Employer of Record in California: what it costs in 2026
Every US employer pays the same federal payroll taxes. What changes in California is the state unemployment charge, whether there is a paid leave contribution and the wage floor. The figures below are for the 2026 tax year and were checked against California Employment Development Department on 2026-09-05.
California at a glance
- Unemployment wage base
- $7,000
- New-employer rate
- 3.4%, plus a 0.1% employment training tax
- Employer paid leave
- SDI and paid family leave run at 1.3% but are employee-paid
- Minimum wage
- $16.90
Employer cost on a $100,000 salary
Statutory employer taxes only. Provider fees, benefits, workers compensation and any bonus sit on top.
| Charge | Basis | Per year |
|---|---|---|
| Social Security | 6.2% of the first $184,500 | $6,200 |
| Medicare | 1.45% of all pay | $1,450 |
| Federal unemployment tax | 0.6% of the first $7,000 after the state credit | $42 |
| State unemployment insuranceCalifornia | 3.4% of the first $7,000 | $238 |
| Employment training taxCalifornia | 0.1% of the first $7,000 | $7 |
| Total employer taxes | $7,937 | |
Federal floor and California charges, separated
Open a line to see what makes it up and the source behind it, on the $100,000 salary above.
The same employee at other salaries
| Salary | Federal | California | Total taxes | Share of salary |
|---|---|---|---|---|
| $60,000 | $4,632 | $245 | $4,877 | 8.1% |
| $100,000 | $7,692 | $245 | $7,937 | 7.9% |
| $150,000 | $11,517 | $245 | $11,762 | 7.8% |
The share of salary falls as pay rises because unemployment tax stops once the wage base is reached, while Medicare keeps running on every dollar.
The federal floor, identical in every state
- Social security
- 6.2% on the first $184,500 of pay
- Medicare
- 1.45% with no cap (a further 0.9% is employee-paid above $200,000)
- Federal unemployment
- 6.0% gross, 0.6% after the full state credit, on the first $7,000
Source: IRS Publication 15 (2026) and the Social Security Administration. Reviewed 2026-09-05. State figures: California Employment Development Department, reviewed 2026-09-05. This page is general information, not legal or tax advice. See our methodology.
Where these figures come from
Each line says who published the figure and how firm it is. We never blend an official figure with an estimate.
| Figure | Published by | Kind of source | How firm |
|---|---|---|---|
| Unemployment wage base and rate | California Employment Development Department | Official government figures | Confirmed on the official page |
| Employer paid leave | California Employment Development Department | Official government figures | Confirmed on the official page |
| Minimum wage | California Department of Industrial Relations | Official government figures | Confirmed on the official page |
| Federal payroll taxes | IRS Publication 15 (2026) and the Social Security Administration | Official government figures | Confirmed on the official page |
Unemployment wage base and rate
Employer paid leave
Minimum wage
Employment training tax
Hiring in California through a provider
The taxes above are the same whichever provider you use. What differs is the monthly fee and whether the provider is already registered in California.
Other states we cover in detail
Related
FAQ
On a $100,000 salary the statutory employer cost works out at about $7,937 a year, of which $7,692 is federal and $245 is charged by California. Provider fees, benefits and workers compensation sit on top of that.
California charges a new employer 3.4% on the first $7,000 of each employee's pay.
SDI and paid family leave run at 1.3% but are employee-paid.
$16.90. A county or city inside the state can set a higher floor, so check the local rate for the exact work location before you set pay.
Yes. Most international providers hold registrations in all 50 states, but registration and the first payroll run in a new state can take a couple of weeks, so confirm the provider is already set up in California before signing.