California Business Portal

Who is considered an 'employer' for CA state payroll tax purposes?

There are two types of employers: those who run a business and those who hire domestic services. Employers who run a business can be a person or a legal entity and include:
  • Sole Proprietors
  • Partnerships
  • Joint Ventures
  • Corporations
  • Limited Liability Companies
  • Estates
  • Associations and Trusts
  • Nonprofit and Charitable Organizations
  • Public Entities, Including State and Federal Agencies
  • Other Organizations
An employer becomes subject to state employment taxes upon paying a worker(s) more than $100 in a calendar quarter and must register with the Employment Development Department (EDD) within 15 days.

For more information, visit the EDD webpage entitled "Am I Required to Register as an Employer" (http://www.edd.ca.gov/Payroll_Taxes/Am_I_Required_to_Register_as_an_Employer.htm), refer to the Information Sheet: Employment (DE 231), or call EDD's toll-free number 1-888-745-3886.

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