California Payroll Tax Registration

Everything Employers Need to Know

By US TAX BAY

Planning to hire employees in California? Before you issue your first paycheck, you’ll need to complete California payroll tax registration with the appropriate agencies. In the Golden State, this process includes registering for both employer withholding tax and unemployment insurance tax through the California Employment Development Department (EDD).

At US TAX BAY, we take the hassle out of tax compliance by handling registrations for you—so you can hire quickly and confidently.

What Are California's Payroll Tax Requirements?

Employers in California must register for:

• State Income Tax Withholding (to deduct and remit state taxes from employee wages)

• State Unemployment Insurance (SUI) (to support temporary income for workers who lose jobs through no fault of their own)

  
  

Both taxes are managed through the same state agency and use the same form for registration.

Step 1: Register for California Employer

Withholding Tax

Agency:

California Employment Development Department (EDD)

Form Required:

Form DE-1 – Commercial Employer Account Registration and Update

Who Needs to Register?

You must register if you:

• Pay wages of $100 or more in a calendar quarter

• Hire employees (full-time or part-time) who work in California

• Are expanding business operations into California from another state

How to Register:

• Online: Visit the EDD’s e-Services for Business portal and complete Form DE-1 online.

• By Mail: Download and fill out the DE-1 form and send it to the address provided in the instructions.

Once your application is processed, you’ll receive an EDD Employer Account Number, which is required for tax filings and wage reporting.

Step 2: Register for California Unemployment Insurance (SUI) Tax

Agency:

California Employment Development Department (EDD)

Form Required:

Same as above – Form DE-1

Filing Method:

Online or mail-in, through the same process as withholding tax.

Who Must Register?

Any business with employees working in California is required to register and pay into the California Unemployment Insurance system.

What Happens If You Don’t Register?

Failure to register properly may result in:

• Penalties and interest charges

• Delayed payroll processing

• Audits and compliance issues

• Inability to file required tax returns

To avoid unnecessary fines and setbacks, it's best to register before or immediately after hiring employees.

Why Choose US TAX BAY?

Navigating California’s complex tax system can be confusing—especially when you’re juggling other business responsibilities. US TAX BAY handles the entire process for you, ensuring fast and compliant registration.

Our services include:

✅ Employer withholding tax setup

✅ SUI account registration

✅ EIN acquisition and support

✅ Multi-state payroll registration

✅ Ongoing compliance guidance

Start Hiring in California with Confidence

Let US TAX BAY manage your California payroll tax registration so you can onboard employees without delays or compliance worries.

👉 Get in touch with us 

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