Payroll California, Unique Aspects of California Payroll Law and Practice iArticleBeach.com - Free Articles for Reprint. Add great content to your web site today

Home | About Us | Contact Us





Forgot Password? New User?

	Poetry
	Business
	Music
	Humor
	Arts & Entertainment
	Movies
	Destinations
	Women Issues
	Home Improvement
	Dating
	Real Estate
	SEO
	Health & Fitness
	Investing
	Home Based Business

View all Categories

Welcome to iArticleBeach.com - Free Articles for Reprint. Add great content to your web site today!

Articles » Business >> View Article

Payroll California, Unique Aspects of California Payroll Law and Practice

By: Charles J. Read

The California State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:

Employment Development Department
800 Capitol Mall
Sacramento, CA 95814
888-745-3886
www.cahwnet.gov/taxind.htm

California requires that you use California form "DE 4, Employee's Withholding Allowance Certificate" instead of a Federal W-4 Form for California State Income Tax Withholding.

Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In California cafeteria plans: are not taxable for income tax calculation; are not taxable for unemployment insurance purposes. 401(k) plan deferrals are: not taxable for income taxes; are taxable for unemployment purposes.

In California supplemental wages are taxed at a 6% flat rate, 9.3% for stock options and bonuses.

You are not required to file California State W-2s.

The California State Unemployment Insurance Agency is:

Employment Development Department
P.O. Box 826880 - MIC 94
Sacramento, CA 94280-0001
888-745-3886
www.edd.cahwnet.gov/

The State of California taxable wage base for unemployment purposes is wages up to $7000.00.

California requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter.

Unemployment records must be retained in California for a minimum period of four years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

The California State Agency charged with enforcing the state wage and hour laws is:

The Department of Industrial Relations
Division of Labor Standards Enforcement
P.O. Box 420603
San Francisco, CA 94142-3660
www.dir.ca/gov/dlse/dlse.html

The provision in the law for minimum wage in the State of California is $6.75 per hour.

The general provision in California State Law covering paying overtime in a non-FLSA covered employer is one and 1/2 times regular rate after an 8 hour day, 40 hour week in most industries. Check for other overtime rules and exemptions.

California State new hire reporting requirements are that every employer must report every new hire, rehire and contractor who is paid over $600.00. The employer must report the federally required elements of:

Employee's name
Employee's address
Employee's social security number
Employer's name
Employers address
Employer's Federal Employer Identification Number (EIN)

Plus date of hire; state EIN; date, dollar amount, expiration date of contract.

This information must be reported within 20 days of the hiring or rehiring; or after $600.00 minimum is met or contract is signed whichever is earlier.
.
The information can be sent as a W4 or equivalent DE34 by mail, fax or electronically.
There is a $24.00 to $490.00 penalty for a late report in California.

The California new hire-reporting agency can be reached at 916-657-0529 or on the web at www.edd.cahwnet.gov/txner.htm

California does allow compulsory direct deposit but the employee's choice of financial institution must meet federal Regulation E regarding choice of financial institutions.

California does not allow compulsory direct deposit

California State Wage and Hour Law provisions concerning pay stub information detail the following information must be on the paystub.

Gross and net earnings
Hours worked at each hourly rate for hourly workers
Piece rate and number of pieces
Deductions
Pay period dates
Employee's name and social security number
Employer's name and address

In California employees must be paid at least semimonthly, monthly for FLSA exempt employees. The lag time between earned and paid is governed by statute in California. Wages earned from the 1st through the 15th of the month must be paid by the 26th. Wages earned from the 16th through the end of the month must be paid by the 10th of the following month. Exempt employees by the 26th of the month for the entire month (a safe harbor is payment within 7 days after the pay period.)

California payroll law requires that involuntarily terminated employees must be paid their final pay immediately; within 72 hours for seasonal employees; within 24 hours for certain motion picture (by next payday if laid off) and certain oil drilling employees. Voluntarily terminated employees must be paid their final pay within 72 hours; immediately if 72 hours' notice of quit is given; strikers on next regular payday.

