The California Employment Development Department (EDD) recently released the 2012 UI, ETT, and SDI rates. An historical compilation of prior year rates is available in Form DE 3395.
2012 UI, ETT, and SDI Rates
The UI rate schedule in effect for 2012 is Schedule “F+.” This is Schedule F plus a 15% emergency surcharge, rounded to the nearest tenth. Schedule “F+” provides for UI contribution rates from 1.5% to 6.2%.
Exception for Employers Subject to §977(c)
Exception: Employers subject to §977(c) of the CUIC must pay at the highest rate provided by law plus an additional 2%.
Taxable Wage Limit Remains at $7,000
The taxable wage limit is $7,000 per employee.
The Voluntary UI program Is Not in Effect for 2012
The Employment Training Tax (ETT) rate for 2012 is 0.1%. The UI and ETT taxable wage limit remains at $7,000 per employee per calendar year.
SDI Rate Is Set at 1.0%
The State Disability Insurance (SDI) withholding rate for 2012 is 1.0%. The taxable wage limit is $95,585 for each employee per calendar year. The maximum to withhold for each employee is $955.85.
Notices Will Be Mailed December 30
UI, ETT, and SDI tax rates are combined on a single rate notice, Notice of Contribution Rates and Statement of UI Reserve Account (DE 2088). The DE 2088 will be mailed in December, with a mailing date of December 30. Employers will have 60 days from the December 30 mailing date to protest any item on the DE 2088 except SDI and ETT, which are specifically set by law.
New Employer Rate Set at 3.4%
For new employers, the UI tax rate is 3.4% for up to three years. Owners that purchased an established business have the option of acquiring the previous owner’s UI tax rate.
Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page
Contact Vision Payroll if you have any questions on the California unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.