Payroll
New Employer Payroll Setup: Step-by-Step Checklist for 2026
Get your EIN, register with EDD, choose payroll frequency, and run your first payroll — the complete checklist.
California has some of the most complex employer payroll requirements in the country — SDI, ETT, progressive income tax up to 13.3%, and strict wage laws. Get plain-English guides written for CA small business owners, not accountants.
| Tax / Obligation | Rate / Threshold | Who Pays |
|---|---|---|
| Federal Income Tax Withholding | Bracket-based (W-4) | Employer withholds |
| California PIT Withholding | 1% – 13.3% | Employer withholds |
| CA SDI / PFL (2026) | 1.1% (no wage base cap) | Employee pays |
| CA SUI (new employer) | 3.4% on first $7,000 | Employer pays |
| CA ETT | 0.1% on first $7,000 | Employer pays |
| CA Minimum Wage (2026) | $16.50/hr statewide | All employers |
Source: edd.ca.gov • Updated January 2026
Featured Guide
Gusto, QuickBooks Payroll, Paychex, and ADP — compared honestly. Who each product is right for, where each falls short, and what to ask before you sign anything.
Get your EIN, register with EDD, choose payroll frequency, and run your first payroll — the complete checklist.
California OT is stricter than federal — 1.5x after 8 hrs/day, 2x after 12 hrs. Here's everything you need to know.
CA statewide rate, fast food and healthcare worker rates, plus local rates for LA, SF, and more.
All CA employer taxes — SUI, ETT, SDI, PIT withholding. Rates, wage bases, and filing schedules explained.
Get your EIN, register with EDD, choose payroll frequency, and run your first payroll — the complete checklist.
California OT is stricter than federal — 1.5x after 8 hrs/day, 2x after 12 hrs. Here's everything you need to know.
CA statewide rate, fast food and healthcare worker rates, plus local rates for LA, SF, and more.
California OT is stricter than federal — 1.5x after 8 hrs/day, 2x after 12 hrs. Here's everything you need to know.
CA statewide rate, fast food and healthcare worker rates, plus local rates for LA, SF, and more.
All CA employer taxes — SUI, ETT, SDI, PIT withholding. Rates, wage bases, and filing schedules explained.
Get your EIN, register with EDD, choose payroll frequency, and run your first payroll — the complete checklist.
California OT is stricter than federal — 1.5x after 8 hrs/day, 2x after 12 hrs. Here's everything you need to know.
CA statewide rate, fast food and healthcare worker rates, plus local rates for LA, SF, and more.
California's ABC test is stricter than the IRS test. Misclassification penalties are severe. Here's how to get it right.
Gusto vs Paychex vs QuickBooks vs ADP — detailed comparison for California small businesses.
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This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of the date noted above and may not reflect recent changes in federal or California state law. Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with California law before making payroll or compliance decisions for your business.