As a reminder to California employers and businesses with employees in the state, the Employment Development Department (EDD) has updated the California Employer’s Guide (DE 44) for 2025.

• The EDD has made it easier to file and pay with e-Services for Business, available 24/7.

• Employers can file and adjust returns, make payments, update their account information, and more.

This guide provides essential information on employment taxes, wage reporting, and payroll tax deposits, such as:

• Electronic Reporting and Payment: All employers must now electronically submit employment tax returns, wage reports, and payroll tax deposits to the EDD.

• State Information Data Exchange System (SIDES): Employers can opt to receive and respond to the EDD Notice of Unemployment Insurance Claim Filed electronically using SIDES.

• New Employee Registry (NER): Employers must report all newly hired or rehired employees to the NER within 20 days of their start date.

• Payroll Tax Seminars: The EDD offers no-cost seminars to help employers comply with state payroll tax laws.

• Unemployment Insurance (UI): The 2025 taxable wage limit is $7,000 per employee, with a maximum weekly benefit amount of $450. The UI tax rate for new employers is 3.4% for two to three years.

• State Disability Insurance (SDI): The 2025 SDI withholding rate is 1.2%, covering both SDI and Paid Family Leave benefits. Starting January 1, 2024, there is no SDI taxable wage limit.

For additional information:

• EDD – Employer’s Guides – Historical
• EDD – California Employer’s Guides – DE 44

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