California Payroll Tax Registration

Sep 24, 2026

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.

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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 PLLC, Professional Corporation, LLP, LLC, Corporation

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. 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.

  4. 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.

California's Payroll Registration Agencies

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