Hiring Employees in California

How do you hire employees in CA?

What Does a Company Have to Do When It’s Ready to Hire Employees in CA?

So, you are wondering what a new company has to do when it is ready to begin hiring employees in California. First of all, if your company has grown enough that you are planning on hiring employees, congratulations, you are clearly doing something right. Bringing on staff is an exciting time for a business, but, like everything else it involves some important steps that you don’t want to miss.

My OC Bookkeeper, the best accounting and bookkeeping firm in Orange County, has put together this handy guide to walk you through some of the basic things that you need to know when hiring employees in California. (Please remember, we are not lawyers, so this is not legal advice. Rather, this is a quick guide to make your life easier and save you some time! Believe us, wandering through a million websites trying to find info on state regulations can be quite frustrating.)

First things first, if you employ one or more people and you pay over $100 in wages during a given quarter you have to register as an employer with the California Employment Development Department (EDD). This is fairly easy and can be done online via the e-Services for Business portal. There you will get your employer payroll tax account number. (This is important so file it away somewhere safe.) The e-Services for Business portal is worth remembering. A lot of the information you will have to file with the California government can be addressed there.

Another useful site is the EDD’s Employer Portal. This is a great place to go to search for information and learn more about California’s various regulatory requirements.

Requirements for hiring employees in CA

As it turns out, there are a number of other things that you will need to do once you hire employees. Other ongoing responsibilities include:

  • Reporting wages paid and State Personal Income Tax (PIT) withheld from wages.
  • Paying Unemployment Insurance (UI) and Employment Training Tax (ETT) on employee wages, as well as withholding and remitting State Disability Insurance (SDI) and Personal Income Tax (PIT). (Refer to Rates and Witholding Schedules.)
  • Reporting all new employees to the New Employee Registry within 20 days of their start-to-work date.
  • If you use the services of independent contractors, you may also have to report them. Refer to Independent Contractor Reporting.
  • Posting notices in your workplace and providing employees with benefit information. Refer to Required Notices and Pamphlets.

If you can remember all of this you will be well on your way, but be sure to read through the EDD’s website, in particular the aforementioned Employer Portal, to make sure that your business is entirely compliant given its unique circumstance and the ever changing regulatory landscape.

So there you have it, My OC Bookkeeper’s quick guide to hiring employees in California. Have follow up questions or need help from the best accounting, bookkeeping, and business consulting service in Orange County? Reach out to us today!

Interested in learning more about setting up a business in CA? Check out our blog post on how to register a new business in CA. Or, better yet, watch  our Comprehensive Guide to Starting a Business in CA, (this is the one below) or our Quick Guide to Starting a Business in CA. If you like them, please don’t hesitate to ‘like’ and ‘subscribe’ – you will get good karma.

Best of luck with your business!