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California payroll taxes: UI, ETT, SDI and PIT
California payroll taxes do not all come from the same pocket or follow the same deposit pattern. Separate employer costs from employee withholding before reconciling payroll to payments and quarterly reports.
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General information, not legal or tax advice.
Recognize the employer’s unemployment contribution
UI is paid by the employer on the first $7,000 in subject wages per employee. EDD identifies the 2026 schedule as F+, with rates from 1.5% to 6.2%. New employers are assigned 3.4% for two to three years. Check the business’s assigned rate against its EDD notice.
Sources: EDD - What Are State Payroll Taxes?; EDD - Rates and Withholding
Keep training tax distinct from UI
ETT is also employer-paid. For 2026 the rate is 0.1% on the first $7,000 per employee per calendar year. Keep separate liability detail so the quarterly reconciliation can show how each employer contribution was calculated and paid.
Sources: EDD - Rates and Withholding
Review employee disability withholding
SDI is withheld from employee wages. EDD’s 2026 rate is 1.3%, and all wages have been subject to SDI contributions since January 1, 2024. Avoid carrying an old wage-cap setting into the current payroll setup.
Sources: EDD - Rates and Withholding
Use employee elections for income tax withholding
California PIT comes from employee pay and has no taxable wage limit or maximum tax. Withholding depends on DE 4 information and the applicable withholding method. Keep the election documents available when investigating a payroll setup question.
Sources: EDD - What Are State Payroll Taxes?
Reconcile deposits before the quarterly return
UI and ETT are due quarterly; SDI and PIT can require more frequent deposits. EDD requires electronic returns, wage reports and deposits from employers. Maintain a payment history by tax and period so filing a quarterly report is not confused with completing every deposit obligation.
Sources: EDD - Required Filings and Due Dates; EDD - e-File and e-Pay Mandate
Sources: state payroll contributions
Keep payroll liabilities and payments aligned
Tidwell helps maintain payroll records, prepare reporting and reconcile the amounts paid, with your CPA involved in tax questions.