Skip to main content
Version: 1.7.3

California Payroll Tax Compliance

Employers in California must meet three key payroll compliance obligations: state income tax withholding, unemployment insurance (UI), and new hire reporting.

These requirements are administered by the California Employment Development Department (EDD) and involve specific forms, reporting schedules, and compliance rules. The sections below provide a clear overview of these obligations.

California Withholding Tax Requirements​

California employers are required to withhold Personal Income Tax (PIT) from employee wages and report payroll taxes to the California Employment Development Department (EDD).

Forms required​

Form DE-9​
  • Filed quarterly to report total payroll taxes, including California PIT withheld, unemployment insurance contributions, and other payroll taxes.
  • Due quarterly on April 30, July 31, October 31, and January 31.
  • Required even if no payroll was reported for the quarter.
Form DE-9C​
  • Filed quarterly as the continuation wage report, providing detailed employee wage information and PIT withholding amounts.
  • Due quarterly on April 30, July 31, October 31, and January 31.
  • Includes employee wage details such as SSN, total wages, and PIT withheld.
  • Must be filed even if no wages were paid (zero report required if account is active).
Note:

TaxBandits API supports the automation of DE-9 and DE-9C. See how it works

California Unemployment Insurance (UI) Requirements​

Employers are liable for California unemployment insurance tax, administered by the California Employment Development Department (EDD).

Form DE-9 is used to report unemployment insurance contributions along with other payroll taxes.

  • Filed quarterly to report total taxable wages and contributions.
  • Due April 30, July 31, October 31, and January 31.
  • Employers must file even if no wages were paid during the quarter.
Note:

TaxBandits API supports the automation of DE-9. See how it works

California New Hire Reporting​

Employers must report all newly hired and rehired employees to the California New Employee Registry, administered by the Employment Development Department (EDD).

  • Form DE-34 is used to report newly hired or rehired employees to the state.
  • New hires must be reported within 20 days of the employee’s start-of-work date. This reporting helps the state enforce child support orders and prevent unemployment insurance fraud.