Public School Employers

A public school employer is defined by the California Government Code section 3540.1 as public schools, school districts providing instruction for kindergarten through 12^th grades (K-12), governing boards of school districts, county boards of education, county superintendents of schools, charter schools that have been declared public school employers pursuant to subdivision (b) of Section 47611.5 of the Education Code, adult educational institutions, and Community Colleges which have a merit system pursuant to any provision of the Education Code and are supported by public funding.

Registration Requirements

To register for an employer payroll tax account number, gather the following information:

Name and Social Security number of all principal officers or administrators.
Physical business address and mailing address.
Business phone number.
Valid email address (contact person and business).
Date of first payroll when wages exceed $100.
Federal Employer Identification Number (FEIN). A FEIN can be obtained by going to the IRS website.
Industry Description - What is the industry, product, or service that represents the greatest portion of your sales and revenue?
Previous EDD employer payroll tax account information, if applicable.
Doing Business As (DBA), if applicable.
Name, phone number, address (if different from business or mailing address) for contact business contact person

Optional

If you elect to enroll in Unemployment and Disability Insurance Elective Coverage, have the following documents available as you complete your registration for an employer payroll tax account number.

How to Register for an Employer Payroll Tax Account Number

Use e-Services for Business to apply for your employer payroll tax account number and be prepared to attach any applicable supporting documentation. It’s fast, easy, secure, and available 24 hours a day, 7 days a week.

1 - Create a username and password

Go to e-Services for Business.
Select Enroll.
Enter the required information to create a username and password and select Continue.
Choose your security questions and answer each question, then select Continue.
Review the Enrollment Summary and print a copy for your records, then select Submit.
Select the verification link in the email we sent you to complete the enrollment process.

Important: If you do not verify your email address within 24 hours, you will need to restart the enrollment process.

2 - Log in to e-Services for Business

Select New Employer, then select Next.
Select Register for Employer Payroll Tax Account Number.
Complete the online registration application.
Select Submit.

Important: We may contact you if more information is needed to complete your request

Public School Employers Finance Method

Assembly Bill (AB) 644, passed by the Legislature on January 19, 1978, gives public school employers in California the following options when choosing a finance method:

School Employees Fund Method

Only public non-profit school entities K-12, Community Colleges, County Offices of Education, Regional Occupational Programs, Joint Powers of Authority, and Charter Schools can participate in the School Employees Fund (SEF). For more information, visit School Employees Fund.

Cost Reimbursement Method

Individual Cost Reimbursement Account

The public school agrees to reimburse the UI Trust Fund for every dollar of UI benefits paid to ex-employees.
The EDD assigns one account number for reporting purposes. The account is subject to reporting wages for UI, ETT, PIT, and SDI (if elected).

The Cost Reimbursement method may be canceled during January of any year, after being in effect for a minimum of FIVE COMPLETE CALENDAR YEARS. The public school retains liability for ALL benefits paid on wages reported under this method. This liability could accrue for as much as three years after cancellation of this method of financing.

Supporting documentation

Provide a copy of the IRS section 501(c)(3) of the Internal Revenue Code exemption letter, if applicable.
Selection of Financing Method by a Non-Profit Organization (DE 1SNP), if applicable.

Cost Rate Method

New employers pay 3.4 percent for up to three years plus 0.1 percent of taxable wages for the Employment Training Fund (ETT). Based on the employer’s experience rating, the Unemployment Insurance (UI) rate could increase to a maximum of 6.2 percent.
The rate is applied against calendar year taxable wages of $7,000 for each employee.
The benefits resulting from claims where employees quit without good cause or are fired for work-connected misconduct will not result in direct charges to the employer's account. These circumstances must be established by each employer answering their claim notices. This conserves the employer's reserve account; thereby contributing to a lower basic rate.
The Employment Development Department (EDD) assigns one account number for reporting purposes. The account is subject to reporting wages for UI, ETT, Personal Income Tax (PIT), and State Disability Insurance (SDI) (if elected).
The Contribution Rate method option may be dropped at the end of any calendar quarter, and the liability ends with the last contribution payment.

Additional Resources

Information Sheets

Additional Information Sheets are available online at Payroll Taxes – Forms and Publications.