Hire in California: payroll, tax, and employment law
Five state-specific guides for US-based and international employers hiring in California in 2026.
· California, United States hub
What do you need to know to hire in California?
California sits inside the federal employment framework (FLSA, FICA, FUTA) but layers its own state income tax, unemployment insurance, worker-classification test, leave entitlements, and wage-and-hour rules on top. Each of the five guides below covers one layer in detail.
Employers running US payroll for the first time often underestimate the per-state work. California has its own withholding forms, its own SUI wage base, and (in many cases) its own classification test that differs from the IRS common-law test. Get any one wrong and you face state-level fines on top of federal exposure. The guides linked below are the California-specific facts you need before your first hire.
California state employment guides
State income tax & unemployment insurance
Brackets, withholding forms, SUTA wage bases, and quarterly filing.
Termination & at-will exceptions
Final paycheck timing, public-policy exceptions, WARN, severance triggers.
Worker classification (state test)
Which test the state uses, ABC vs common-law, exposure if you get it wrong.
Paid family & sick leave
State PFML status, accrual rates, eligible reasons, employer contribution.
Wage, overtime & meal break law
State minimum wage above federal floor, OT triggers, meal/rest break rules.
How does Teamed hire in California for you?
Teamed becomes your legal employer of record in California for from $599 per employee per month, with zero FX mark-up in any currency. Payroll, statutory benefits, and the full California and federal compliance stack run on one platform.
Real HR and legal experts handle your California hires, from the first offer letter through every statutory filing and payroll run. An actual person, not a chatbot or a pooled queue. There's no setup fee and no exit fee, and statutory employer cost passes through at cost, itemised on every invoice.
EOR payroll, contractor onboarding, and entity setup all live on one platform. A California hire who converts from contractor to employee keeps their full record, and the same employee can later graduate from EOR to your own US entity without re-onboarding. Run the Crossover Calculator to see the month the model flips.
The federal baseline: IRS payroll tax guidance and US DOL state minimum wages. California state-specific rules: California Department of Industrial Relations. Start from the United States overview for the federal baseline that applies in every state.
California is not a state you comply with. It is five you comply with at once.
Its own withholding forms, an uncapped 1.3% SDI line, a paid-sick floor of 40 hours, and an ABC test that rejects the good-faith defence federal law allows.
Five regimes, one payroll, and the penalties stack. The five guides are the map.
, Tom Price-Daniel, Teamed
