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 : 5860 Word Count Appx. : 973

See All articles From Author

Wed, 08 Feb 2012 00:54:11 GMT Chairman, 3 others out in Yahoo board shake-up (AP)

AP - Yahoo Chairman Roy Bostock and three longtime board members are stepping down, submitting to the demands of many frustrated shareholders who blame them for contributing to the follies that have dragged down the Internet company's revenue and stock price.

Tue, 07 Feb 2012 23:58:47 GMT Disney 1Q revenue misses estimates but profits up (AP)

AP - The Walt Disney Co. said Tuesday that its net income rose 12 percent in the final quarter of 2011, as a slimmer movie slate and upbeat theme park results helped the company top earnings forecasts even while revenue gains were less than expected.

Wed, 08 Feb 2012 00:01:25 GMT 2.1 million viewers live stream Super Bowl online (AP)
AP - The first live stream of the Super Bowl drew 2.1 million unique viewers, NBC said Thursday.

Wed, 08 Feb 2012 02:49:44 GMT Just Show Me: 3 great and free cooking apps for the iPhone (Yahoo! News)
Yahoo! News - Welcome toÂ Just Show Me onÂ Tecca TV, where we show you tips and tricks for getting the most out of theÂ gadgets in your life. In today's episode we'll show three greatÂ cooking apps for theÂ iPhone. BigOven Epicurious Serving Sizer Take a look …

Wed, 08 Feb 2012 02:39:36 GMT Transparent Screen app saves you from bodily injury while texting (Yahoo! News)
Yahoo! News - Fond ofÂ texting while walking? Unless you're extremely nimble, you may have bumped into people, objects, or even stumbled. In extreme cases, you may have even bruised yourself or broken a few things. But if you have anÂ Android device, you can …

Tue, 31 Jan 2012 23:45:44 GMT NASA Launches Facebook Game to Test Space Program Knowledge (Mashable)
Mashable - How much do you know about the NASA space program, Earthling?

Wed, 08 Feb 2012 05:37:34 GMT Analysis: More than just Great Firewall awaits Facebook in China (Reuters)
Reuters - When it comes to China, Facebook should consider itself forewarned. Cracking the world's biggest internet population might seem an obvious ambition for the social networking giant as it trumpets its global growth before a $5 billion initial public offering, but the chances it will succeed look slim.

Wed, 08 Feb 2012 01:23:46 GMT Yahoo chairman exits, review drags on (Reuters)

Reuters - Yahoo Inc Chairman Roy Bostock and three other directors will step down as the struggling company ploughs ahead with an internal overhaul, including discussions on dealing with its stakes in China's Alibaba Group and Yahoo Japan.

Wed, 08 Feb 2012 00:26:41 GMT Social Gaming Apps for Android -- Steam, Xbox Live and More (ContributorNetwork)
ContributorNetwork - For many people, gaming is no longer a solitary experience where you buy a game and bring it back home and play it -- not even on Android-powered smartphones and tablets. Because it's not just that people are buying games from the Android Market, or Gameloft's store, or other online marketplaces. They're making friends, playing online, and earning trophies and achievements through gameplay that their friends can then see on their profiles.

Tue, 07 Feb 2012 22:50:41 GMT Google Android Mascot Merchandise -- Own Your Own Tiny Robot (ContributorNetwork)
ContributorNetwork - COMMENTARY | Say what you will about the relative merits of Android smartphones vs. the iPhone, but the Android mascot wins against the iPhone's hands-down. This is largely because the iPhone doesn't have a mascot, but that's not the point. The point is that the cute little green robot seen all over Android phone commercials (and depicted in Google branding) can be yours, and can sit on your desk or even do useful things for you. And yes, he comes in more colors than just green.

Wed, 08 Feb 2012 01:31:45 GMT CalSTRS wants Facebook board to expand, add women (Reuters)

Reuters - The California State Teachers' Retirement System, the second-largest largest pension fund in the United States, wants Facebook Inc to expand its board of directors and diversify a panel that has no women.

Tue, 07 Feb 2012 23:35:39 GMT Halliburton to abandon BlackBerry, turn to iPhone (Reuters)
Reuters - Oil field services company Halliburton plans to stop issuing BlackBerry smartphones to employees and switch over to Apple's iPhone, which it said was better suited to its needs, marking another setback for Research In Motion.

Tue, 07 Feb 2012 23:13:00 GMT Path iPhone app shown to be uploading iOS address books to its servers (Appolicious)
Appolicious - One of the most popular social networking apps available for iOS and Android devices is in a bit of hot water.

Tue, 07 Feb 2012 20:50:06 GMT Summary Box: Jobs flow from mobile, Facebook apps (AP)
AP - CAREER OPPORTUNITY: All those apps being made for smartphones, computer tablets and Facebook's online social network are helping the U.S. economy lower its unemployment rate. A study released Tuesday by the technology trade group TechNet estimates apps are responsible for creating about 466,000 U.S. jobs since 2007.

Tue, 07 Feb 2012 22:51:02 GMT Amazon, Viacom close to Web video deal (Reuters)
Reuters - Amazon.com Inc is about to announce a Web video deal with Viacom Inc in what sources said was one of the last steps in a plan to launch a standalone subscription service to compete with Netflix Inc.

Tue, 07 Feb 2012 22:00:00 GMT Don’t stress tax time with these helpful iPhone apps (Appolicious)
Appolicious - It’s tax time! What, it isn’t a happy time for you? Well maybe you should spend more time prepping throughout the year with your iPhone apps so you don’t get so stressed out come the beginning of next year. Tax time shouldn’t be stressful, it should be routine. Here are some helpful tax apps to get you started on a road to financial stability.

Tue, 07 Feb 2012 22:53:55 GMT RIM tells European developers it's "ready to compete" (Reuters)

Reuters - Next-generation software for BlackBerry's smartphones is "ready to compete", Research In Motion's new chief executive, Thorsten Heins, told more than 2,000 technical developers on Tuesday, expressing confidence in RIM's long-term future.

Mon, 06 Feb 2012 23:21:16 GMT Cisco seen reporting solid second quarter (Reuters)
Reuters - A year after network equipment maker Cisco Systems Inc unnerved investors with yet another weak quarterly outlook the company looks set to report a stable quarter buoyed in part by improving enterprise demand in the United States.

© 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