✦ State Payroll Tax Registration

Register for payroll

taxes in
California
— we handle it.

Set up payroll taxes quickly in California. Our fast EDD registration help covers multiple programs but requires careful setup. We handle it all so nothing gets missed.

2,000+
Businesses served
50
States covered
98%
On-time compliance
4.9★
Google Rating
California
Registration Requirements

Register for payroll taxes today - here’s what’s required

Here are the state agencies you need to register with as an employe in your state. We handle all registrations on your behalf.

Withholding Tax

California Employment Development Department (EDD)

Handles California Personal Income Tax (PIT) withholding — the state income tax you withhold from employee wages and remit on their behalf.

Unemployment Insurance

Unemployment Insurance (UI)

Also administered by the EDD. Funds benefits for laid-off workers with new employers start at 3.4% on the first $7,000 of wages per employee, with your rate adjusting annually based on claims history.

✦ What Employers Need to Know

Key facts about your state payroll taxes.

A quick overview of what's involved before you run your first payroll.

California's EDD covers four programs in one account: UI (1.5-6.2%, new employers start at 3.4%), ETT (0.1%), SDI (1.3% for 2026, no wage cap), and PIT withholding.
California SDI rate is 1.3% for 2026 with no taxable wage limit, a significant change since 2024 when the wage cap was removed.
California has no broad local payroll taxes, though San Francisco imposes a payroll expense tax on larger businesses.
California personal income tax is among the highest nationally - progressive rates from 1% to 13.3%, plus a 1% mental health surcharge on income over $1 million.
✦ How It Works

We handle the whole process for you

You provide the business info — we do the rest.

1

Complete our intake form

Tell us about your business — name, EIN, entity type, and start date. Takes about 5 minutes.

2

We review & prepare

Tell us about your business — name, EIN, entity type, and start date. Takes about 5 minutes.

3

We submit to the state

We register your business with the appropriate state agencies through official portals.

4

You receive your credentials

We deliver your account numbers and filing details — ready to load into your payroll system.

Ready to get registered?

Flat fee, no surprises. We work inside your existing payroll system.

Launch
$0
to start
State payroll tax checkup
Verify if you're already registered
Free provider recommendation if needed
State Registration
$150
per registration
We register with all required state agencies
Credentials delivered to you
Works with your existing payroll system
Setup Plan
$349
one-time
1 state registration included
Full payroll system configuration
Employee setup support

State Payroll Tax FAQs

Common questions about registering for payroll taxes.

Do I need to register for payroll taxes in California?

Yes, California requires registration for income tax withholding, unemployment insurance, and State Disability Insurance (SDI) through the Employment Development Department (EDD). We register your business with the EDD before your first California payroll runs, keeping you compliant with one of the most stringent state tax systems in the country.

Does an out-of-state LLC need to register for payroll taxes in California?

Yes, if your out-of-state LLC has an employee living or working in California, you are required to register for payroll taxes regardless of where your business is incorporated. We register your LLC with the California Employment Development Department for withholding, unemployment insurance, and State Disability Insurance, ensuring you're fully compliant before payroll begins.

What information do you need to register my business for payroll taxes in California?

We'll need your business name, EIN, entity type, physical address, start date of payroll, and owner information. You provide it once through our intake form and we handle everything from there.

How long does a California payroll tax registration take?

California payroll tax registration processing times vary, ranging from instant online issuance to several weeks depending on the state's workload. We handle withholding, unemployment insurance, and State Disability Insurance registrations with the Employment Development Department and monitor the status of your registration, notifying you as soon as your credentials are issued by the state.