California Employer Tax Information | Square Support Center (2024)

What’s in this article?

Add Your EDD Number to Square PayrollAdd Your California SUI Tax Rate to Square PayrollCalifornia State Tax DetailsCalSavers Retirement Program

To sign up with Square Payrollin California, you must provide your State Employer Payroll Tax Account Number (EDD Number).

Add Your EDD Number to Square Payroll

You must have an EDD number to sign up with Square Payroll. This information is required for us to make state tax payments and filings on your behalf.

Don’t Have an EDD Number?

The easiest way to get an EDD number is toenroll online with the EDD’s E-Services for Business portal. If prompted to enter a payroll agent, select “No”. You should register for your EDD number as though you do not have a payroll agent. Once you successfully enroll, you’ll receive an EDD number for your business.

Alternatively, you can call the EDD at 888-745-3886 on weekdays from 8 a.m. to 5 p.m Pacifictimeto speak with a staff member.

Can’t Find Your EDD Number?

There are three ways to locate your EDD number:

Click for more information to get or locate an EIN.

If you need to make changes to your EDD number, pleasecontact us.

Add Your California SUI Tax Rate to Square Payroll

To locate your state unemployment insurance (SUI) Tax Rate, log into the EDD website. If you are a new employer, you will receive your tax rate after you complete the online registration with the EDD.

Although Square Payroll will assist in verifying your tax rates each quarter, given that you have provided a valid Employment Development Department (EDD) number, you are responsible for ensuring that these rates are accurately reflected under Tax Info on your Dashboard:

  • State Unemployment Insurance (SUI) Rate

  • Employment Training Tax (ETT) Rate

The State Disability Insurance (SDI) rate is fixed for all employers so Square Payroll will update your SDI according to the annual rate set by CA EDD. Please contact usif you need to update your rates.

California State Tax Details

Square Payroll processes the following per the frequency below to the listed state agencies:

Agency Name Frequency
California Employment Development Department (EDD) Payroll Tax Deposit Coupon (DE 88) Semi-Weekly / Monthly / Quarterly
Quarterly Contribution Return and Report of Wages (DE 9) Quarterly
Quarterly Contribution Return and Report of Wages Continuation (DE 9C) Quarterly
Report of New Employees (DE 34) Per New Employee

Review a full list of tax resourcesfor all Square Payroll supported states. Find out how Square is supporting small business owners with payroll services in San Francisco.

CalSavers Retirement Program

CalSavers is California’s retirement savings program that enables eligible employees to automatically contribute a portion of their paycheck to a Roth IRA. Employers can sign up for CalSavers directly through the state to offer this benefit to their employees for free. CalSavers is a voluntary retirement program for employees.

All California employers are required to give employees access to CalSavers, unless they offer a company sponsored retirement plan, like a 401(k) plan through Square Payroll’s third party integration with Guideline.

If employees opt in to the CalSavers program, employers can set up a benefit deduction in their team’s payroll profile to withhold contribution amounts from their paycheck.
To do so:

  1. Log in to your Square Dashboard, click Staff & payroll > Team, and select an employee’s name.

  2. Click Add Benefit > Create New.

  3. Enter a plan name as you’d like it to appear in your employee’s pay stubs. For example, CalSavers or Roth IRA. Note: The benefit name can’t be edited retroactively.

  4. Click Select > Roth IRA as the benefit type for the CalSavers program.

  5. Specify the details for your employee’s deductions such as the calculation method and any deductions to date. Note: Selecting Percentage of Disposable Income would calculate the contribution as a percentage of the gross pay minus taxes or other pre-tax deductions. If an employee wishes to deduct 5% of their gross pay, we recommend manually calculating the amount and inputting via Dollar Amount setting for accuracy.

  6. If you would like the contributions to not exceed a specific dollar amount within a calendar year, click Add Limit in the Deduction Limit field and enter the limit as a dollar amount. Information about CalSavers contribution limits can be found within the CalSavers FAQ.

  7. Click Save.

If creating a manual deduction, employers must submit each paycheck’s contribution amount to CalSavers within 7 days of taking the deduction out of the participating employee’s paycheck. Square Payroll does not complete this payment on behalf of employees or employers.

Note: The initial CalSavers mandate was expanded to include employers with at least one employee, effective January 1, 2023. Employers with 1-4 employees have until December 31, 2025 to register. If employers miss the program deadline or fail to allow employees to participate, they can face penalties of $250 per employee if they don’t comply within 90 days of receiving notice. The penalty then increases to $500 per employee if the employer fails to comply within 180 days of receiving notice.

California Employer Tax Information | Square Support Center (2024)
Top Articles
Latest Posts
Article information

Author: Laurine Ryan

Last Updated:

Views: 5419

Rating: 4.7 / 5 (57 voted)

Reviews: 80% of readers found this page helpful

Author information

Name: Laurine Ryan

Birthday: 1994-12-23

Address: Suite 751 871 Lissette Throughway, West Kittie, NH 41603

Phone: +2366831109631

Job: Sales Producer

Hobby: Creative writing, Motor sports, Do it yourself, Skateboarding, Coffee roasting, Calligraphy, Stand-up comedy

Introduction: My name is Laurine Ryan, I am a adorable, fair, graceful, spotless, gorgeous, homely, cooperative person who loves writing and wants to share my knowledge and understanding with you.