Step 5: Withhold and Pay Payroll Taxes

  • 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

In California, there are four state payroll taxes. Two are paid by employers, and two are withheld from employee wages.

Employer-Paid Taxes

  • Unemployment Insurance (UI)
  • Employment Training Tax (ETT)

Withheld from Employee Wages

  • State Disability Insurance (SDI)
  • Personal Income Tax (PIT)

Your SDI and PIT deposit due dates depend on your federal deposit schedule and the amount of PIT you withhold. Your UI and ETT payments are due every quarter.

Use e-Services for Business, Express Pay, or other electronic file and pay options to meet the e-file and e-pay mandate for employers.

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