1.45% - Medicare
1.5% to 6.2% - Unemployment
.1% on the first $7,000 - Employment Training Tax
1.45% - Medicare
1.5%-6.2% - Unemployment
1% per year - State Disability Insurance
California minimum wage is set at $12.00 per hour and $13.00 per hour for companies with 26 or more employees.
Paid Time Off
There is no official law regarding vacation days for employee. Each employer decides the number of days upon hiring the employee. However, if the employer decides to include paid vacation, any unused days should be paid in lieu.
The minimum amount of paid sick leave is 3 days. Employees earn 1 hour of paid sick leave for every 30 hours of work. Any unused sick leave can transfer to the following year. However, an employer is allowed to set a 6-day cap on the total accrued paid sick leave.
See parental leave.
See parental leave.
Parent Leave: Employees who have worked for at least one year, with at least 1,250 hours completed in the 12 months prior to leave, are entitled to 12 weeks leave. This covers biological, adopted, or foster children. This leaves covers employers who have at least 20 employees in a 75-mile radius.
Pregnancy Disability Leave: up to 4 months leave for employees who have suffered a disability related to pregnancy.
Bereavement Leave: Employers are not required to provide bereavement leave to employees.
Work related injury leave: All employers must provide workers’ compensation benefits to employees. If an employee is injured at work, they must report the injury within 30 days of the accident. Once the injury is reported the employer has a day to provide the employee with a claim form. Once this form is completed, it will be given to the workers compensation insurance company.
California has 11 public holidays.
A normal workday is 8 hours and a workweek is 40 hours.
One and one-half times the employee’s regular pay should be given for work exceeding 8 daily hours and up to 12 hours. This is also paid for the first 7 hours worked on the 7th consecutive day.
Employer: has to contribute 12.56% of the employee's wages.
Employee: has to contribute 12.56% of his/her wages.
CalSavers is a retirement program that will be implemented in the near future depending on the size of the business.
- 5 or more employees – June 30th, 2022
- 50 or more employees – June 30th, 2021
- 100 or more employees – June 30th, 2020
Contributions are deducted from the employees’ wages at a rate of 5%. Each year the contribution increases at 1% capping at 8%.
The Federal insurance Contributions Act (FICA) tax rate for 2020 is a 6.2% contribution towards social security. Employers and employees both contribute this amount. The maximum Social security tax for employees and employers in 2020 is $8,537.40.
The Federal insurance Contributions Act (FICA) tax rate for 2020 is a 1.45% contribution towards Medicare. Employers and employees both contribute this amount. The wage base for 2020 is set at $137,700, and wages in excess of $200,00 will be subject to an extra .9% Medicare withholding tax.
State Disability Insurance (SDI) is a deduction taken from the employee’s wages and goes towards providing benefits for non-work-related illness, injury, pregnancy, and paid family leave. The contribution rate is 1% per year, with the maximum employee contribution set at $1,229.09.
Unemployment insurance (UI) is tax contribution made by the employer that provides payments to unemployed persons. The current contribution is between 1.5% to 6.2% with the taxable wage base set at $7,000 per employee. The tax rate or a new employer is 3.4%.
Employment Training Tax (ETT) is a fund intended to promote a healthy labor market by training employees in targeted industries. The ETT is an employer contribution of .1% on the first $7,000 in wages paid to each employee in the calendar year. The maximum contribution is $7 per employee, per year.
Employees should be paid at least twice per month.
Work done between the 1st and the 15th must be paid by the 26th of the month, and work done between the 16th and the last day of the month must be paid by the 10th of the following month.
California is an At-Will State, meaning termination procedures are only required if they are in the employee’s collective bargaining agreement.
No notice period is required.
Employers are not required to provide severance pay to their employees.