Vision Payroll

November 22, 2011

California Announces 2012 UI, ETT, and EDI Rates

Filed under: News — Tags: , , , , — Vision @ 6:29 pm
Pam Harris, Chief Deputy Director, California EDD
Pam Harris, Chief Deputy Director, California EDD
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.

November 21, 2011

California Is a Credit Reduction State for 2011

Filed under: News — Tags: , , , , , — Vision @ 6:00 pm
Pam Harris, Chief Deputy Director, California EDD
Pam Harris, Chief Deputy Director, California EDD
According to the California Employment Development Department, California will be a FUTA tax credit reduction state in 2011.

Standard Credit Rates Is 5.4% for 2011

Generally, employers who pay their state unemployment tax by the due date for filing Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, receive a credit 5.4% against their Federal Unemployment Tax Act (FUTA) tax. This credit is claimed on Form 940.

FUTA Wage Base Is $7,000 for 2011

The FUTA wage base is $7,000 for 2011.

Employers in Certain States Are Subject To Credit Reduction

Federal law provides for a reduction in the FUTA tax credit when a state has outstanding federal loans for two years. The credit reduction is calculated on Schedule A of Form 940.

California Is Subject To Credit Reduction for First Time

Since California was not a credit reduction state in 2010, the credit reduction rate will be 0.3% for 2011. California employers will receive a reduced credit of 5.1% for 2011. For the first six months of 2011, the FUTA tax rate was 6.2% and for the last six months of 2011, the FUTA tax rate has been 6.0%. Therefore, California employers will pay an effective rate of 1.1% for the first six months of 2011 and 0.9% for the last six months of 2011. The credit reduction will continue to increase by 0.3 percentage points each year until the loan is paid, e.g., 0.6% in 2012, 0.9% in 2013, etc.

Vision Payroll Will Calculate the Credit Reduction for All California Clients

Contact Vision Payroll if you have any further questions on the California credit reduction.

November 20, 2011

California Releases California Employer’s Guide 2012 (DE 44)

Pam Harris, Chief Deputy Director, California EDD
Pam Harris, Chief Deputy Director, California EDD
The California Employment Development Department (EDD) has announced the release of the California Employer’s Guide 2012 DE 44 Rev. 38 (the Guide). The Guide is published to help employers understand their rights and responsibilities.

Information Presented in Chronological Sequence

Information in the Guide is presented in a chronological sequence, beginning with what employers need to know or do first, such as who is an employer, when to register, who is an employee, and what are wages.

California Generally Follows Federal Law

To simplify reporting requirements, the EDD follows federal tax guidelines and due dates whenever possible; however, California laws and rates may differ from federal laws and rates. The EDD administers payroll tax reporting laws according to the California Unemployment Insurance Code (CUIC) and California Code of Regulations (CCR).

The Guide Is an Important Resource

Regardless of the size of the business, the Guide is an important resource on the procedures required for compliance with California payroll tax laws. It clarifies both the provisions of the CUIC and CCR and their application to the business.

The Guide Provides General Information

The Guide provides general information that applies to the majority of employers. The Guide provides references to additional information on specialized topics. Information on detailed or complex issues that only apply to a small number of employers is not included in the Guide.

Contact Vision Payroll Today

Contact Vision Payroll if you have further questions on the Guide.

December 27, 2010

Kings, Los Angeles, Santa Barbara, Inyo, & San Diego County Employers May Request 60-Day Extension

Kings, Los Angeles, Santa Barbara, Inyo, & San Diego County Employers May Request 60-Day Extension
Kings, Los Angeles, Santa Barbara, Inyo, & San Diego County Employers May Request 60-Day Extension
According to the California Employment Development Department (EDD), employers in the counties of Kings, Los Angeles, Santa Barbara, Inyo, & San Diego directly affected by the winter storms may request up to a 60-day extension of time from EDD to file their State payroll reports and/or deposit State payroll taxes without penalty or interest. This extension may be granted under Section 1111.5 of the California Unemployment Insurance Code (CUIC).

Kings, Los Angeles, Santa Barbara, Inyo, & San Diego Counties in a Declared State of Emergency Due to Winter Storms

Written request for extension must be received within 60 days from the original delinquent date of the payment or return to file/pay.

Vision Payroll Can Assist Kings, Los Angeles, Santa Barbara, Inyo, & San Diego County Clients with Extension Application

Contact Vision Payroll if you’ve been affected and need to file the extension request.

