Paying Employees in California

California 2021 Minimum Wage: 

  • $14/hour for employers with 26+ employees
  • $13/hour for employers with 25- employees
  • $15/hour in Alameda
  • $16.07/hour in Berkeley
  • $16.84/hour Emeryville
  • $15.00/hour (26+ employees), $13.50/hour (1-25 employees) Fremont
  • $15.00/hour (26+ employees), $14.25/hour (1-25 employees) Los Angeles
  • $15.00/hour (26+ employees), $14.25/hour (1-25 employees) Malibu
  • $15.40/hour Milpitas
  • $15.24/hour (100+ employees), $15.00/hour (26-99 employees), $14.00/hour (1-25 employees) Novato
  • $15.00/hour Pasadena
  • $16.07/hour San Francisco
  • $15.24/hour South San Francisco
  • $15.00/hour San Leandro
  • $15.00/hour (26+ employees), $14.25/hour (1-25 employees) Santa Monica
  • $15.20/hour Santa Rosa

California Overtime Rules: 

  • 1.5 x’s the regular rate for non-exempt employees for hours worked over 8 in a workday or over 40 in a workweek, and for the first 8 hours worked on the 7th consecutive day of work in a workweek.  
  • 2 x’s the regular rate of pay for hours worked over 12 in a workday, and for all hours worked over 8 on the 7th consecutive day of work in a workweek.

California Paystub Requirements:

  • Gross wages earned
  • Total hours worked by the employee, except if:
      • The employee’s compensation is solely based on salary and the employee is exempt from payment of overtime under subdivision (a) of Section 515 or any applicable order of the Industrial Welfare Commission.
      • The employee is exempt from the payment of minimum wage and overtime under any of the following:
        • The exemption for persons employed in an executive, administrative, or professional capacity provided in any applicable order of the Industrial Welfare Commission.
        • The exemption for outside salespersons provided in any applicable order of the Industrial Welfare Commission.
        • The overtime exemption for computer software professionals paid on a salaried basis provided in Section 515.5.
        • The exemption for individuals who are the parent, spouse, child, or legally adopted child of the employer provided in any applicable order of the Industrial Welfare Commission.
        • The exemption for participants, director, and staff of a live-in alternative to incarceration rehabilitation program with special focus on substance abusers provided in Section 8002 of the Penal Code.
        • The exemption for any crew member employed on a commercial passenger fishing boat licensed pursuant to Article 5 (commencing with Section 7920) of Chapter 1 of Part 3 of Division 6 of the Fish and Game Code provided in any applicable order of the Industrial Welfare Commission.
        • The exemption for any individual participating in a national service program provided in any applicable order of the Industrial Welfare Commission.
  • The number of piece-rate units earned and any applicable piece rate if the employee is paid on a piece-rate basis
  • All deductions, provided that all deductions made on written orders of the employee may be aggregated and shown as one item
  • Net wages earned
  • The inclusive dates of the period for which the employee is paid
  • The name of the employee and only the last four digits of his or her social security number or an employee identification number other than a social security number
  • The name and address of the legal entity that is the employer and, if the employer is a farm labor contractor, as defined in subdivision (b) of Section 1682, the name and address of the legal entity that secured the services of the employer
  • All applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate by the employee and, beginning July 1, 2013, if the employer is a temporary services employer as defined in Section 201.3, the rate of pay and the total hours worked for each temporary services assignment. 
  • Employers must show how many days of sick leave you have available on your pay stub, or on a document issued the same day as your paycheck. If an employer provides unlimited paid sick leave or unlimited paid time off, the employer may indicate “unlimited” on your pay stub or other document provided to you the same day as your wages.

How often do you have to pay employees in California?

  • Employees must be paid at least twice per month, with an exception for executive, administrative and professional employees which can be paid once power month on or before the 26th of the month for the entire month’s salary.

When is an employee’s final check due in California?

  • Involuntary termination – at the time of termination
  • Voluntary resignation – at time of resignation (if 72 hours notice given), within 72 hours if no notice given

 

California Withholding Tax 

California Withholding Tax Registration

Wages Subject to California Withholding Tax

  • All income earned by CA residents is subject to CA income tax
  • All income earned by non-residents within CA is subject to CA income tax

Reciprocity

  • None

California Withholding Tax Due Dates:

  • CA Income tax payment due dates are dependent on the employer’s federal tax deposit schedule and the income tax amounts.  
  • For next-day federal deposit schedule:
    • Less than $350 accumulated is due quarterly on the last day of the month in the month following the quarter end
    • $350-$500 is due monthly on the 15th of the following month
    • More than $500 is due on the next business day.  
  • For semi-weekly federal deposit schedule:
    • Less than $350 is due quarterly 
    • $350-$500 is due monthly
    • More than $500 is due semi-weekly (payday Wed-Fri due the following Wednesday, paid Sat-Tues due the following Friday).  
  • For monthly, quarterly or annual federal deposit schedule:
    • Less than $350 in accumulated PIT is due quarterly
    • $350 or more in accumulated PIT is due monthly

 

California Unemployment Tax

California Unemployment Tax Registration

California Unemployment Tax Employer Liabilities

  • New employer rate: 3.4% + .1% ETT
  • 2021 Wage Base: $7,000

California Unemployment Tax Due Dates

  • Return and payment are due quarterly on the last day of the month following the end of the reporting period

 

California New Hire Reporting

  • Employment Development Department
    New Employee Registry
    PO Box 997016, MIC 96
    West Sacramento, CA 95799-7016
  • Phone: 916-255-0951
  • Fax: 916-319-4400
  • Report new hires online

 

California Child Support

  • CA SDU
    PO Box 419064
    Rancho Cordova, CA 95741
  • Phone: 866-901-3212
  • Pay California child support online

 

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