The information below will guide you through the following:
- Understanding if you should be calculating California taxes
- Deciding which California taxes your company should register for
- Understanding what forms OnPay files
- Registering with the California Tax agencies
- Completing the forms necessary for OnPay to be able to file/pay on your behalf
- Entering necessary information into OnPay
Do you need to register for California Taxes?
- Do you have a business and/or employees residing in the State of California?
- Have you processed payroll in OnPay and have received warnings stating we are missing tax information?
- Have you received an email from an OnPay Tax Agent requesting certain California information?
If you answered yes to any of the questions above, you should continue with the registration and setup steps below.
Which California Agencies should I register for?
California Employment Development Department: All required payroll taxes filed by OnPay are submitted to the California Employment Development Department (EDD), this includes Withholding Tax, Unemployment Tax, Employment Training Tax, State Disability Insurance, and Personal Income Tax. Your Business will need to be registered with the EDD by the date you expect to become liable for payroll taxes, which is typically the first day you will pay wages. OnPay will only begin filing your California taxes once you run a payroll with California wages.
- You will need to register with this department if you have employees that both live and work in California, or for any employees that calculate California withholding taxes regardless of there they live/work. If your business is located outside of California, but your employees work or live in California you will likely need to register with this agency.
- You will need to register with this department if you have employees that work in California. If your business is located out of the state, but some of your employees primary work location is in California, you will likely need to register with this agency.
- OnPay will use both the home address for each employee, plus the worksite assigned to each employee to decide which taxes should be calculated. OnPay uses reciprocity agreements between states to help decide where a certain employee's taxes are calculated according to those addresses.
You must have an active EDD registration for OnPay to file and pay your taxes.
Employment Development Department (EDD): 1-(888)-745-3886
- Click here for information on how to register your California business with the EDD, once you click the link, choose Enroll for a username and password
- Should you have questions about how to register your business, or how to answer some of the questions asked during the application process, please contact the EDD at the number above.
Tax Forms We File
- Form DE88: Semi-weekly/Monthly Payment File
- Form DE9: Quarterly Contribution Return and Report of Wages
- Form DE9C: Quarterly Contribution Return and Report of Wages (Continuation)
- Form DE88: Quarterly Payment File
Where do I enter the information in OnPay?
If you already have your tax information, or if you have obtained it using the steps above, please update the tax information in OnPay:
- Login to OnPay
- Select the Settings menu icon
- Select Payroll Tax
- View/Update your Withholding Tax ID, Withholding Tax Deposit Schedule, Unemployment Tax ID, Unemployment Rate (as a %), and any local tax IDs as required.
Update ONPAY: Enter your EDD Number for "California State Unemployment Tax, California Employment Training Tax, California SDI, and California State Tax. You also need to enter your Unemployment Tax rate and Employment Training Tax Rate (.1% unless your Unemployment Tax rate is 6.2%, then you enter 0% for ETT).
Tax Rates: If you have your EDD Tax ID (Ex. of Format: 123-4567-8) then you can click here to obtain your current years tax rate (The new employer rate in California is 3.4%). You will be responsible for entering in your new tax rate from year to year. Failing to enter that new tax rate into OnPay each year could result in under or overpayments to the EDD. Any penalties from underpayments due to your new rate not being entered into ONPAY will be the responsibility of the client.
Power of Attorney
What we need from you as an California Employer:
Please CLICK HERE for the California Power of Attorney forms and information on how to complete the forms. This will allow us to speak on your behalf, file, and make payments with the State of California. Please email the completed Power of Attorney forms to firstname.lastname@example.org.
Give us the Info
Once you have received all of this information from the EDD please forward it on to us at email@example.com
- EDD ID: Your EDD number will be an eight digit account number, format XXX-XXXX-X. If you already have an EDD number you can find it on form DE-9 or DE-9c.
- CA Unemployment Rate (UI)
- CA Employment Training Tax Rate (ETT)
Please reference each section below to identify any other information or steps required for OnPay to complete tax payments and filings on your behalf. If you are a new employer in the State of California, the following information can be very useful in helping get your company set up and registered.
**If you have liabilities or employees for more than one state please follow the instructions found in the knowledge base for each state.**