Deceased employee's wages to a maximum of $5,000.00 must be paid to the surviving spouse or conservator when an Affidavit of right and proof of identity are presented.

Escheat laws in California require that unclaimed wages be paid over to the state after one year.

The employer is further required in California to keep a record of the wages abandoned and turned over to the state for a period of seven years.

There is no provision in California law concerning tip credits against State minimum wage.

In California the payroll laws covering mandatory rest or meal breaks are a 30-minute meal break after five hours; 30 minutes after 10 hours; 10-minute rest after four hours.

California law concerning record retention of wage and hour records is two years.

The California agency charged with enforcing Child Support Orders and laws is:

Department of Child Support Services
P.O. Box 944245
Sacramento, CA 95244-2440
916-654-1532
www,childsup,cahwnet.gov/default.htm

California has the following provisions for child support deductions:

When to start Withholding? 10 days after service
When to send Payment? Within 7 days of Payday.
When to send Termination Notice? When next payment is due
Maximum Administrative Fee? $1 per payment.
Withholding Limits? 50% of disposable earnings.

Please note that this article is not updated for changes that can and will happen from time to time.

Charles J. Read, CPA has been in the payroll, accounting and tax business for 30 years,
the last fifteen in private practice. Mr. Read is the author of "Tax and Accounting Issues
in Forming a New Business."

To find professional payroll services at a budget price go to www.payrollonabudget.com
a paperless payroll company.

For a full service payroll bureau with CPA's on staff visit www.CustomPayroll.com .

See an excerpt of Mr. Read's interviews from William Shatner's "Heartbeat of America"
television show on the web sites linked above.

Total Views : 2380 Word Count Appx. : 973

See All articles From Author

Thu, 02 Sep 2010 19:00:06 GMT Google, Skype targeted in India security crackdown (AP)

AP - India has widened its security crackdown, asking all companies that provide encrypted communications — not just BlackBerry-maker Research In Motion — to install servers in the country to make it easier for the government to obtain users' data. That would likely affect digital giants like Google and Skype.

Fri, 03 Sep 2010 01:48:44 GMT Dell's enterprise challenge remains after 3Par (AP)

AP - Dell Inc. doesn't have to start over in its quest to become a significant purveyor of technology for businesses after losing a multibillion dollar bidding contest for an obscure data-storage maker.

Thu, 02 Sep 2010 22:17:33 GMT Dell cedes data-storage maker 3Par to HP (AP)

AP - Dell Inc. is walking away from a bidding contest with rival Hewlett-Packard Co. for data-storage maker 3Par Inc.

Mon, 30 Aug 2010 19:19:43 GMT Able to unplug from work while you’re on vacation? (Ben Patterson)
Ben Patterson - Fighting the urge to check your work e-mail while you’re on holiday doesn’t exactly qualify as the worst problem in the world; after all, it’s pretty nice to have a job at all in this tough economy, right? Then again, the pressure to hang onto a job seems to be driving more and more connected workers to stay plugged in even while they’re trying to tune out.

Mon, 30 Aug 2010 15:58:20 GMT Mobile users still wary of being found, survey says (Ben Patterson)
Ben Patterson - Feel the need to "check in" on Foursquare or Facebook every time you saunter into a restaurant, browse the goods at your neighborhood grocery store, or cram into a rock concert? Well, if you, you’re still in the minority — and you’re also probably a guy below 40 — according to the latest research.

Fri, 03 Sep 2010 00:36:00 GMT Bug found with Automator and iTunes 10 (Macworld.com)
Macworld.com - As youâ€™re aware, Apple just released iTunes 10. With that release has come some changesâ€”both expected and not so.

Fri, 03 Sep 2010 01:46:40 GMT HP vs Dell: the showdown that ended in spectacle (AP)

AP - The showdown over 3Par Inc. that ended Thursday was a puzzling spectacle.

