California Payroll Guide, 2021 Edition
California Payroll Guide
California Payroll Guide gives payroll professionals guidance on what steps to take to comply with California laws and regulations governing payroll. Extensive coverage is given to the payroll implications of California's unique wage and hour laws and how to handle the different types of compensation offered to employees with
regard to California income tax, unemployment insurance, and disability insurance.
Detailed information is provided regarding California's rules on computing and paying payroll taxes, how to handle garnishments and other deductions, workers' compensation insurance and what records must be kept, as well as the benefits and disadvantages of the direct deposit of employees' wages. In addition to explaining the unique wage and hour laws in detail, California Payroll Guide is replete with examples that illustrate necessary calculations and includes tips and solutions about how employers handle California's requirements.
The 2021 Edition of California Payroll Guide is designed to bring payroll professionals up to date on changes to California legislation, rulings, opinions, and court decisions that have occurred since the 2020 Edition.
Note: Online subscriptions are for three-month periods.
Highlights include the following:
- Website links have been provided to all California State mandates related to the COVID-19 Pandemic. These mandates are expected to be temporary until such time as the pandemic resolves itself
- Assembly Bill 5 became effective on January 1, 2020. It expands the use of the "ABC test" to determine if workers in California are employees or independent contractors
- On January 1, 2020, the Internal Revenue Service implemented a new Form W4 for income tax withholding purposes. California no longer allows the Form W4 to be used for personal income tax withholding purposes
- California's 2021 minimum wage and meals or lodging limits
- Updates to the 2021 minimum wage requirements for the cities of San Jose, Oakland, San Francisco, and Emeryville, and for computer professionals, and licensed physicians and surgeons
- Senate Bill 3 by Senator Mark Leno (D-San Francisco), increasing the minimum wage to $14.00 per hour on January 1, 2021, for businesses with 26 or more employees, and providing for further rises each year until the minimum wage reaches $15.00 per hour in 2022. The bill also recognizes the contributions of small businesses—those with 25 or fewer employees—to California's economy and allows additional time for these employers to phase in the increases
- Minimum and maximum temporary total disability rates for 2021
- Important due dates for holder reporting on abandoned wages
- Examples on how to calculate regular rate of pay for overtime premium rates and clarification on the definition of "workweek" and "workday"
- For the City of San Francisco employers, gross receipts tax and payroll expense tax 2020 updates and the recent status on Proposition F
- San Francisco's Health Care Security Ordinance 2021 Expenditure Rates
- Updated daily interest factors per period for calculating the interest due on delinquent amounts
- Updated Publication DE 44, California Employer's Guide 2021, California Withholding Schedules for 2021, and Exhibits
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