California Unemployment Compensation laws & HR compliance analysis

California Unemployment Compensation: What you need to know

Virtually all employers are covered by California’s Unemployment Insurance Code (CA Unemp. Ins. Sec. 1 et seq.) and are therefore subject to the state unemployment insurance tax. The law's coverage extends to those that:

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• Employed one or more persons for some part of a day and paid wages over $100 in any quarter in either the current or preceding calendar year;

• Paid domestic servants cash wages of $1,000 or more in any quarter of the current or previous calendar year;

• In the movie, radio, or TV industry, assumed the legal obligation to pay wages from an employer for whom work was performed under a union contract;

• Contracted for the creation of a specially commissioned work of authorship;

• Are subject to the Federal Unemployment Tax Act (FUTA); and

• Elect to be covered (Cal. Unemp. Ins. Code Sec. 675 et seq.).

Exceptions to Coverage

The law excludes certain services from coverage, including, for example, services performed by:

• Students working for schools, colleges, or universities;

• Students working for work study programs;

• Spouses of students working for the school;

• Consultants working as independent contractors offering personal services;

• Real estate agents;

• Licensed business opportunity, mineral, oil, gas, or cemetery brokers paid solely by commission;

• Student nurses;

• Hospital interns;

• Certain newspaper distributors (e.g., minors);

• Casual laborers; and

• Certain workers for religious organizations (Cal. Unemp. Ins. Code Sec. 621 et seq.).

Taxable wage base.For the current taxable wage base, visit http://www.edd.ca.gov/payroll_taxes/rates_and_withholding.htm. The term “wages” includes:

• The reasonable value of any noncash remuneration;

• Commissions and bonuses; and

• Reported tips ...

More on this topic:

Who Is Covered?

Payment of Taxes

Benefits

The Claims Process: Reviews, Notifications, and Appeals

Additional Information

State Requirements

California Unemployment Compensation Resources

Type	Title
Forms	Employer's Representative Authorization
Handouts	Unemployment Compensation (Handout)
Policies	Unemployment Compensation
Posters	Wisconsin Unemployment Benefits, Notice to Employees About Claiming Poster

See all Unemployment Compensation Resources