State guide
How to Register for California Payroll Taxes
Let a dedicated tax manager register your business with EDD and follow up until your account number arrives, or use the step-by-step guide below to do it yourself.
Last updated:
At a glance
1 state agency: the EDD
1 eight-digit account number
Register within 15 days
Up to ten business days online
Done for you
Rather not deal with EDD yourself?
Skip the paperwork. Your dedicated PayAdvisors tax manager registers you with the state and gets your tax IDs for you. In California that means your EDD payroll account, followed up until the number is issued.
- One named person handles your registration from start to finish
- We complete the e-Services for Business registration with you
- We follow up with EDD and send your account number ready for first payroll
- You get back to running the business
Hands-on help from a real person you can call or email. Use it on its own or alongside managed payroll.
Quick answer
California payroll tax registration in short
In California you register with one agency for state payroll taxes: the Employment Development Department (EDD). A single EDD registration gives you an eight-digit employer payroll tax account number that covers all four state payroll taxes: Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability Insurance (SDI) and Personal Income Tax (PIT) withholding.
You must register within 15 days after you first pay more than $100 in wages in a calendar quarter. You register online through EDD's e-Services for Business, and EDD says most requests take up to ten business days.
Who registers
Who needs to register in California
You become a "subject employer" in California, and must register with EDD within 15 days, when you hire employees and pay more than $100 in wages in a calendar quarter. Wages include checks, cash, electronic and payment app payments, and the cash value of noncash pay such as meals and lodging.
- Household employers (someone working in or around your home for your household) register after paying $750 or more in cash wages in a calendar quarter. If you run a business from your home, such as a daycare, you register as a commercial employer instead.
- Corporate officers count as employees. EDD's guide lists a corporate officer as a worker covered by law. For an S corporation owner who takes a salary, that usually means the company registers once officer wages pass the threshold.
- Some family employment is treated differently. When an individual owner employs a spouse, registered domestic partner, parent or minor child, those wages are not subject to UI, ETT or SDI, but they are subject to PIT withholding. You still register.
- People working in more than one state. EDD's multistate employment rules (Information Sheet DE 231D) decide which state covers a worker whose services are split across states. See registration in other states.
Step by step
How to register with EDD
California does not split withholding and unemployment between two agencies. One online application covers both.
Step 1. Enroll in e-Services for Business
- Go to EDD's e-Services for Business and select Enroll.
- Enter the required details, choose your security questions and submit the enrollment summary.
- Open the verification email and confirm it within 24 hours, or you have to restart enrollment.
- Log in, enter the emailed verification code and set up a second login method (text, phone call or email).
Owners, officers, partners, executors, receivers and trustees enroll as the employer. A payroll firm or other representative enrolls separately as a representative.
Step 2. Register for your employer payroll tax account number
- Log in to e-Services for Business and select New Employer, then Next.
- Review the New Registration screen and choose the option to register for an Employer Payroll Tax Account Number.
- Complete the online application and submit it.
This one registration covers withholding (PIT and SDI) and unemployment (UI and ETT).
Paper option: if you cannot register online, most businesses use the Commercial Employer Account Registration and Update Form (DE 1), sent by mail to EDD Account Services Group, MIC 28, PO Box 826880, Sacramento, CA 94280-0001, or by fax to 1-916-654-9211. Nonprofits, household employers, agricultural employers and PIT-only employers have their own versions (DE 1NP, DE 1HW, DE 1AG, DE 1P). Do not file a paper form if you already registered online.
Step 3. Local taxes
EDD registration covers California's state payroll taxes. Check with the city where you operate about any local business registration or taxes.
The shortcut
Four payroll taxes, one account, plenty of follow-up
Every step above is manageable. Together they mean an e-Services account, a long application and waiting on EDD before your first payroll.
On your own
- e-Services setup and the full EDD application on your own
- Officer wage and 15-day timing rules to track
- Following up with EDD yourself
With your PayAdvisors tax manager
- Your tax manager files with you
- EDD questions and delays handled for you
- Your account number delivered, ready for payroll
Hand it to your tax manager.
