California Employer Payroll Tax Calculator
What a California employer pays the EDD for each worker: Unemployment Insurance and the Employment Training Tax, plus the SDI you must withhold from pay.
California employers pay two EDD taxes on each employee: Unemployment Insurance at their assigned rate (1.5%–6.2%; new employers 3.4%) and the Employment Training Tax (0.1%), both on the first $7,000 of wages per year. That's at most $245 per employee for a new employer. Employees pay SDI (1.3% of all wages) through withholding.
Enter average annual wages per employee, how many employees you have, and your UI rate from your EDD notice (DE 2088). New employers use the default.
Employer Payroll Tax Calculator
California Employer Payroll Taxes
Unemployment Insurance
Employment Training Tax
SDI you withhold (employee-paid)
How this is calculated
Unemployment Insurance (UI). Paid only by the employer, on the first $7,000 of each employee's wages each calendar year. New employers are assigned 3.4% for two to three years. After that the EDD sets your rate each December based on your layoff history, from 1.5% to 6.2% under the current Schedule F+. Your rate is on the Notice of Contribution Rates (DE 2088).
Employment Training Tax (ETT). 0.1% of the first $7,000 per employee, paid by the employer to fund worker training. Your DE 2088 shows whether ETT applies to your account.
State Disability Insurance (SDI). Paid by employees, not employers: you withhold 1.3% of every dollar of wages (there has been no wage cap since 2024) and send it to the EDD with your payroll deposits. It funds disability and Paid Family Leave benefits.
California income tax withholding (PIT) is also withheld from employees under their DE 4 and reported to the EDD, but it is the employee's tax, not an employer cost. Use the paycheck calculator for the employee side.
Workers' compensation insurance is required for every California employer but is bought from an insurer, not paid to the EDD, so it is not included.
Frequently Asked Questions
What payroll taxes do California employers pay?
Two EDD taxes: Unemployment Insurance (UI), at a rate from 1.5% to 6.2% (3.4% for new employers), and the Employment Training Tax (ETT) at 0.1%, both on the first $7,000 of each employee's wages per year. Employers also withhold SDI and state income tax from employees' pay.
What is the California Employment Training Tax (ETT)?
A 0.1% employer-paid tax on the first $7,000 of each employee's annual wages, up to $7 per employee per year, used to fund job training programs through the Employment Training Panel.
Who pays SDI in California, the employer or the employee?
The employee. Employers withhold SDI from wages at the current rate (1.3% in 2026) on all wages, with no cap since 2024, and send it to the EDD.
How is my California UI rate set?
New employers pay 3.4% for two to three years. After that, the EDD calculates a rate each year from your reserve account (UI contributions paid minus benefits charged to your account) and the statewide rate schedule, and mails it on the DE 2088 notice in December.
When are California payroll taxes due?
Payroll tax deposits of UI, ETT, SDI and withheld income tax are due on a schedule based on your federal deposit schedule (for example monthly or semiweekly). Quarterly returns (DE 9 and DE 9C) are due by the last day of the month after each quarter.
This tool provides an educational estimate only and is not tax advice. Your actual UI rate, ETT applicability and deposit schedule come from the EDD. It does not include federal payroll taxes or workers' compensation insurance.