1. Establish who employs the workers
Record the employing entity, federal EIN, California work locations and each worker’s duties before registering. A payroll coordinator can prepare information; the actual employer must approve its registrations and authorizations. Calling someone a contractor does not establish their status.
- Confirm entity registration or foreign qualification with the Secretary of State.
- Review classification, wage orders and applicable city or county employment rules with the responsible adviser.
2. Register the employer payroll account
EDD combines administration of unemployment insurance, employment training tax, state disability insurance and personal income tax withholding. Commercial employers generally become subject after paying more than $100 in wages in a calendar quarter; EDD describes registration within 15 days of becoming subject. Other employer categories have different rules.
- Obtain the employer EIN and gather ownership, first-payroll and business information.
- Enroll in e-Services for Business and use New Employer registration.
- Keep the EDD account confirmation; do not submit a duplicate paper registration after completing the online process.
| Form / process | Purpose | Who acts |
|---|---|---|
| DE 1 Commercial Employer Account Registration and Update Form | Registration or account updates when this form is appropriate; online registration is available. | Actual employing business or its authorized representative |
Official sources
3. Separate returns, wage detail and deposits
The quarterly return, employee wage detail and tax payments perform different jobs. California requires electronic employment tax returns, wage reports and payroll tax deposits, subject to EDD’s applicable waiver process. Deposit timing can differ from quarterly reporting.
- Use current EDD instructions to set the deposit schedule and quarterly filing calendar.
- Reconcile employee wage totals, withholding and employer contributions before filing.
- Check nil-reporting and account-closure duties when a short project ends.
| Form / process | Purpose | Who acts |
|---|---|---|
| DE 9 Quarterly Contribution Return and Report of Wages | Quarterly payroll-tax reconciliation and reporting. | Employer or authorized payroll filer |
| DE 9C Quarterly Contribution Return and Report of Wages (Continuation) | Employee wage detail submitted with the quarterly reporting cycle. | Employer or authorized payroll filer |
| DE 88 Payroll Tax Deposit | Payroll-tax payment reference; electronic deposit rules apply. | Employer or authorized payer |
4. Onboard workers and report hires
California withholding information is distinct from the federal W-4. New-hire reporting is also a separate employer duty. EDD generally requires new and rehired employees to be reported within 20 calendar days.
- Obtain the current state withholding certificate from the employee.
- Complete federal work-authorization verification through the actual employer’s process.
- Report hires and rehires through the state’s approved channel and retain the confirmation.
| Form / process | Purpose | Who acts |
|---|---|---|
| DE 4 Employee’s Withholding Allowance Certificate | Employee instructions for California personal income tax withholding. | Employee completes; employer applies and retains |
| DE 34 Report of New Employee(s) | State new-hire reporting, also available through electronic services. | Employer or authorized reporter |
Official sources
5. Check construction and coverage separately
Payroll registration does not replace workers’ compensation or worksite compliance. A California public-works project can add contractor registration, prevailing wages, certified payroll and apprenticeship duties. Determine whether the particular contract is covered before quoting a price or presenting a worked payroll example.
- Confirm workers’ compensation coverage applies to the employer, work and state.
- Review the project’s public-works status and DIR registration requirements.
- Check local wage and leave requirements for the actual worksite.
Before applying this guide
- This is research for a worked website example, not a filing instruction or confirmation that a business or worker is eligible.
- Requirements depend on the actual employer, worksite, worker residence, industry, contract and employment arrangement. Check the linked agency guidance before relying on a form or deadline.
- Online services, form editions and filing rules can change. Checked dates record research, not a guarantee that every rule remains current.
- The wage threshold above concerns commercial employers; it is not a universal California employer test.
- This guide does not determine independent-contractor status, licensing eligibility or the coverage of a particular public-works contract.