Checklist
What you need before you start
EDD lists these items for a new registration:
- Names and Social Security numbers of every responsible party: owners, co-owners, general partners, officers, members, partners, principal officers or administrators
- Business physical address, mailing address, phone and email
- A contact person's name, address, phone and email, if different from the business
- Your nine-digit Federal Employer Identification Number (FEIN). EDD says including it helps your UI payments get credited properly on your federal Form 940
- Any previous EDD employer payroll tax account number
- The date of your first payroll when wages passed $100
- For corporations, LLCs, LLPs and LPs: your exact legal name as registered with the California Secretary of State, and possibly your Secretary of State ID number
- An industry description (the product or service that brings in the most revenue) and any DBA name
Timing
How long California registration takes
Plan your registration around your first payday. If your first California paycheck is less than two weeks away, start now.
| Item | Timing |
|---|---|
| Deadline to register | Within 15 days of paying more than $100 in wages in a calendar quarter |
| Email verification during enrollment | Within 24 hours, or start over |
| Online registration | EDD says most requests take up to ten business days. Complex requests, tax exemptions or special coverage can take longer, and EDD may contact you for more information. |
| Mail or fax registration (DE 1) | EDD says 10 to 14 days, longer for exemptions or special coverage |
| New-hire report | Within 20 days of each new employee's first day of work |
| Annual rate notice (DE 2088) | Mailed in December, dated December 31, with 60 days to protest UI items |
Rates
2026 California payroll tax rates for new employers
Your actual rates arrive on your rate notice (DE 2088). If you bought an existing business, you may be able to keep the previous owner's UI rate.
| Tax | Who pays | 2026 rate | Wage limit |
|---|---|---|---|
| Unemployment Insurance (UI) | Employer | 3.4% for new employers, for two to three years (the 2026 schedule runs 1.5% to 6.2% for rated employers) | $7,000 per employee per year |
| Employment Training Tax (ETT) | Employer | 0.1% | $7,000 per employee per year |
| State Disability Insurance (SDI), which includes Paid Family Leave | Withheld from employee pay | 1.3% | None: all wages are subject to SDI since January 1, 2024 |
| Personal Income Tax (PIT) | Withheld from employee pay | Per EDD's 2026 withholding schedules and the employee's DE 4 | Not applicable |
Gotchas
Common California registration mistakes
These come up again and again with new California employers.
- Waiting for the quarter to end. The 15-day clock starts when wages pass $100 in a quarter, not at quarter end.
- Looking for a separate state withholding account. In California, PIT withholding is part of the same EDD account as UI, ETT and SDI.
- Capping SDI. SDI no longer has a wage ceiling. Every dollar of wages is subject to it since January 1, 2024.
- Filing on paper. All employers must file returns and wage reports and make deposits electronically. EDD charges $50 per paper return, $20 per paper wage item and 15% of a paper deposit.
- Skipping a quarter with no payroll. Active employers file a DE 9 every quarter, even when no wages were paid.
- Forgetting what sits outside EDD. Workers' compensation insurance is required even with one employee (DIR). If you do not offer a retirement plan, check whether you need to register with CalSavers, the state retirement program.
After you register
Your first 30 days after registering
Registration is the start. These obligations follow right after.
- New hires: report each new employee to EDD within 20 days of their first day (DE 34). Report independent contractors you pay $600 or more within 20 days (DE 542).
- Withholding forms: each employee completes a federal W-4 and California DE 4. Without a valid DE 4, you withhold as single with zero allowances.
- Notices: post the notice EDD sends you after registration (DE 1857A for most employers), and give employees the DE 2320, DE 2511 and DE 2515 pamphlets.
- Deposits: UI and ETT are due quarterly. SDI and PIT deposit timing follows your federal deposit schedule and how much PIT you withhold. Late payments carry a 15% penalty plus interest.
- Quarterly returns: file the DE 9 and DE 9C each quarter. For the fourth quarter of 2026, the return is due January 1, 2027 and delinquent if not filed by February 1, 2027.
- Closing later: if you stop having California employees, file a final DE 88, DE 9 and DE 9C within 10 days of closing and close the account in e-Services for Business.
Official links
Official California links
Go straight to the source for forms, filing and help.
- EDD Employer Payroll Taxes, Steps 1 to 7
- EDD e-Services for Business
- California Employer's Guide (DE 44), 2026
- EDD rates and withholding schedules
- EDD required notices and pamphlets
- EDD Taxpayer Assistance Center: 1-888-745-3886, 8 a.m. to 5 p.m. Pacific, Monday through Friday, except state holidays (contact page)
- Workers' compensation for employers (DIR)
- CalSavers for employers
California registration questions
Do I need a separate California withholding account?
