California Payroll Tax Registration

May 8, 2025

If you are an employer in California who has recently hired an employee, you will need to register for payroll taxes with the state. This registration process ensures that you are compliant with state tax laws and can properly withhold and remit taxes on behalf of your employees.

How California Payroll Registration Works

There is one payroll tax setup task you may need to complete in California to get your new hire on payroll for the first time. You can follow the guide below to help you get registered directly with the California agencies or use Mosey to do it.

California Employer Account Setup for Corporation, LLP, LLC

If you plan to have employees in California, you must register for an employer account with the Employment Development Department within 15 days of your first payroll of $100 or more. You will be registered for: (1) Unemployment Insurance, (2) Employment Training Tax, (3) State Disability Insurance withheld from employee wages, and (4) Personal Income Tax withheld from employee wages. Note: 501(c)(3) nonprofit organizations have the choice to either pay unemployment contributions on taxable wages each quarter or elect to reimburse the California Employment Development Department unemployment fund for benefits paid to terminated employees.

  1. Enroll in the Employment Development Department e-Services for Business

    Create a username and password for the Employment Development Department Employer Services Online portal.

  2. Register for Employer Payroll Tax Account Number

    Log in to e-Services for Business to register as a new employer.

  3. File Selection of Financing Method Form (Nonprofits Only)

    Nonprofits who would like to opt for the reimbursable payment method must mail a completed Selection of Financing Method by a Nonprofit Organization Form (DE 1SNP) and a copy of your organization's IRS determination letter to the California Employment Development Department.

  4. Configure Payroll with Your Unemployment Information

    Provide your California Employment Development Department (EDD) Account Number and your assigned unemployment tax rate or reimbursable status to your payroll provider.

California's Payroll Registration Agencies

More from the blog

Learn how to keep your business compliant in all 50 states across payroll, HR, Secretary of State, and tax.

Corporate Transparency Act: What You Need To Know

Regulations that impact businesses are constantly evolving, and many of these regulations impact businesses of all sizes. Failure to comply with regulations or reporting requirements can result in fines or penalties that limit or permanently revoke your ability to do business. Business owners need to understand the requirements of the Corporate Transparency Act to ensure compliance and remain in good standing. Let’s discuss everything you need to know about the Corporate Transparency Act.

Kaitlin Edwards | Mar 4, 2024

Mosey raises $18MM to build the compliance platform for the future of work

The global pandemic accelerated the adoption of remote work and no one can imagine going back. Businesses can hire the best person for the job, no matter where they live. People can save time and money on their commutes, spend more time with family, and have greater flexibility to live where they want. For startups in particular, out of state hiring continues to grow—from 34% of new hires in 2019 to 62% in 2022[0].

HR Risk Management: 8 Types and How To Mitigate

Human resources (HR) risk management is a critical part of any organization’s operational strategy. The risk management process involves identifying, assessing, and mitigating risks associated with managing a workforce. These risks range from compliance challenges to employee behavior issues, and their effective management can keep your workplace stable, productive, and legally compliant. Mosey’s guide explores eight key types of HR risks, why they matter, and how to mitigate them to protect both your employees and your organization on the whole.

Gabrielle Sinacola | Dec 14, 2024

Ready to get started?

Schedule a free consultation to see how Mosey transforms business compliance.