Fri, 03 Sep 2010 00:28:00 GMT Stream TV Android Froyo Tablet: Sneak Peak Now, Preorders Next Week (PC World)
PC World - For all of this year's chatter about the coming army of Android tablets, the near radio silence has been deafening. Until now. First, at consumer electronics show IFA in Berlin, came news of a global launch of the Samsung Galaxy Tab. And starting next week, you can hop onto Amazon.com to pre-order the Stream TV eLocity A7.

Thu, 02 Sep 2010 22:52:00 GMT IPad faces new tablet challengers (Investor's Business Daily)
Investor's Business Daily - Electronic giants Samsung and Toshiba each unveiled new tablet PCs running Google's (NMS:GOOG) Android OS that aim to tap consumer demand ignited by the Apple (NMS:AAPL) iPad. Samsung's Galaxy Tab features a 7-inch touch screen and WiFi and Bluetooth connectivity. Samsung said pricing will be $200-$300, depending on required 3G phone plans. Toshiba's Folio 100 features a larger 10-inch screen, but initially will only have WiFi connectivity. It'll be priced at $510. Apple rose 0.7% to 252.17.

Thu, 02 Sep 2010 21:24:00 GMT Privacy in iTunes Ping (PC World)
PC World - Ping is Apple's music-centric social network that is integrated into iTunes 10. From a privacy standpoint, it's pretty straightforward--as opposed to Facebook's multitude of privacy settings--but then again, Ping is also very limited as to what services it offers. In either case, here's a quick run-down of the privacy features present in Ping.

Thu, 02 Sep 2010 22:51:00 GMT Google (Investor's Business Daily)
Investor's Business Daily - Google (NMS:GOOG) will continue to provide the search results on AOL's Web site under a new, five-year deal. The deal will put AOL video content on Google's YouTube site for the first time. AOL edged up 0.7% to 23.05.

Thu, 02 Sep 2010 19:11:28 GMT Facebook Testing a "Stalker Button" (Mashable)
Mashable - Facebook is apparently testing a new subscription feature that would allow users to receive alerts any time a specific friend takes certain actions on the social network.

Thu, 02 Sep 2010 13:28:00 GMT Ping's scheme is to sell more tunes (Appolicious)
Appolicious - Do we really need another social network? That depends on how you view the purpose of social networks. The biggest, Facebook, is great for monitoring, from a safe distance, what your old high school buddies are doing. But don't put Apple's new Ping service into the same category.

Thu, 02 Sep 2010 22:24:48 GMT ArcSight posts higher fiscal 1Q profit (AP)
AP - ArcSight Inc. said Thursday its fiscal first-quarter profit tripled as the cybersecurity software and services company's sales jumped 39 percent.

Thu, 02 Sep 2010 17:07:24 GMT Tandberg Announces Data Protection Appliance for SMBs (PC Magazine)
PC Magazine - Tandberg Data now offers several enterprise-level network-attached data protection devices for the SMB.

Thu, 02 Sep 2010 21:20:10 GMT To Boost Security, Facebook Adds Remote Logout (PC World)
PC World - Facebook users will soon have a new way of knocking spammers out of legitimate accounts.

Thu, 02 Sep 2010 19:15:00 GMT A Guide to Today's Top 10 Linux Distributions (PC World)
PC World - One of the most confusing things for the newcomer to Linux is how many distributions, or versions, of the operating system there are. Ubuntu is the one most people have heard of, but there are hundreds of others as well, each offering some variant on the basic Linux theme.

Fri, 03 Sep 2010 01:48:22 GMT Video lambasting Google on privacy hits Times Square (AFP)

AFP - A video cartoon featuring Google's chief giving away ice cream to snoop on children aired on a giant screen in Times Square as a privacy group continued to hound the Internet giant.

© 2006 - Present - iArticleBeach.com - Free Articles for Reprint. Add great content to your web site today. All Rights Reserved. Use of our service is protected by our Privacy Policy and Terms of Service