| The California State Agency that oversees the | | | | employee's pay stub:Employee's Name |
| collection and reporting of State income taxes | | | | Pay rate |
| deducted from payroll checks is:Employment | | | | Gross and net earnings |
| Development Department | | | | Amount and purpose of deductions |
| 800 Capitol Mall | | | | Hours worked or work done if piece |
| Sacramento, CA 95814 | | | | workCalifornia State Wage and Hour Law |
| 888-745-3886 | | | | provisions concerning pay stub information detail |
| requires that you use California form "DE 4A-4, | | | | the following information must be on the |
| Employee's Withholding Allowance Certificate" | | | | paystub.Gross and net earnings |
| instead of a Federal W-4 Form for California | | | | Hours worked at each hourly rate for hourly |
| State Income Tax Withholding.Not all states allow | | | | workers |
| salary reductions made under Section 125 | | | | Piece rate and number of pieces |
| cafeteria plans or 401(k) to be treated in the | | | | Deductions |
| same manner as the IRS code allows. In California | | | | Pay period dates |
| cafeteria plans: are not taxable for income tax | | | | Employee's name and social security number |
| calculation; are not taxable for unemployment | | | | Employer's name and addressIn California |
| insurance purposes. 401(k) plan deferrals are: not | | | | employees must be paid at least semimonthly, |
| taxable for income taxes; are taxable for | | | | monthly for FLSA exempt employees. The lag |
| unemployment purposes.In California supplemental | | | | time between earned and paid is governed by |
| wages are taxed at a 6% flat rate, 9.3% for | | | | statute in California. Wages earned from the 1st |
| stock options and bonuses.You are not required | | | | through the 15th of the month must be paid by |
| to file California State W-2s.The California State | | | | the 26th. Wages earned from the 16th through |
| Unemployment Insurance Agency is:Employment | | | | the end of the month must be paid by the 10th |
| Development Department | | | | of the following month. Exempt employees by the |
| P.O. Box 826880 - MIC 94 | | | | 26th of the month for the entire month (a safe |
| Sacramento, CA 94280-0001 | | | | harbor is payment within 7 days after the pay |
| 888-745-3886 | | | | period.)California payroll law requires that |
| State of California taxable wage base for | | | | involuntarily terminated employees must be paid |
| unemployment purposes is wages up to | | | | their final pay immediately; within 72 hours for |
| $7000.00.California requires Magnetic media | | | | seasonal employees; within 24 hours for certain |
| reporting of quarterly wage reporting if the | | | | motion picture (by next payday if laid off) and |
| employer has at least 250 employees that they | | | | certain oil drilling employees. Voluntarily terminated |
| are reporting that quarter.Unemployment records | | | | employees must be paid their final pay within 72 |
| must be retained in California for a minimum | | | | hours; immediately if 72 hours' notice of quit is |
| period of four years. This information generally | | | | given; strikers on next regular payday.Deceased |
| includes: name; social security number; dates of | | | | employee's wages to a maximum of $5,000.00 |
| hire, rehire and termination; wages by period; | | | | must be paid to the surviving spouse or |
| payroll pay periods and pay dates; date and | | | | conservator when an Affidavit of right and proof |
| circumstances of termination.The California State | | | | of identity are presented.Escheat laws in California |
| Agency charged with enforcing the state wage | | | | require that unclaimed wages be paid over to the |
| and hour laws is:The Department of Industrial | | | | state after one year.The employer is further |
| Relations | | | | required in California to keep a record of the |
| Division of Labor Standards Enforcement | | | | wages abandoned and turned over to the state |
| P.O. Box 420603 | | | | for a period of seven years.There is no provision |
| San Francisco, CA 94142-3660 | | | | in California law concerning tip credits against |
| provision in the law for minimum wage in the | | | | State minimum wage.In California the payroll laws |
| State of California is $6.75 per hour..The general | | | | covering mandatory rest or meal breaks are a |
| provision in California State Law covering paying | | | | 30-minute meal break after five hours; 30 |
| overtime in a non-FLSA covered employer is one | | | | minutes after 10 hours; 10 minute rest after four |
| and 1/2 times regular rate after an 8 hour day, | | | | hours.California law concerning record retention of |
| 40 hour week in most industries. Check for other | | | | wage and hour records is two years..The |
| overtime rules and exemptions..California State | | | | California agency charged with enforcing Child |
| new hire reporting requirements are that every | | | | Support Orders and laws is:Department of Child |
| employer must report every new hire, rehire and | | | | Support Services |
| contract who is paid over $600.00. The employer | | | | P.O. Box 944245 |
| must report the federally required elements | | | | Sacramento, CA 95244-2440 |
| of:Employee's name | | | | 916-654-1532 |
| Employee's address | | | | www,childsup,cahwnet.gov/default.htmCalifornia |
| Employee's social security number | | | | has the following provisions for child support |
| Employer's name | | | | deductions:When to start Withholding? 10 days |
| Employers address | | | | after service |
| Employer's Federal Employer Identification | | | | When to send Payment? Within 7 days of |
| Number (EIN) Plus date of hire; state EIN; date, | | | | Payday. |
| dollar amount, expiration date of contract.This | | | | When to send Termination Notice? When next |
| information must be reported within 20 days of | | | | payment is due |
| the hiring or rehiring; or after $600.00 minimum is | | | | Maximum Administrative Fee? $1 per payment. |
| met or contract is signed whichever is earlier. | | | | Withholding Limits? 50% of disposable earnings. |
| . | | | | Please note that this article is not updated for |
| The information can be sent as a W4 or | | | | changes that can and will happen from time to |
| equivalent DE34 by mail, fax or electronically. | | | | time.Charles J. Read, CPA has been in the payroll, |
| There is a $24.00 to $490.00 penalty for a late | | | | accounting and tax business for 30 years, the last |
| report in California.The California new hire | | | | fifteen in private practice. Mr. Read is the author |
| reporting agency can be reached at 916-657-0529 | | | | of "How to Start a New Business".For Professional |
| or on the web at .California does allow compulsory | | | | Payroll services at a Budget Price go to a |
| direct deposit but the employee's choice of | | | | Paperless Payroll Company.Go to for a full service |
| financial institution must meet federal Regulation E | | | | payroll service bureau.See an excerpt of Mr. |
| regarding choice of financial institutions.California | | | | Read's interviews from William Shatners |
| does not allow compulsory direct depositCalifornia | | | | "Heartbeat of America" television show on the |
| requires the following information on an | | | | websites linked above. |