California Payroll & Paycheck Tax Calculator
Tax matters can be overwhelming. Have you ever wondered about the exact amount of tax deducted from your California employees' paycheck? Or struggled with calculating employee payroll taxes? Rest assured, you're not alone. Our user-friendly Payroll Tax Calculator is here to provide answers to these common questions and more. For employees curious about how much they should receive in their paycheck, this calculator demonstrates the tax breakdown by area.
California Payroll Tax Steps
Estimating pay can be a fussy, manual process that takes valuable time away from, well, everything else. One solution? Use our calculator to withhold appropriate state taxes from employee paychecks and follow Golden State payroll policies. But even with a lot of the legwork done for you, what do you need to know about California’s payroll tax laws?
Here are some key steps you’ll have to take to make smarter payroll decisions.
Step #1: Register for a California State Tax ID
Submit one application through the Employment Development Department (EDD) to get your state payroll tax account and unemployment insurance set up so you can legally withhold and submit California Personal Income Tax (PIT), Unemployment Insurance (UI), Employment Training Tax (ETT), and State Disability Insurance (SDI). It’s one easy online application.
Step #2: Fill out California Tax Paperwork to Get Right with the State
From employee forms that will help you calculate how much state tax to withhold from each employee’s paycheck to mandatory new hire paperwork to facilitate management of California programs like State Disability Insurance (SDI) and paid family leave, you’ll get all your state paperwork in order before adding newcomers to the payroll.
And be sure to look out for forms not all employers need to file, like:
- DE 7: Annual reconciliation statement
- SDI Voluntary Plan forms: If you offer a private disability plan
- IRS forms: If you're in the combined federal/state filing program
- DE 26: For registering EFT (electronic tax payments)
- Workers' comp filings: Proof of required insurance
- ACA health coverage reporting: If you're a large employer
Step #3: Learn California Minimum Wage Laws to Handle Payroll Confidently
You’ll need the basics on California minimum wage law, which As of January 1, 2024, the state's minimum wage stands at $16.50 per hour for most workers. It’s not all straightforward, though. Certain sectors have higher minimum wages; for instance, fast-food workers earn $20 per hour starting April 1, 2024. And many cities and counties have implemented local ordinances with even higher wage requirements.
Then there’s overtime. California mandates that non-exempt employees receive 1.5x their regular pay rate for hours worked beyond 8 in a single day or 40 in a week. Double-time pay is required for hours worked over 12 in a day.
Step #4: Don’t Forget California’s Pay Period Laws
Pay period laws in California dictate when and how employees must be paid. In California, most employees must be paid at least twice a month. Wages earned between the 1st and 15th of the month should be paid by the 26th of that month. Wages earned between the 16th and the last day of the month are due by the 10th of the following month. There are exceptions for executives and administrative workers, as well as farm employees.
Finally, remember paid leave laws: California law mandates paid sick leave, bereavement leave, and leave to care for a serious illness, loved one, or new child.
Step #5: Use this California Payroll Calculator
Now, let’s make this easy. Tackle gross pay, take-home pay, deductions, and tax withholding, whether your employees are hourly or salaried, with the California payroll calendar. You’ll be able to withhold the right taxes and issue paychecks that follow all the Golden State rules. Whether you’ve got a few employees or a growing team, payroll just got easier.
Step #6: Make Payroll Tax Payments to California’s EDD and File Quarterly Payroll Reports
Payroll and tax obligations are never a one-and-done — employers are subject to periodic filings with due dates. Most companies use form DE 88 (digital is easiest!) to submit withheld taxes, UI, and SDI to the state periodically. Payment due dates depend on deposit schedules, which are based on the amount of payroll taxes you owe — either quarterly, monthly, or semi-weekly.
Fingercheck and any related entities do not offer tax, accounting, or legal advice. This content is designed for informational purposes only and should not be considered a source of tax, legal, or accounting advice. It is recommended that you consult your tax, legal, and accounting advisors before undertaking any related activities or transactions.