Last reviewed: October 20, 2026

Payroll requirements in California

California payroll is state withholding, state unemployment insurance, a higher minimum wage, and daily overtime. HR360 TechX can store the payroll run. It does not register you with the Employment Development Department or file the return.

Withholding and unemployment insurance

Employers withhold California personal income tax and pay Unemployment Insurance and Employment Training Tax through the Employment Development Department. The rate you pay is assigned to the employer. It is not a single statewide percentage you can copy from a blog. Register and read the current rates at EDD payroll taxes.

Minimum wage, overtime, and the final paycheck

The US Department of Labor’s consolidated minimum-wage table, effective July 1, 2026, lists California at $16.90 an hour. Local rates can be higher. Source: DOL consolidated minimum wage table. Confirm the current poster at the California DIR minimum wage FAQ.

California overtime is not only the federal 40-hour rule. The DIR overtime FAQ describes time and a half after 8 hours in a workday or 40 hours in a workweek, and double time after 12 hours in a workday. Source: DIR overtime FAQ.

The DIR payday FAQ describes final wages as due immediately when an employer discharges an employee. When an employee quits without notice, wages are due within 72 hours. Source: DIR payday FAQ.

Pay frequency and new-hire reporting

The same DIR payday FAQ describes California’s regular payday rules, including pay at least twice during each calendar month for many employees, with exceptions. Read the FAQ before you set a schedule.

The federal Office of Child Support Services lists California new-hire reports as due within 20 days of the hire date, sent to the Employment Development Department. Source: HHS state new-hire directory and EDD new hire reporting.

This is general information for employers, not tax, legal, or payroll-filing advice. Rates and deadlines change. Confirm them with the cited agency before you pay people or file a return. HR360 TechX records payroll runs, payslips, time, and leave. It does not file Form 941, Form 940, W-2s, or 1099s.