December 25, 2010

Kern, Orange, Riverside, San Bernardino, San Luis Obispo, & Tulare County Employers May Request 60-Day Extension

Kern, Orange, Riverside, San Bernardino, San Luis Obispo, & Tulare County Employers May Request 60-Day Extension
Kern, Orange, Riverside, San Bernardino, San Luis Obispo, & Tulare County Employers May Request 60-Day Extension
According to the California Employment Development Department (EDD), employers in the counties of Kern, Orange, Riverside, San Bernardino, San Luis Obispo, & Tulare directly affected by the winter storms may request up to a 60-day extension of time from EDD to file their State payroll reports and/or deposit State payroll taxes without penalty or interest. This extension may be granted under Section 1111.5 of the California Unemployment Insurance Code (CUIC).

Kern, Orange, Riverside, San Bernardino, San Luis Obispo, & Tulare Counties in a Declared State of Emergency Due to Winter Storms

Written request for extension must be received within 60 days from the original delinquent date of the payment or return to file/pay.

Vision Payroll Can Assist Kern, Orange, Riverside, San Bernardino, San Luis Obispo, & Tulare County Clients with Extension Application

Contact Vision Payroll if you’ve been affected and need to file the extension request.

November 14, 2010

California Announces 2011 UI, ETT, and EDI Rates

Governor Arnold Schwarzenegger
Governor Arnold Schwarzenegger
The California Employment Development Department (EDD) recently released the 2011 UI, ETT, and SDI rates. An historical compilation of prior year rates is available in Form DE 3395.

2011 UI, ETT, and SDI Rates

The UI rate schedule in effect for 2011 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 2011

The Employment Training Tax (ETT) rate for 2011 is 0.1%. The UI and ETT taxable wage limit remains at $7,000 per employee per calendar year.

SDI Rate Is Set at 1.2%

The State Disability Insurance (SDI) withholding rate for 2011 is 1.2%. The taxable wage limit is $93,316 for each employee per calendar year. The maximum to withhold for each employee is $1,119.79.

Notices Will Be Mailed December 31

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 31. Employers will have 60 days from the December 31 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.

January 18, 2010

Humboldt County Employers May Request 60-Day Extension

Filed under: News — Tags: , , , , , — Vision @ 12:16 pm

According to the California Employment Development Department (EDD), employers in the county of Humboldt directly affected by the damage resulting from the earthquake may request up to a 60-day extension of time from EDD to file their State payroll reports and/or deposit State payroll taxes without penalty or interest. This extension may be granted under Section 1111.5 of the California Unemployment Insurance Code (CUIC). Written request for extension must be received within 60 days from the original delinquent date of the payment or return to file/pay. Contact Vision Payroll if you’ve been affected and need to file the extension request.

December 6, 2009

Santa Cruz County Employers May Request 60-Day Extension

Filed under: News — Tags: , , , , , , — Vision @ 6:25 pm

According to the California Employment Development Department (EDD), employers in the county of Santa Cruz directly affected by the damage resulting from the mudslides and flooding may request up to a 60-day extension of time from EDD to file their State payroll reports and/or deposit State payroll taxes without penalty or interest. The written request for extension must be received within 60 days from the original delinquent date of the payment or return to file/pay. Contact Vision Payroll if you’ve been affected and need to file the extension request.

October 27, 2009

San Bernardino County Employers May Request 60-Day Extension

Filed under: News — Tags: , , , , , — Vision @ 10:53 pm

According to the California Employment Development Department (EDD), employers in the county of San Bernardino directly affected by the damage resulting from the “Sheep Fire” may request up to a 60-day extension of time from EDD to file their State payroll reports and/or deposit State payroll taxes without penalty or interest. The written request for extension must be received within 60 days from the original delinquent date of the payment or return to file/pay. Contact Vision Payroll if you’ve been affected and need to file the extension request.

September 21, 2009

Imperial County Employers May Request 60-Day Extension

Filed under: News — Tags: , , , , , — Vision @ 8:46 pm

According to the California Employment Development Department (EDD), employers in the county of Imperial directly affected by the damage resulting from the severe storm may request up to a 60-day extension of time from EDD to file their State payroll reports and/or deposit State payroll taxes without penalty or interest. The written request for extension must be received within 60 days from the original delinquent date of the payment or return to file/pay. Contact Vision Payroll if you’ve been affected and need to file the extension request.

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