CA Payroll Tax

2008 CALIFORNIA PAYROLL TAX DEPOSIT REQUIREMENTS

 
  California Personal Income Tax (PIT) California State Disability Insurance Tax (SDI) California Unemployment Insurance Tax (UI) / Employment Training Tax (ETT)
RATE: Refer to W-4 prepared by each employee & 2008 CA Employer's Guide 0.8% UI: 1.5% to 6.2%

ETT: 0.1%
BASE: N/A $86,698 $7,000
MAXIMUM: No maximum $693.58 $434.00 / $7.00
FORM: DE 88 DE 88 DE 88
PAID BY: Employee Employee Employer

DEPOSIT REQUIREMENTS:
PIT
If you have accumulated more than $400 in PIT, you are required to pay PIT and SDI to the Employment Development Department, using federal deposit methods. Whichever method you use to make federal deposits will be the method used to make state deposits. If the accumulated quarterly PIT is $400 or less, but $350 or more, deposit by the 15th day of the following month. If under $350, pay by the quarterly return due date.

SDI
SDI withheld is to be deposited with PIT no matter what amount has been withheld.

Electronic funds transfer (EFT) - You may be required to make the deposit of PIT and SDI by EFT. If you will be required to deposit 2008 taxes by EFT, the California Employment Development Department (EDD) should notify you by October 31, 2007. If you were required to deposit by EFT in prior years, you will not be issued a new notice. Notification notwithstanding, you must use EFT for 2008 if your average (per payment) deposit for PIT and SDI was $20,000 or more for the California fiscal year ended June 30, 2007. For details, call EDD’s EFT Unit at (916) 654-9130.

UI
UI and ETT are to be deposited with PIT and SDI and must be deposited at least quarterly regardless of when PIT and SDI are deposited.

NOTE 1:
Each December, Employment Development Department notifies employers of their UI, ETT and SDI tax rates and taxable wage limits for the upcoming year by sending a Notice of Contribution Rates and Statement of UI Reserve Account (DE 2088).