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California is the most complex payroll state in the US — mandatory SDI with no wage base cap, CFRA leave protections, meal and rest break premiums, and the most active labor enforcement in the country. Rippling automates the full compliance stack.
California is the largest state economy in the US and the most complex payroll jurisdiction. Its employment laws are among the most employee-protective in the world — the California Labor Code, CFRA, SDI, PAGA, AB 5, and SB 1162 create obligations that significantly exceed federal requirements in virtually every area.
The California EDD administers unemployment insurance and SDI/PFL. The FTB administers state income tax. The DIR/DLSE enforces labor standards. Workers' comp is state-administered. Each requires separate registration and ongoing compliance.
Rippling's California payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 0.6% | Net rate on first $7,000 wages per employee. |
| CA SUTA | 1.5%–6.2% | On first $7,000 wages. New employer rate: 3.4%. |
| Social Security (OASDI) | 6.2% | On wages up to $168,600. |
| Medicare (HI) | 1.45% | No wage base limit. |
| Workers' Comp Insurance | Variable | State-administered. Rates by classification code. ~1.5–2.5% of payroll for office workers. |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | 10%–37% | Per W-4 elections. Progressive brackets. |
| CA State Income Tax | 1%–13.3% | Progressive. Highest bracket 13.3% + 1% Mental Health surcharge over $1M. |
| Social Security (OASDI) | 6.2% | On wages up to $168,600 (2024). |
| Medicare (HI) | 1.45% | No wage base limit. Additional 0.9% surtax on wages over $200,000. |
| CA SDI (State Disability Insurance) | 1.1% | No wage base limit from 2024. Covers both SDI and PFL. |
| CA Income (Single Filer) | CA Rate |
|---|---|
| Up to $10,756 | 1% |
| $10,757–$25,499 | 2% |
| $25,500–$55,866 | 4%–6% |
| $55,867–$70,606 | 8% |
| $70,607–$360,659 | 9.3% |
| $360,660–$721,314 | 10.3%–11.3% |
| Over $721,314 | 12.3% (+ 1% Mental Health surcharge over $1M) |
CA SDI (1.1%) applies to all wages with no cap from January 2024.
Final Pay (Labor Code §201-203): Involuntary: immediately. Voluntary with 72+ hours notice: last day. Voluntary without 72 hours notice: within 72 hours. Waiting time penalties: 1 day of pay per day late, up to 30 days.
PTO Payout: All accrued unused PTO must be paid out. Use-it-or-lose-it is prohibited in California.
WARN: Federal WARN (60 days, 50+ employees) + CA WARN (60 days, 75+ employees).
Statutory: Workers' comp, unemployment insurance (EDD), CA SDI/PFL. No federal paid leave beyond FMLA.
Market standard: Comprehensive medical/dental/vision (employer covers 70%+), 401(k) with 3-6% match, 15-20 days PTO, 10-15 paid holidays. Tech: equity, remote/hybrid, FSA/HSA, EAP. Many CA employers add supplemental SDI top-up and enhanced parental leave above CFRA minimums.
California's CFRA provides 12 weeks of job-protected leave per year for employers with 5+ employees — a much lower threshold than federal FMLA (50+ employees). CFRA also covers caring for domestic partners, grandparents, grandchildren, and siblings. Rippling tracks CFRA eligibility and leave balances separately from federal FMLA.
California's Paid Family Leave (PFL), funded by employee SDI contributions, pays 60-70% of wages for up to 8 weeks for baby bonding, caring for a seriously ill family member, or military assist leave. From 2024, SDI contributions (1.1%) have no wage base cap, meaning high earners contribute significantly more. Rippling tracks SDI/PFL withholding and coordinates with EDD for leave claims.
California's SB 1162 (effective January 1, 2023) requires employers with 15+ employees to include pay ranges in job postings. Employers of any size must provide pay scale information to applicants on request. Employers with 100+ employees must submit annual pay data reports to the CRD by race, ethnicity, and sex. Rippling's California payroll includes pay transparency compliance prompts.
Yes. Rippling handles CA SDI/PFL withholding (no wage base cap from 2024), SUTA filings with EDD, CFRA/FMLA leave tracking, 9-item CA pay stub requirements, and DE 9/DE 9C quarterly reporting. thePeopleStack configures California payroll including EDD account setup and pay transparency compliance.
