Country Payroll Guide USA – California

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Key Facts

Capital
Sacramento
Date format
mm/dd/yyyy
Currency
United States Dollar (USD)
VAT
the standard rate is 7.25%

Contributions

Employers

Unemployment (State)
Unemployment (State) - 1.5% to 6.2%
Unemployment - New Employer (State)
Unemployment - New Employer (State) - 3.4%
FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2%
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45%
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6%
Employment Training Tax
Employment Training Tax - 0.1% on the first $7000
Total Employment Cost
Total Employment Cost - Up to 21.79%

Employees

FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2%
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45%
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6%
State Disability Insurance
State Disability Insurance - 1.2%
Total Employee Cost
Total Employee Cost - Up to 15.75%

Minimum Wage

Minimum Wage
The minimum wage in California is 13 to 14 USD per hour.

Payroll

Payroll Cycle
Bi-Monthly
13th Salary

There are no statutory laws on 13th salary.

Income Tax

Single Filers tax rate (Federal) (1)
0 - 9,875 USD - 10%
Single Filers tax rate (Federal) (2)
9,876 - 40,125 USD - 12%
Single Filers tax rate (Federal) (3)
40,126 - 85,525 USD - 22%
Single Filers tax rate (Federal) (4)
85,526 - 163,300 USD - 24%
Single Filers tax rate (Federal) (5)
163,301 - 207,350 USD - 32%
Single Filers tax rate (Federal) (6)
207,350 - 518,400 USD - 35%
Single Filers tax rate (Federal) (7)
Over 518,401 USD - 37%

Working Hours

General Working Hours

40 hours per week.

Overtime

Overtime must be paid at a minimum of 150% of the employee’s regular wage.

Leave

Paid Time Off

Employers are not required to provide employees paid vacation days. However, if the employer decides to include paid vacation, any unused days should be paid in lieu.

Public Holidays

11 public holidays.

Sick Days

The minimum amount of paid sick leave is 3 days. Employees earn 1 hour of paid sick leave for every 30 hours of work. Any unused sick leave can transfer to the following year. However, an employer is allowed to set a 6-day cap on the total accrued paid sick leave

Maternity Leave

Maternity leave falls under the FMLA.

Paternity Leave

Paternity leave falls under the FMLA.

Parental Leave

Under the federal Family and Medical Leave Act (FMLA), employees who have worked for at least one year, with at least 1,250 hours completed in the 12 months prior to leaving, are entitled to 12 weeks’ leave. This covers biological, adopted, or foster children. This leaves covers employers who have at least 20 employees in a 75-mile radius.

The California Family Rights Act (CFRA) extends family and medical leave to employees of employers with only five or more employees. It also extends the family members for whom an employee can take leave to care for to include grandparents, grandchildren, and siblings, and extends the “qualifying exigency” to include military duty by an employee’s spouse, domestic partner, child, or parent. The CFRA also extends “baby bonding” leave taken by both parents working at the same company. Leave is 12 weeks long and unpaid.Pregnancy Disability Leave: up to 4 months of leave for employees who have suffered a disability related to pregnancy.

Other Leave

Work-related injury leave: All employers must provide workers’ compensation benefits to employees. If an employee is injured at work, they must report the injury within 30 days of the accident. Once the injury is reported the employer has a day to provide the employee with a claim form. Once this form is completed, it will be given to the employee’s compensation insurance company.

Termination

Termination Process

California is an At-Will State, meaning termination procedures are only required if they are in the employee’s collective bargaining agreement.

Notice Period

Notice period is not required.

Severance Pay

Employers are not required to provide severance pay to their employees.

Probation Period

California does not have a mandatory probationary period for new employees.

Visa

Employment Visa

In general, work visas are based on a specific offer of employment. In most cases, a petition must be filed and approved by the United States Citizenship and Immigration Services (USCIS) before applying for the visa at a U.S. Embassy.