USA State Payroll Rates + Resources: State of California: Obtaining a TIN + Unemployment Insurance
This document outlines the processes and requirements associated with becoming a new employer in the state of California. Specifically, we will cover how to obtain a Payroll Tax Account Number which includes withholding (income) tax, and unemployment and state disability insurance.
Good to Know!
Federal Employer requirements (obtaining a federal identification number, withholding of federal income tax, FICA, and filing of all applicable federal returns (FUTA, 940, 941, and 1099-C) will not be covered below - just the state of California's requirements. Click here for a basic (not all-inclusive) IRS checklist for Starting a New Business.
Registering for Payroll Tax Account Number (Personal Income Tax and Unemployment & State Disability Insurance)
If you operate a business and employ one or more employees, you must register as an employer with the Employment Development Department (EDD) (withholding tax and unemployment tax). If you pay wages over $100 in a calendar quarter, you have 15 days from when you paid to register with the EDD.
Use e-Services for Business to register for your employer payroll tax account number. Click on Enroll.
In most cases, an employer payroll tax account number is issued within a few minutes. e-Services for Business also fulfills the e-file and e-pay mandate and is a fast, easy, and secure way to manage your payroll tax account online 24 hours a day, 7 days a week.
The most common registration form is DE 1 Commercial (for-profit commercial businesses).
For other business types, you can find registration forms at California EDD: Payroll Taxes – Forms and Publications.