The State of California

California, the most populous state in the U.S., is renowned for its diverse economy, encompassing technology, entertainment, agriculture, and manufacturing sectors. With a robust regulatory framework, it's essential for employers to stay informed about the state's payroll, taxation, and employment laws to ensure compliance and foster a productive workforce.
Contractor Management
Payroll
Currency
United States Dollar (USD)
Payroll Frequency
Biweekly or monthly, depending on employer policy
Employer Taxes
15.15% - 19.85%

Overview

Population
~ 39.5 million
Language
English
Capital
Sacramento
Currency
United States Dollar (USD)
Country code
+1
Min wage
16.50 USD/hour for all employers
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary
Avg employer tax

15.15% - 19.85%

Tax Breakdown

Personal Income Tax (PIT):

Progressive Tax Rates
Ranging from 1% to 13.3% based on income brackets
Additional Tax
1% surcharge for incomes exceeding $1 million (Mental Health Services Tax)
Top Rate
13.3% for incomes over $1 million

Corporate Income Tax (CIT):

Flat Rate
8.84% for most corporations
Alternative Minimum Tax (AMT)
6.65% for corporations with gross receipts over $1 million

Sales and Use Tax:

Statewide Base Rate
7.25%
Local Additions
Cities and counties may impose additional sales taxes, increasing the total rate

Payroll Taxes:

Unemployment Insurance (UI)
Taxable wage limit of $7,000 per employee per year; rates vary based on employer experience rating
Employment Training Tax (ETT)
0.1% on the first $7,000 of each employee’s wages annually
State Disability Insurance (SDI)
1.20% on all wages; no wage limit
Personal Income Tax (PIT) Withholding
Employers must withhold state income tax from employees' wages based on withholding schedules

VAT

VAT

8.68%

Tax Calculation for California
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
US
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in California typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

New Hire Reporting

Employers must report all new hires or rehires to the EDD within 20 days of their start-of-work date

Tax Forms

Employees must complete federal Form W-4 and California Form DE 4 for tax withholding purposes

Workers' Compensation Insurance

Employers are required to provide workers' compensation insurance for all employees

Workplace Posters

Employers must display required workplace posters informing employees of their rights and responsibilities

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in California
When drafting an employment contract for employees in California, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Employees accrue at least 1 hour of paid sick leave for every 30 hours worked
Maternity leave
  • Up to 12 weeks of unpaid leave under the Family and Medical Leave Act (FMLA) and California Family Rights Act (CFRA)
Paternity leave
  • Up to 12 weeks of unpaid leave under FMLA and CFRA

Parental Leave:

  • Covered under FMLA and CFRA; up to 12 weeks of unpaid leave

Bereavement Leave:

  • Not required by state law; varies by employer

Annual Leave
  • Not mandated by state law; however, many employers provide paid vacation time

10 Public holidays in California

Note: If a public holiday falls on a Sunday, the following Monday is observed as a public holiday.

1st
New Year's Day
20th
Martin Luther King Jr. Day
17th
Presidents' Day
26th
Memorial Day
4th
Independence Day
1st
Labor Day
13th
Columbus Day
11th
Veterans Day
27th
Thanksgiving Day
25th
Christmas Day
  • 1 Jan: New Year's Day
  • 17 Jan: Martin Luther King Jr. Birthday
  • 4 Feb: Rosa Parks Day
  • 21 Feb: President's Day
  • 31 Mar: César Chávez Day
  • 30 May: Memorial Day
  • 4 Jul: Independence Day
  • 5 Sep: Labor Day
  • 11 Nov: Veterans Day
  • 24 Nov: Thanksgiving Day
  • 25 Nov: Thanksgiving Friday
  • 25 Dec: Christmas Day
  • 26 Dec: Christmas Holiday

Termination Process

Notice Period

California is an "at-will" employment state; either party can terminate the relationship at any time, with or without cause, and with or without notice

Severance Pay

Not required by state law; subject to employer policy or contractual agreements

Final Paycheck

Must be provided immediately upon termination; includes all earned wages and accrued vacation time

Probation Period

  • Maximum Duration: No statutory limit; typically ranges from 30 to 90 days
  • Rights During Probation: Employees have the same rights as regular employees, including protection against discrimination and retaliation

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in California
with RemotePass

California offers a dynamic business environment with a diverse talent pool. RemotePass simplifies the process of hiring and managing employees in California, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including California.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

