California has four state payroll taxes which are administered by the Employment Development Department (EDD).
- Unemployment Insurance (UI) and Employment Training Tax (ETT), which are employer contributions.
- State Disability Insurance (SDI) and Personal Income Tax (PIT), which are withheld from employees’ wages.
Wages are generally subject to all four payroll taxes. However, some types of employment are not subject to payroll taxes and/or PIT withholding. For more information, refer to Information Sheet: Types of Employment (DE 231TE) (PDF).