California Tax Agency

You will need to register with this agency in order for Gusto to file and pay your taxes.

• California Employment Development Department (EDD)

Register a new company

1. First enroll as a New User with the EDD e-Services for Business by clicking Enroll for a username and password.
2. Once you are enrolled, log into your e-Services account to apply for an Employer Payroll Tax Account Number.
3. Click New Employer and select Register for Employer Payroll Tax Account Number.
4. Complete the registration process. You will be asked for information about your business and its operations in California.
   • Here are a few tips for certain questions that may affect your payroll with Gusto:
   • “First quarter your wages exceeded $100.” You may choose the prior quarter or current quarter. Gusto will only begin filing your taxes once you run a payroll with California wages. If you choose a prior quarter, you will be responsible for filing returns with the agency on your own in the interim.
   • “Taxpayer Representative Contact Information." Do not add Gusto as a Taxpayer Representative.  
   • "Are you an authorized Payroll Agent?" Please select No.
   • "Does this business use professional assistance for payroll reporting?" Please select No.
   • "Agency where you want your tax mailings sent?" Please enter your own company name and mailing address. This ensures that your company receives any important communications from the EDD.

Once complete, your request will be sent to the EDD: 

• If you registered online and there is no information missing from your registration, you will get an account number immediately.
• If there's an issue with the information that has been provided, then the turnaround time is three days (provided the employer provides a response to any requests timely).
• Registration can take up to 7 days if the request was submitted by paper.
• Registration for non-profit employers can take a little longer if the organization does not provide their non-profile paperwork with their registration (i.e. your 501(c) determination letter from the IRS).
  • To expedite issuance of your account number, provide all requested documentation to the agency.

You can log back into e-Services to check on the status of your registration.

Unemployment rate (SUI)

The new employer rate for unemployment tax in California is 3.4%.