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Payroll Taxes

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

Employer paid:

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

Withheld from employee wages:

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

Most employers are Tax-Rated Employers and pay into the UI fund. There are some unique employer types that can choose a different method paying their UI costs:

Employers are required to withhold mandatory employee payroll deductions (SDI and PIT) and forward these to the EDD.

Note: Wages are generally subject to all four payroll taxes. However, some types of employment are not subject to one or more payroll taxes. For more information, refer to Information Sheet: Types of Employment (DE 231TE) (PDF) and Information Sheet: Types of Payments (DE 231TP)(PDF).

We’re Here to Help You

If you are starting a new business or are an existing employer, including household employer, below you can find important links and resources you will need to manage your payroll taxes for your business.

Payroll Taxes

Taxes and Wages

e-Services for Business

Use e-Services for Business to manage your employer payroll tax account online.

Contact Us

If you have questions, Contact Payroll Taxes. You can also contact the Taxpayer Assistance Center at 1-888-745-3886 or visit your local Employment Tax Office.