No. California handles income tax withholding through EDD, on the same employer payroll tax account as UI, ETT and SDI.
How long does EDD take to issue my account number?
EDD says most online requests take up to ten business days, and complex requests or accounts with exemptions can take longer. Paper registrations take 10 to 14 days.
What does a California EDD account number look like?
It is eight digits, written like 000-0000-0. EDD also calls it a State Employer Identification Number (SEIN) or State ID number.
I am the only person on payroll in my S corporation. Do I register?
Usually yes. EDD treats a corporate officer as an employee, so once officer wages pass $100 in a quarter, the company registers within 15 days. A dedicated tax manager can handle it for you as part of our S corp payroll package.
What is the 2026 new-employer unemployment rate in California?
3.4%, on the first $7,000 of each employee's wages, for your first two to three years.
Do I still file if I had no payroll this quarter?
Yes. As long as your account is active, you file a DE 9 each quarter showing no wages.
Can someone register for me?
Yes. EDD lets representatives such as payroll firms enroll in e-Services for Business on an employer's behalf. That is what our team does for clients.
How is registration priced?
Most states issue two IDs, one for withholding and one for unemployment insurance. Pricing depends on the states and accounts involved. We'll quote it on a quick consultation.
Is this tax advice?
No. This page is a general guide to California's registration process, based on EDD's published guidance. For advice on your own situation, talk to your CPA or tax advisor.
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Next step
Get your California account registered
A dedicated tax manager files your EDD registration, follows up until the account number arrives and hands it over ready for payroll. Tell us your first payroll date and we take it from there.
About this guide
Last verified and sources
Last verified October 26, 2026 against EDD, DIR and CalSavers sources. This guide is general information, not tax or legal advice.
Related
- State payroll tax registration (all states)
- Arizona payroll tax registration guide
- Texas payroll tax registration guide
- Florida payroll tax registration guide
- New York payroll tax registration guide
- Georgia payroll tax registration guide
- North Carolina payroll tax registration guide
- Illinois payroll tax registration guide
- Washington payroll tax registration guide
- Colorado payroll tax registration guide
- Ohio payroll tax registration guide
- Pennsylvania payroll tax registration guide
- New Jersey payroll tax registration guide
- Virginia payroll tax registration guide
- Michigan payroll tax registration guide
- Massachusetts payroll tax registration guide
- Tennessee payroll tax registration guide
- Indiana payroll tax registration guide
- Missouri payroll tax registration guide
- Maryland payroll tax registration guide
- Oregon payroll tax registration guide
- Utah payroll tax registration guide
- Nevada payroll tax registration guide
- Wisconsin payroll tax registration guide
- Alabama payroll tax registration guide
- Minnesota payroll tax registration guide
- South Carolina payroll tax registration guide
- Louisiana payroll tax registration guide
- Kentucky payroll tax registration guide
- Oklahoma payroll tax registration guide
- Connecticut payroll tax registration guide
- Iowa payroll tax registration guide
- Kansas payroll tax registration guide
- Arkansas payroll tax registration guide
- New Mexico payroll tax registration guide
- Hawaii payroll tax registration guide
- Payroll setup for new businesses
- Payroll processing
- Payroll tax filing and compliance
- S corp payroll
- S corp payroll setup checklist
Sources
- EDD, Step 1: Register as an Employer
- EDD, Step 2: Get Your Information in Order
- EDD, Step 3: Register for a Payroll Tax Account
- EDD, Step 4: Report Employees and Independent Contractors
- EDD, Step 5: Withhold and Pay Payroll Taxes
- EDD, Step 6: File Tax Returns and Wage Reports
- EDD, Step 7: Provide Required Notices
- EDD, Contribution Rates, Withholding Schedules, and Meals and Lodging Values
- EDD, California Employer's Guide 2026 (DE 44)
- EDD, Enroll in e-Services for Business as an Employer
- California DIR, Division of Workers' Compensation: employer information
- CalSavers: employers
- EDD, e-Services for Business
- EDD, e-Services for Business FAQs
- EDD, Contact Us About Payroll Taxes