Employer Responsibilities
Before the First Employee Starts Work:
An employer who becomes subject to the employment tax laws is required to register with the Employment Development Department (EDD) to obtain identification number.
Notice of Rights of Victims of Domestic Violence, Sexual Assault and Stalking
All employers are required to provide a Notice of Rights of Victims of Domestic Violence, Sexual Assault and Stalking to all new employees and existing employees when they request it. Employers may use the notice below created by the Labor Commissioner.
Workplace Postings
In California, all employers must meet workplace posting obligations. Workplace postings are usually available at no cost from the requiring agency. The Department of Industrial Relations requires employers to post information related to wages, hours, and working conditions in an area frequented by employees where it may be easily read during the workday.
Benefits
As an employer, understanding the types of benefits you can offer helps you build a supportive and competitive workplace. Some benefits are required by law, while others are optional perks that can help you attract and retain great employees. By knowing the difference, you can make informed decisions about what to provide and how to structure a benefits package that fits your business.
Required Employee Benefits (Based on Federal & California Law)
- Workers’ Compensation Insurance
- Unemployment Insurance
- State Disability Insurance (SDI) and Paid Family Leave (funded by employee payroll deductions)
- Payroll tax contributions (Social Security & Medicare)
- Providing unpaid, jobprotected leave under laws such as FMLA/CFRA (when eligibility requirements are met)
- Providing meal and rest breaks (not a “benefit,” but a required labor protection)
Optional / PerkBased Employee Benefits:
- Health insurance (required only for employers with 50+ employees under the ACA; optional for smaller employers)
- Dental and vision insurance
- Retirement plans (401(k), SIMPLE IRA, employer match programs)
- Paid time off (vacation, holidays, sick leave — beyond required California paid sick leave minimums)
- Life insurance and disability insurance (beyond state-required DI)
- Flexible spending accounts (FSA) or health savings accounts (HSA)
- Employee assistance programs (EAPs)
- Professional development or tuition reimbursement
- Wellness programs or gym memberships
- Flexible or remote work schedules
- Commuter and transportation benefits
- Bonuses, profit sharing, or stock options
Family and Medical Leave Act (FMLA)
The FMLA entitles employees of covered employers to take unpaid, job-protected leave for qualifying family and medical reasons and requires continuation of their group health benefits under the same terms and conditions as is the employee had not taken leave. FMLA provides eligible employees up to 12 workweeks of leave in a 12-month period for any of the following qualifying reasons:
- The birth of a child and to care for the newborn child within one year of birth
- The placement with the employee of a child for adoption or foster care and care for the newly placed child within one year of placement.
- To care for the employee’s spouse, child, or parent who has a serious health condition.
- A serious health condition that makes the employee unable to perform the functions of their job.
- Any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on covered active duty or call to covered duty status
Disability Insurance
Disability Insurance is a state-run program that replaces part of an employee's wages when they can’t work due to a non-work related illness, injury, pregnancy, or childbirth. It helps employees pay bills and stay financially stable during recovery.
- Employers in California must withhold small amounts from every employee’s paycheck for DI (and Paid Family Leave), and send those funds to the Employment Development Department (EDD)
- This isn’t a cost to the employer—it’s funded by the employee deductions—but companies are responsible for managing the paperwork and payments correctly
- Employers deduct the current rate (which changes annually) from paychecks
- They then send these contributions to the EDD along with other state payroll taxes
- Employers also need to provide employees with required notices and promptly respond to claims filed by employees
To find current rates, review State Disability Insurance Withholding Rate on the Tax Rate and Withholding Schedules.
If you have contribution rate questions, contact your local Employment Tax Office.
If the business will have employees, the State of California Department of Industrial Relations has a variety of resources available to assist employers.