Tag Archives: california

Governmental

Breakdown of CA State Payroll taxes

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Anyone who is considered an employer in California must comply with payroll tax obligations, whether or not you may object to them! Yes, some of the programs they fund have questionable track records of abuse by workers and mismanagement by the CA E.D.D. Nevertheless, this article is a good summary provided by Gehres Law Group. Excerpt below.

There are four payroll tax programs in California which are administered by the Employment Development Department. These payroll taxes include:

  • Unemployment tax: Unemployment tax must be paid on the first $7,000 in wages employers pay to each employee during the calendar year. Employers pay this tax on a quarterly basis. Tax rates vary based on factors including whether the employer is a new employer as well as the employer’s experience with the unemployment program. Taxes could vary between 1.5% and 6.2%. This tax funds unemployment payments for workers who are laid off from their jobs.
  • Employment training tax: Employment training tax is charged at a rate of .1% of the first $7,000 in wages employers pay to employees during each calendar year. The tax provides funding to train employees in industries necessary to keep California businesses competitive. Employers pay this tax.
  • State disability insurance: State disability insurance is funded by a tax on employee wages. Employees pay this tax. Employers must withhold .9% of the first $110,902 in wages that are paid to employees during each calendar year. The taxes fund short-term disability payments and paid leave for eligible workers who take time off to care for a new child or for a sick child, parent, grandparent, sibling, spouse, or other close relative
  • California personal income tax withholding: California personal income taxes are paid by workers on income they earn within the state of California. Employers must withhold an appropriate amount of money from an employee’s entire salary based on the information provided by employees on their W-4 forms.

Employers are responsible for the payment and/or collection of each of these payroll taxes as well as for the timely submission of payroll tax forms and payments of all taxes due.

Real example of California and Federal Taxes Withheld by Employee and Employer
Food Industry

California Food Processing Industry

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Introduction California is the top agricultural state in the nation, a position it has held for 50 years. As a natural result, California is also the largest food processing employer in the United States. With an enormous variety of crops, great growing conditions and increasing demand for prepared food products, California is the center for food processing, shipping $50 billion worth of food products.

Definition Food processing is an umbrella term used to describe all the activities of manufacturing food and beverages for human consumption, as well as prepared feeds for animals. California processing includes fruits and vegetables, baked goods, meats, dairy products, sugar and confections, beverages, and fats and oils. The industry is defined as food and kindred products by Standard Industrial Classification (SIC) code 20.

Size and Location Food processing firms in California are as widely spread across the state as the farmlands that supply them. Food manufacturers purchase most of their perishable raw materials from area growers, ensuring the ultimate in freshness. California is the top producing state for many fruit and vegetable crops, providing the basis for myriad fresh, canned and frozen products. Correspondingly, preserved fruits and vegetables is the largest industry group in California food processing, providing a quarter of the state’s food processing jobs. Beverage manufacturing provides 19 percent of the food processing employment in California, led by the high value-added wine production. Bakery products in California provide 13 percent of the state’s employment in the manufacture of those products. California also has above-average representation in canned and cured seafood processing located in the coastal counties, and pasta production in Los Angeles, Orange and Alameda counties. 

Economic Importance California produces a wide variety of food products and is the leading state in many food categories. California surpasses Wisconsin in milk production. California is the only producing state of such specialty foods as almonds, artichokes, raisins, prunes, olives, dates, figs and pistachios. California food processing employed 183,300 people in 1999, composing 11 percent of the nation’s total.