Unemployment Insurance (UI)
California Unemployment Insurance is generally funded by employers and provides temporary benefits to eligible workers who become unemployed.
California Payroll Software
Payroll Software for California Businesses
Run payroll for your California employees with less manual work. PayDay gives businesses an easier way to calculate wages, manage deductions, organize payroll information, and keep employee payroll records in one place.
From growing businesses in Los Angeles and San Diego to employers with teams across multiple California locations, PayDay helps simplify the everyday work involved in running payroll.
Payroll in California
California Payroll Has Its Own Set of Challenges
Paying employees in California involves more than calculating hours and issuing paychecks. Employers may also need to account for California payroll taxes, employee withholding, unemployment insurance, disability insurance, wage requirements, new-hire reporting, and local employment rules.
These requirements can become even more time-consuming as your business adds employees, different pay rates, departments, or multiple work locations.
PayDay helps bring your payroll information together so your business can spend less time managing repetitive payroll tasks and more time focusing on your team.
Why California Payroll Can Be More Complex
- California-specific payroll taxes
- State income tax withholding
- State Disability Insurance requirements
- State and local minimum wage rules
- New-hire and rehire reporting
- Different rules based on employee location
- Multi-location payroll management
California Payroll Taxes
California Payroll Taxes Employers Should Know
California's Employment Development Department administers four primary state payroll taxes. Two are generally employer-paid taxes, while two are withheld from employee wages.
Understanding how these taxes apply to your workforce is an important part of running payroll for employees in California.
Employment Training Tax (ETT)
Employment Training Tax is an employer-paid California payroll tax that helps fund workforce training programs within the state.
State Disability Insurance (SDI)
California State Disability Insurance is generally withheld from employee wages and helps fund disability and Paid Family Leave benefits.
Personal Income Tax (PIT)
California Personal Income Tax may be withheld from employee wages according to the employee's withholding information and applicable state withholding schedules.
Need California Payroll Tax Rates and Filing Details?
This page focuses on payroll software for California businesses. Visit our California Payroll Taxes guide for detailed information about tax rates, taxable wage bases, withholding, filing requirements, deadlines, and employer responsibilities.
2026 California Payroll Information
Payroll Requirements California Employers Should Keep in Mind
Payroll rules can change over time, making it important for employers to keep current state and local requirements in mind when paying employees.
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California Minimum Wage
California's statewide minimum wage is $16.90 per hour effective January 1, 2026.
Certain industries and employees may be subject to different wage requirements, and some California cities and counties have minimum wage rates that are higher than the statewide rate.
Employers with employees in multiple California locations should check the wage rules applicable to each employee's work location.
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California New-Hire Reporting
California employers generally must report newly hired and qualifying rehired employees who work in California to the state's New Employee Registry.
The report is generally due within 20 calendar days of the employee's start-of-work date.
Maintaining accurate employee information as part of your payroll process can make these reporting responsibilities easier to manage.
UI
California UI and ETT
Unemployment Insurance and Employment Training Tax are generally employer-paid California payroll taxes.
Applicable rates and taxable wage limits can change, so employers should use their current EDD information and official California guidance when determining their obligations.
CA
California SDI and PIT
California employers may also need to withhold State Disability Insurance and Personal Income Tax from employee wages.
Applicable withholding should be determined using current state requirements and the employee information relevant to the payroll period.
PayDay Payroll Software
Make California Payroll Easier to Manage
PayDay is designed to simplify the recurring work involved in paying employees. Keep the information you need for payroll organized in one system instead of relying on disconnected spreadsheets and manual calculations.
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Employee Payroll Management
Keep employee compensation and payroll information organized so it is easier to prepare and review each payroll.
02
Payroll Calculations
Simplify the process of calculating employee earnings based on the payroll information entered for each pay period.
03
Different Pay Rates
Keep payroll organized for employees whose compensation may vary based on role, work, location, or other payroll factors.
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Payroll Deductions
Manage applicable employee payroll deductions within your payroll workflow instead of tracking everything separately.
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Payroll Records
Keep payroll history and employee payroll information organized so your team can review previous payroll activity when needed.
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Growing Teams
Manage payroll as your business adds employees, departments, pay rates, and additional work locations.
Built for Growing Businesses
Manage California Employees From One Payroll System
A company with five employees may have very different payroll needs from a company with 50 or 500. As your workforce grows, maintaining payroll information manually can become increasingly difficult.
PayDay helps you keep employee payroll information organized whether your team works from one California location or across multiple cities.
Businesses operating across state lines can also use a centralized payroll process to keep employee information organized while accounting for the requirements applicable to each workforce.
