Even though the economy has begun to recover, unemployment rates in California are above 11%, a quite important number if we compare it with September 2019 where the percentage was 3.5%. California’s unemployment insurance (UI) program provides weekly unemployment insurance payments to workers who lose their job through no fault of their own. California’s UI program is financed by employers who pay unemployment taxes on up to $7,000 in wages paid to each worker. The actual tax rate varies for each employer, depending in part on the amount of UI benefits paid to former employees. The UI tax works similar to any other insurance premium, and an employer may earn a lower tax rate when fewer claims are made on the employer’s account by former employees.
Covered Employers
Employers that employ one or more employees and pay wages in excess of $100 in a calendar quarter are covered by California’s UI law. Wages are compensation for services performed, including, but not limited to, cash payments, commissions, bonuses, and the reasonable cash value of nonmonetary payments for services, such as meals and lodging.
Exemptions
California’s UI law exempts: – Certain payments from the definition of wages (for example, accident disability payments received under workers’ compensation). – Certain services from the definition of employment (for example, family employment).
Covered Employees
An individual who files for UI benefits must meet the following specific eligibility requirements: – Enough wages were received during the base period to establish a claim. – Be totally or partially unemployed through no fault of his or her own. – Physically able to and available for work. – Ready and willing to immediately accept work. – Actively looking for work each week benefits are claimed. – Approved for training before training benefits can be paid.
Reporting and Paying the Tax
California’s UI program is funded through payroll taxes paid by employers. California employers are required to electronically submit employment tax returns, wage reports, and payroll tax deposits to the Employment Development Department (EDD) and pay the UI tax on a prescribed schedule. Our HR Consulting Services include: HR Outsourcing, Regulatory Compliance Solutions, and Supplemental HR Support (for in-house teams). Additionally, we offer Training & Professional Development, and Workplace Investigations. Contact us by emailing [email protected] or by calling (800) 949-2049.
Why choose California Labor Solutions?
California Labor Solutions (CLS) is one of the only HR firms licensed* to conduct workplace investigations in California. We serve private businesses and public-sector organizations throughout the state. We have conducted hundreds of neutral, objective, and unbiased workplace investigations for employee complaints relating to allegations of discrimination, harassment, retaliation, and various types of employee misconduct with the utmost quality, detail, and efficiency.
*California Private Investigator License Number 26311.
Disclaimer:
Please note that the updates, advisories, and regulations we receive from the promulgating agency often contain ambiguities and/or are often amended, modified, or updated. This material/article/email does not contain any legal advice. The information and opinions expressed herein are based on our reasonable interpretation of the issuing agency’s publication at the time the opinion is expressed and is, therefore, subject to change based on further developments. The effect of the opinions expressed may be different based on your particular circumstances, and it is recommended that you not rely upon these general opinions prior to obtaining a consultation with your legal and/or financial advisors.