What is the California Employment Development Department (EDD)?
It is a department of the government that provides services to businesses, workers, and job seekers such as assisting employers with labor needs, administering federally-funded workforce investment programs, assisting disadvantaged recipients in becoming self-sufficient, supporting state activities and benefit programs by collecting and administering employment-related taxes, and more. The EDD serves as one of the nation’s largest tax agencies through the collection of payroll taxes.
What is EDD tax?
California EDD administers four state payroll taxes:
- Unemployment Insurance (UI) and Employment Training Tax (ETT): both are employer contributions
- State Disability Insurance (SDI) and Personal Income Tax (PIT): both are withheld from employees’ wages
UI tax program: provides temporary payments to people unemployed through no fault of their own.
ETT tax program: provides funds to train employees in targeted industries to make California businesses more competitive.
SDI tax program: provides temporary benefit payments to workers for non-work-related illness, injury, or pregnancy.
PIT tax program: provides resources needed for California public services, such as schools, public parks, roads, health, and human services.
EDD (Employment Development Department) – California Payroll Taxes
The EDD is California’s largest tax collection agency, offering a wide variety of services under the Job Service, Unemployment Insurance, State Disability Insurance, Workforce Investment, and Labor Market Information programs. It also handles the audit and collection payroll taxes and maintains employment records for more than 18 million California workers.
California’s Employment and Development Department (EDD) enforces collection against California’s employers for payroll taxes, which includes California Unemployment Insurance and Employment Training taxes. Contact us today with any questions concerning the EDD, EDD tax relief, and California payroll taxes.