Number (7 or 12 digits)
    • Visit the California Secretary of State website to verify your business information, if needed.

Employer Types 

Your registration requirements depend on the type of business you operate. Before you begin, gather the information below and review the Employer Types for a description and any additional registration requirements. This will help you complete your registration correctly and avoid delays.

An agriculture employer is a farm operator or farm labor contractor who hires, trains, and pays workers to perform agricultural work.

Agricultural work is generally subject to:

  • Unemployment Insurance (UI)
  • Employment Training Tax (ETT)
  • State Disability Insurance (SDI)

Agricultural work is not subject to Personal Income Tax (PIT) withholding unless both the employer and employee agree to withhold PIT.

Additional Information Needed to Register

  • Industry description – List the crop, industry, product, or service that generates the largest share of your sales or revenue.
  • Non-agricultural workers – Indicate whether you also employ workers who perform non-agricultural work.

A church or religious order employer is a church, association of churches, or an organization that operates primarily for religious purposes and is operated, supervised, controlled, or supported by a church or association of churches. The organization must be recognized by the Internal Revenue Service (IRS) as a church.

Employees of a church or religious order are generally:

  • Not subject to Unemployment Insurance (UI)
  • Not subject to Employment Training Tax (ETT)
  • Not subject to State Disability Insurance (SDI)
  • Subject to Personal Income Tax (PIT) withholding

Employers may choose to provide UI and SDI coverage for these employees.

Additional Information Needed to Register

  • A copy of the 501(c)(3) exemption letter that includes section 170(b)(1)(A)(i) of the Internal Revenue Code.
  • Industry description – Describe the primary service or activity of the organization that represents the largest portion of its operations or revenue.

Optional:

A commercial employer is a business that operates for profit and employs workers who are subject to California payroll taxes.

Commercial employers must:

  • Report employee wages
  • Pay Unemployment Insurance (UI) and Employment Training Tax (ETT)
  • Withhold and remit State Disability Insurance (SDI) and Personal Income Tax (PIT)

Some family employment is treated differently. Wages paid to the following family members are not subject to UI, ETT, or SDI, but are subject to PIT withholding:

  • An individual owner employing a spouse, registered domestic partner, parent, or minor child
  • Co-owners employing their minor child
  • A partnership made up only of siblings employing a parent

Additional Information Needed to Register

  • Doing Business As (DBA) name, if applicable.
  • Industry description – List the industry, product, or service that generates the largest share of your sales or revenue.

Optional:

If you choose to enroll in UI and DI elective coverage, have the following document ready before you begin registering for an employer payroll tax account number.

A commercial employer is a for-profit business that hires employees and is subject to California payroll taxes. Commercial employers can be organized as a:

  • Corporation
  • Limited Liability Company (LLC)
  • Limited Liability Partnership (LLP)
  • Limited Partnership (LP)

Commercial employers must:

  • Report employee wages to EDD
  • Pay Unemployment Insurance (UI) and Employment Training Tax (ETT)
  • Withhold and remit State Disability Insurance (SDI) and Personal Income Tax (PIT) from employee wages

Additional Information Needed to Register

Industry description – List the industry, product, or service that generates the largest share of your sales or revenue.

Some employers are only required to withhold and remit (deposit) Personal Income Tax (PIT). To determine whether you must deposit only PIT or all payroll taxes, refer to:

Additional Information Needed to Register

  • Industry description – List the industry, product, or service that represents the largest portion of your sales or revenue.
  • Provide a copy of the 501(c)(3) exemption letter, if applicable.

You may be a household employer if you hire someone to work in or around your home for the benefit of your personal household.

If you operate a business from your home (for example, a daycare), you must register as a commercial employer instead.

A household employee may work on a temporary or part-time basis.

See Household Employer’s Guide (DE 8829) or our Household Employer for more information on:

  • How to determine if you qualify as a household employer
  • Who qualifies as a household employee
  • Annual and quarterly household employer types
  • When household employers become subject to payroll taxes

Payroll Tax Requirements

Household employers are not required to withhold Personal Income Tax (PIT). However, they must report PIT wages for each household employee.

If a household employee requests PIT withholding and you agree, you must report and send the withheld PIT to EDD. California Withholding Schedules are available online.

Additional Information Needed to Register

  • Physical address where household employees provide services
  • Mailing address
  • Phone number linked to the physical address
  • Date of first payroll when wages exceed $750
  • Date of first payroll when wages exceed $1,000

Optional:

If you choose to enroll in Unemployment Insurance (UI) and Disability Insurance (DI) elective coverage, have the required document ready when completing your employer payroll tax account registration.

Tribal entities (as described in Section 3306(u) of the Internal Revenue Code) are not required under the California Unemployment Insurance Code (CUIC) to participate in the State Disability Insurance (SDI) program. However, they may choose to elect Disability Insurance (DI) coverage.