Free 7-day trial

No credit card required

Cancel anytime

Let’s Chat

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

The State of California

California, the most populous state in the U.S., is renowned for its diverse economy, encompassing technology, entertainment, agriculture, and manufacturing sectors. With a robust regulatory framework, it's essential for employers to stay informed about the state's payroll, taxation, and employment laws to ensure compliance and foster a productive workforce.
Contractor Management
Payroll
العملة
United States Dollar (USD)
تردد الرواتب
Biweekly or monthly, depending on employer policy
ضرائب أصحاب العمل
15.15% - 19.85%

نظرة عامة

التركيبة السكانية
~ 39.5 million
اللغة
English
العاصمة
Sacramento
العملة
United States Dollar (USD)
رمز الاتصال الدولي
+1
الحد الأدنى للأجور
16.50 USD/hour for all employers
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
40 hours per week

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary
متوسط ​​ضريبة صاحب العمل

15.15% - 19.85%

تحصيل الضرائب

Personal Income Tax (PIT):

Progressive Tax Rates
Ranging from 1% to 13.3% based on income brackets
Additional Tax
1% surcharge for incomes exceeding $1 million (Mental Health Services Tax)
Top Rate
13.3% for incomes over $1 million

Corporate Income Tax (CIT):

Flat Rate
8.84% for most corporations
Alternative Minimum Tax (AMT)
6.65% for corporations with gross receipts over $1 million

Sales and Use Tax:

Statewide Base Rate
7.25%
Local Additions
Cities and counties may impose additional sales taxes, increasing the total rate

Payroll Taxes:

Unemployment Insurance (UI)
Taxable wage limit of $7,000 per employee per year; rates vary based on employer experience rating
Employment Training Tax (ETT)
0.1% on the first $7,000 of each employee’s wages annually
State Disability Insurance (SDI)
1.20% on all wages; no wage limit
Personal Income Tax (PIT) Withholding
Employers must withhold state income tax from employees' wages based on withholding schedules

ضريبة القيمة المضافة

ضريبة القيمة المضافة

8.68%

حساب الضريبة في The State of California
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
US
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في The State of California عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

New Hire Reporting

Employers must report all new hires or rehires to the EDD within 20 days of their start-of-work date

Tax Forms

Employees must complete federal Form W-4 and California Form DE 4 for tax withholding purposes

Workers' Compensation Insurance

Employers are required to provide workers' compensation insurance for all employees

Workplace Posters

Employers must display required workplace posters informing employees of their rights and responsibilities

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في The State of California
عند إعداد عقد عمل للموظفين في The State of California يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • Employees accrue at least 1 hour of paid sick leave for every 30 hours worked
إجازة الأمومة
  • Up to 12 weeks of unpaid leave under the Family and Medical Leave Act (FMLA) and California Family Rights Act (CFRA)
إجازة الأبوة
  • Up to 12 weeks of unpaid leave under FMLA and CFRA

Parental Leave:

  • Covered under FMLA and CFRA; up to 12 weeks of unpaid leave

Bereavement Leave:

  • Not required by state law; varies by employer

الإجازة السنوية
  • Not mandated by state law; however, many employers provide paid vacation time

10 عطلات رسمية في The State of California

Note: If a public holiday falls on a Sunday, the following Monday is observed as a public holiday.

1st
New Year's Day
20th
Martin Luther King Jr. Day
17th
Presidents' Day
26th
Memorial Day
4th
Independence Day
1st
Labor Day
13th
Columbus Day
11th
Veterans Day
27th
Thanksgiving Day
25th
Christmas Day
  • 1 Jan: New Year's Day
  • 17 Jan: Martin Luther King Jr. Birthday
  • 4 Feb: Rosa Parks Day
  • 21 Feb: President's Day
  • 31 Mar: César Chávez Day
  • 30 May: Memorial Day
  • 4 Jul: Independence Day
  • 5 Sep: Labor Day
  • 11 Nov: Veterans Day
  • 24 Nov: Thanksgiving Day
  • 25 Nov: Thanksgiving Friday
  • 25 Dec: Christmas Day
  • 26 Dec: Christmas Holiday

عملية إنهاء العقود

Notice Period

California is an "at-will" employment state; either party can terminate the relationship at any time, with or without cause, and with or without notice

Severance Pay

Not required by state law; subject to employer policy or contractual agreements

Final Paycheck

Must be provided immediately upon termination; includes all earned wages and accrued vacation time

Probation Period

  • Maximum Duration: No statutory limit; typically ranges from 30 to 90 days
  • Rights During Probation: Employees have the same rights as regular employees, including protection against discrimination and retaliation

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

نمِّ فريقك في The State of California
مع ريموت باس

California offers a dynamic business environment with a diverse talent pool. RemotePass simplifies the process of hiring and managing employees in California, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك The State of California.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

يمكنك الإلغاء في أي وقت

دعنا نَدْرُدْش

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.