Reddit reviews California & Federal Combination Labor Law Posters (New)

Oh good. That makes it easy for me.

First, you'll need to register as an employer if you haven't already: Federal EIN, California Employer Registration

Next, you'll need workers compensation: you can get this from your insurance broker or through the state run insurance program State Fund

You will need to post all the required Federal and State notices. It's easiest to just order a combination poster. Buy one from Amazon - much cheaper than Staples or Borders for the same poster. I like this one

Now on to taxes:

You'll need to withhold the proper taxes from employee pay each pay period: Federal Income Tax (varies), Social Security (6.2%), Medicare (1.45%), CA Personal Income Tax (varies), & CA State Disability Insurance (1.0%).

There are also employer payroll taxes that you'll be responsible for: Social Security (6.2%), Medicare (1.45%), FUTA (0.6%), CA Unemployment (for a new employer, your rate will be 3.4%), CA Training Tax (0.1%)

Since you will only have a few employees, you will likely be a quarterly payer (though if their salaries are high, you may need to make monthly Federal and State deposits). You will need to file a Federal 941 and a California DE9/DE9C each quarter. Annually, you will also need to file a Federal 940 and pay your FUTA liabilities (though if your FUTA liability ever hits $500 throughout the year, you must deposit that amount).

I know this may seem a little overwhelming, which is why most people use a service, but it's not as much as it seems. If you want full service, obviously, you should go with me :) but if you're looking for an in-house option, Quickbooks Online Payroll option is fantastic (just make sure you use the online service, not the software add-on (Quickbooks will autobill you each year for a new license $400 for the software addon). I've heard good things about zenpayroll, but I don't know anyone who's actually used them.