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San Diego
San Francisco
San Jose
Sacramento
Fresno
Oakland
Long Beach
California Business Payroll
PayDay Can Help You Keep Payroll Organized As You:
- Add new employees
- Manage hourly and salaried workers
- Handle different employee pay rates
- Track payroll deductions
- Add departments or teams
- Expand to new California locations
- Hire employees in additional states
- Review previous payroll records
Simple Payroll Process
Run Your California Payroll in Three Simple Steps
A clear payroll workflow can help reduce repetitive administrative work and make each pay period easier to manage.
Add Your Employees
Enter the employee and compensation information required for your payroll process, including applicable earnings and deductions.
Prepare and Review Payroll
Enter the information for the pay period and review employee earnings, deductions, and payroll details before completing the payroll.
Complete Payroll
Finish your payroll process and maintain an organized record that can be referenced when reviewing previous payroll activity.
Multi-State Payroll
Have Employees Outside California?
Payroll requirements can differ significantly from one state to another. A business headquartered in California may eventually hire remote employees in Texas, Florida, New York, or other states.
As your workforce expands, keeping employee and payroll information organized by location becomes increasingly important.
PayDay gives growing businesses a centralized payroll environment so payroll teams do not have to build a completely separate administrative process every time the workforce expands.
Explore Payroll Software by State →Multi-State Payroll May Involve:
- Different state income tax rules
- Different unemployment programs
- Different taxable wage bases
- State-specific employee reporting
- Different wage and hour requirements
- Local payroll requirements
Why PayDay
Spend Less Time Managing Payroll Manually
Payroll software should make your job easier—not add another complicated system for your team to manage.
PayDay is designed to help businesses create a more organized payroll workflow as their workforce grows.
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Simple Payroll Workflow
Keep the steps involved in preparing payroll clear and manageable for your payroll team.
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Designed to Scale
Maintain a more organized payroll process as your company adds employees, teams, and locations.
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One Place for Payroll
Reduce your reliance on separate spreadsheets and disconnected payroll records by managing payroll information centrally.
California Payroll Resources
Learn More About Running Payroll in California
Explore our payroll resources for additional information about California payroll taxes and payroll management.
California Payroll Taxes
Learn more about California payroll tax rates, UI, ETT, SDI, PIT, taxable wages, filing requirements, and employer responsibilities.
Read the California Payroll Tax Guide →Payroll Software
Explore PayDay payroll software and see how an organized payroll system can simplify recurring payroll work.
Explore PayDay Payroll Software →Payroll Software by State
Employ people in multiple states? Explore state-specific payroll information and software pages for employers across the United States.
View Payroll Software by State →
California Payroll FAQs
Frequently Asked Questions About California Payroll Software
What is California payroll software?
California payroll software helps businesses organize the process of paying employees who work in California. Depending on the software and plan selected, payroll systems can help manage employee earnings, deductions, payroll records, tax information, and other recurring payroll tasks.
Why should a California business use payroll software?
California employers may need to manage state payroll taxes, employee withholding, wage requirements, reporting obligations, and other payroll information. Payroll software can reduce the amount of manual work required to keep these payroll processes organized.
What payroll taxes do California employers need to know about?
California has four primary state payroll taxes administered by the Employment Development Department: Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability Insurance (SDI), and Personal Income Tax (PIT). UI and ETT are generally employer-paid, while SDI and PIT are generally withheld from employee wages.
What is the California minimum wage in 2026?
California's statewide minimum wage is $16.90 per hour effective January 1, 2026. Some industries, cities, and counties may have higher minimum wage requirements, so employers should verify the rules that apply to each employee's work location.
Does California require employers to report new hires?
Yes. California employers generally must report newly hired and qualifying rehired employees who work in California to the New Employee Registry within 20 calendar days of their start-of-work date.
Does California have state income tax withholding?
Yes. California Personal Income Tax may need to be withheld from employee wages based on applicable state withholding requirements and employee information.
Can payroll software support employees in California and other states?
Payroll software can be used by businesses with employees in multiple states, provided the selected software supports the payroll requirements relevant to those states. Multi-state employers should account for the rules that apply where each employee works.
Can payroll software file California payroll taxes automatically?
Some full-service payroll products provide payroll tax calculation, filing, and payment services. The exact services available depend on the payroll provider and plan selected. Review PayDay's current payroll tax features to determine which services are included with your account.
Is PayDay suitable for small businesses in California?
PayDay is designed to simplify recurring payroll management for businesses that want a more organized way to manage employee payroll information as their workforce grows.
PayDay Payroll Software
Make Your California Payroll Day Easier
Bring employee payroll information together, reduce manual payroll work, and create a simpler payroll process for your California business with PayDay.
Get Started With PayDayDisclaimer: The information on this page is provided for general informational purposes only and should not be considered legal, payroll, or tax advice. Payroll tax rates, wage requirements, filing rules, and other federal, California state, and local requirements can change. Employers should verify current requirements with the California Employment Development Department, California Department of Industrial Relations, Internal Revenue Service, and other applicable government agencies.
Last reviewed: August 2026.