Additional Information Needed to Register

  • County where the business is located.
  • Industry description – List the industry, product, or service that represents the largest portion of revenue.
  • Full legal name of the organization or tribe – Enter the tribe’s federally recognized name exactly as shown on official documents.
  • Tribal registry information – Documentation from the U.S. Department of the Interior or Federal Register confirming federal recognition as a Native American Indian Tribe.

Optional:

If you choose to enroll in elective UI and SDI coverage, have the required documents ready when completing your employer payroll tax account registration.. 

Nonprofit entities are generally subject to Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability Insurance (SDI), and State Personal Income Tax (PIT) withholding, with some exceptions.

However, nonprofits that have an IRS exemption under Section 501(c)(3) may choose how they finance their unemployment insurance costs.

Additional Information Needed to Register

  • Industry description – Describe the purpose or mission of your nonprofit organization.

Optional:

A public entity is a state or local government, or any agency, office, or department operated by a state or local government.

Additional Information Needed to Register

  • Industry description – List the industry, product, or service that represents the largest portion of your operations or revenue.

Optional:

A public school employer is defined under California Government Code Section 3540.1 and includes:

  • Public schools
  • K–12 school districts
  • Governing boards of school districts
  • County boards of education
  • County superintendents of schools
  • Charter schools designated as public school employers under Education Code Section 47611.5(b)
  • Adult education institutions
  • Community colleges with a merit system under the Education Code that receive public funding

Additional Information Needed to Register

  • County where the business is located.
  • Industry description – List the industry, product, or service that represents the largest portion of your operations or revenue.

Public School Employers Finance Method

Assembly Bill (AB) 644, passed by the California Legislature on January 19, 1978, gives school districts in California three options for financing unemployment insurance costs:

Contribution Method

  • New employers pay a 3.4% Unemployment Insurance (UI) rate for up to three years. They also pay 0.1% ETT on taxable wages.
  • Based on an employer’s experience rating, the UI rate may increase to 6.2%.
  • The rate applies to the first $7,000 of taxable wages per employee each calendar year.
  • Benefits from certain claims do not directly charge the employer’s account. These include claims involving employees who quit without good cause or were fired for work-related misconduct.
  • Employers must respond to claim notices to establish these circumstances. This helps protect the employer’s reserve account and may help keep rates lower.
  • Employers receive one account number for reporting purposes. The account reports wages for UI, ETT, Personal Income Tax (PIT), and State Disability Insurance (SDI).
  • Employers may end the Contribution Method at the end of any calendar quarter. Liability ends with the final contribution payment.

Cost Reimbursement Method

Individual Reimbursement Account

  • The school district reimburses the UI Trust Fund for all UI benefits paid to former employees.
  • EDD assigns one account number for reporting purposes.
  • The account reports wages for UI and PIT, and SDI if elected.

Joint Reimbursement Account

  • The school district joins a group of public entities.
  • The group reports wages, contributions, and benefits for all participating entities.
  • A single contribution rate applies to all entities in the group.
  • The group reimburses the UI Trust Fund for all UI benefits paid to former employees.
  • EDD assigns one account number for reporting purposes.
  • The account reports wages for UI and PIT, and SDI if elected.

Canceling the Cost Reimbursement Method

  • Either cost reimbursement method may be canceled during January.
  • The method must have been in effect for at least five calendar years.
  • The school district remains responsible for benefits paid on wages reported under the method.
  • This liability may continue for up to three years after cancellation.

Optional:

School Employees Fund Method

Only public, nonprofit school entities can join the School Employees Fund. This includes:

  • K-12 schools
  • Community colleges
  • County Offices of Education
  • Regional Occupational Programs
  • Joint Powers Authorities
  • Charter schools

For more information, visit the School Employees Fund.

  • The UI contribution rate is based on the Fund's costs and balance.
  • All participating schools pay the same UI rate each fiscal year.
  • A Local Experience Charge (LEC) also applies to UI benefits paid each quarter.
  • The LEC rate is 0, 5, 10, or 15 percent.
  • New employers pay a 10 percent LEC for their first three fiscal years.
  • After three years, the LEC is based on the employer's experience.
  • The Fund combines the unemployment costs of participating schools.
  • This helps stabilize the basic cost of unemployment benefits.
  • The Fund pays county superintendents $2 per covered employee each year.
  • This payment supports a claims management system.
  • EDD assigns one to three account numbers for reporting.
  • Employers must submit separate reports for each assigned account.
  • Employers that leave the Fund do not receive a refund of Fund money.
  • Employers cannot rejoin the Fund for 10 years after leaving.
  • Employers may leave the Fund during January of any year.
  • The Fund must be in place for at least two calendar years.
  • Employers remain responsible for certain benefits after leaving.
  • This responsibility may continue for up to three years.
  • Employers may also choose a different UI financing method after leaving.

Required Documents

If you choose the Cost Reimbursement Method or School Employees Fund Method, provide:

  • A copy of the charter, if you are a charter school.
  • A Memorandum of Understanding, if applicable.
  • Corporate bylaws, if you are incorporated.
  • Articles of Incorporation, if you are incorporated.

Optional:

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