Employer payroll taxes
What California employers owe EDD, when to register, and the reports and deadlines that keep you out of penalty trouble.
Statewide guides
California Employer Payroll Tax Calculator (2026)
Calculate 2026 California employer payroll taxes for your team: UI and ETT on the first $7,000 of each employee's wages, plus 1.3% SDI withholding with no cap.
Employer payroll taxesCalifornia Employer Payroll Taxes: UI, ETT, SDI and PIT
What California employers owe EDD in 2026: when to register, UI and ETT on the first $7,000, SDI withholding, new-hire reports and quarterly filings.
Employer payroll taxes at a glance
These guides explain what California employers owe the Employment Development Department (EDD): when to register, the UI and ETT taxes you pay, the SDI and income tax you withhold, and the reports that keep you out of penalty trouble. We're an independent guide, so always register and file with EDD itself.
| Item | Rule | Guide link |
|---|---|---|
| Registering with EDD | Within 15 calendar days of paying more than $100 in wages in a calendar quarter | Employer payroll tax guide |
| UI and ETT (2026) | 3.4% UI for new employers and 0.1% ETT, both on the first $7,000 of each employee's wages | Payroll tax calculator |
| SDI withholding (2026) | 1.3% of all wages, with no cap since 2024 | Payroll tax calculator |
| New-hire report (DE 34) | Within 20 calendar days of the start date | Employer payroll tax guide |
| Quarterly reports (DE 9 and DE 9C) | Due January 1, April 1, July 1 and October 1, late after the last day of the following month | Employer payroll tax guide |
Where to start
- If you need to know when to register, which four taxes apply or which forms are due each quarter, read California employer payroll taxes: UI, ETT, SDI and PIT.
- If you need an estimate of what you'll owe EDD for your team this year, use the California employer payroll tax calculator.
Frequently asked questions
What payroll taxes do California employers pay?
You pay Unemployment Insurance (UI) and the Employment Training Tax (ETT), both on the first $7,000 of each employee's wages. In 2026, new employers pay 3.4% UI, usually for two to three years, and employers pay 0.1% ETT.
You also withhold State Disability Insurance (SDI) and state income tax from employees' pay and send them to EDD.
Do employers pay SDI in California?
No. SDI is withheld from employees' wages, not paid by the employer. Your job is to withhold the 1.3% and send it to EDD with your other payroll taxes. Since there's no wage cap, it applies to every dollar an employee earns.
Do I have to file a DE 9 if I had no payroll?
Yes. You must file DE 9 and DE 9C for every quarter, even one with no payroll. Missing a zero-payroll filing is a common mistake.