Prior to issuing payments to employees, ensure that you've completed the payroll registration process in the relevant state of their employment. This might take a few weeks, so beginning early is advisable to acquire the necessary tax account details for payment purposes.
Niural collaborates with Middesk to assist you in the state registration process. For additional information, please explore the details provided below.
Let Niural register for you
Niural partners with Middesk to help you register your business in new states.
How it works
On adding a new work address in a different state and recruiting a new employee who has been allocated a work address in that state, you can access registration support within Niural.
The pricing is subject to change based on the state.
Here's an overview of the procedure:
1. Provide essential business details.
2. Niural and Middesk will verify the accuracy of the information.
3. Registration applications are normally sent within 3-5 business days.
4. Look out for registration details from Middesk in the mail.
5. Middesk can guide you through entering any data they don't handle on your behalf through Niural.
Initiate the state tax registration process
- Sign in to Niural as an employer.
- Navigate to the Company tab.
- Select Tax setup.
- Under “[State name] Tax Setup”, click Let Niural register for you.
Note: Niural can only register for you if you don't yet have a state account already.
- Enter company information on Middesk.
- Once you submit your order, we will send you email updates regarding the status. The total cost of your order will be added to your upcoming monthly invoice.
- Check the status of your order
Once your order is finalized, you will receive emails from both Niural and Middesk. These emails will outline the subsequent actions, including:
1. Reviewing registration information.
2. Any additional state-specific instructions.
Before your order is finalized, you can use the link provided in the state registration confirmation email from Niural to track the progress of your order.
Cancel your order
If an order is already completed, you'll need to contact Middesk to cancel.
If an order is in progress you can email us at support@niural.com.
You'll be refunded, but it can take a few business days to process.
Register with the EDD
To get started, visit the EDD's e-services for businesses website and enroll for a username and password by clicking "Enroll" on the right side of the page. Enter your personal details and proceed.
Once your account is created, sign in to your E-services for Businesses profile and select "New Customer." Then, choose "Register for Employer Payroll Tax Account Number."
You'll need to provide information about your business and its operations in California. Here are some tips for specific questions that may impact your payroll with Niural:
- "First quarter your wages exceeded $100": Niural will start filing your taxes once you run a payroll with California wages. You can choose the prior quarter or the current one. If you choose a prior quarter, you'll be responsible for filing returns with the agency in the meantime.
- "Taxpayer Representative Contact Information": Do not add Niural as a Taxpayer Representative.
- "Are you an authorized Payroll Agent?": Select "No."
- "Does this business use professional assistance for payroll reporting?": Select "No."
- "Agency where you want your tax mailings sent?": Enter your company's name and mailing address to ensure you receive important communications from the EDD.
Submit your completed online registration application. To expedite the process and receive your account number quickly, provide all requested documentation upfront.
For non-profit employers, registration may take longer if the organization doesn't provide their non-profit paperwork, such as the 501(c) determination letter from the IRS, with their registration.
After you've submitted your request:
- If you registered online with all necessary information, you'll receive an account number immediately.
- If there's an issue with the information provided, it typically takes three days to receive an account number if you respond promptly to any requests for additional details.
- To check the status of your request or registration, log in to e-Services for Business. If you have questions, contact the agency directly.
- If you submitted paperwork in person (rather than online), registration may take up to 7 days.
Enter the tax account information in Niural
Once a valid California work address has been added in Niural for one or more employee(s), you can add your tax account information:
1. Go to the Company details section in your Niural account.
2. Click on Jobs and Pay.
3. Select Edit on California Tax Setup.
4. Enter your EDD account number and agency-appointed unemployment rate.
To update your EDD account information in Niural:
- Use the eight-digit EDD account number (e.g., 123-4567-8). Contact us at support@niural.com for account number updates.
- Exclude the "ETT" rate when entering your agency-assigned unemployment rate.
If you don’t have your agency-assigned rate, use the current year's "New employer rate" from here.
Update your rate in Niural only if it differs from the current one.
State Disability Insurance (SDI) and Paid Family Leave (PFL)
For resources related to California State Disability Insurance (SDI) and Paid Family Leave (PFL), here's what you need to know:
SDI and PFL Overview:
The California State Disability Insurance (SDI) program offers short-term Disability Insurance (DI) and Paid Family Leave (PFL) wage replacement benefits to eligible workers who require time off from work.
San Francisco-Specific Requirements:
Employers in the city of San Francisco may have additional obligations or requirements, so be sure to check with local authorities for details.
Finding Account Numbers and Rate Information (If Registered):
If you've already registered with the state, you must input your tax account details into Niural to facilitate employee payments. To enable Niural to file and pay taxes on your behalf, your registration should include the following agencies:
- CA Employment Development Department (EDD):
- Personal Income Tax (PIT)
- Unemployment Insurance (UI)
- State Disability Insurance (SDI)
- Employment Training Tax (ETT)
Finding Your EDD Tax Account Number and Unemployment Rate
You can find your EDD tax account number and unemployment rate in the following ways:
- On Your Registration Info Letter: You can find this information on your New Employer Account Registration Info letter, where it was initially provided.
- In Correspondence: Look in the upper right-hand corner of any additional agency correspondence, where it's listed as the Account ID.
- Online in e-Services for Business: You can access your unemployment (UI) rate and employment training tax (ETT) rates in your online e-Services for Business account. Under the "I Want To" section, click "Get My UI Rate." You may also find this information on your UI Rate and Reserve Account letter from the agency.
If you can't locate your account number or tax rates, contact the agency directly at (888) 745-3886.
Entering Your CA account Information on Niural
Once you've successfully added a valid California work address for one or more employees in Niural, you can proceed to input your tax account information using the following steps:
- Navigate to Company tab and click on Company Details
- Scroll down to the California Tax Setup section and click on Edit.
- Input your EDD account number, in the format 123-4567-8, and your agency-assigned unemployment rate into Niural. Be sure not to include the "ETT" rate in the rate field.
- To update your account number, contact Niural at support@niural.com to avoid tax complications.
- If you haven't received your agency-assigned rate yet, you can find the new employer rate here.
These steps ensure accurate tax account entry in Niural, meeting California State Disability Insurance (SDI), Paid Family Leave (PFL), and related tax compliance.
San Francisco payroll taxes and filings
Gross Receipts Tax
Most businesses operating in San Francisco are liable for a gross receipts tax. It's important to note that Niural does not handle the filing or payment of this tax because we lack the necessary business-specific details. For more information about this tax, including online filing and payment procedures, please visit the SF Treasurer's website.
Overpaid Executive Tax
The Overpaid Executive Tax, also called the Overpaid Executive Gross Receipts Tax, was approved by San Francisco voters on November 3, 2020, and took effect on January 1, 2022. Niural does not handle tax filing or payment for this specific tax due to the need for detailed business information.
Here's what you need to know:
- It adds a gross receipts tax of 0.1% to 0.6% on taxable gross receipts for businesses where the highest-paid managerial employee earns more than 100 times the median compensation of San Francisco-based employees.
- Businesses subject to the Administrative Office Tax will pay an additional 0.4% to 2.4% on their payroll expenses in San Francisco, replacing the extra gross receipts tax.
- File the Overpaid Executive Tax as part of the "Annual Business Tax Return." For more details, visit this website.
San Francisco Health Care Security Ordinance—The Fair Chance Ordinance
Employers subject to the Health Care Security Ordinance must file the Employer Annual Reporting Form by April 30th annually to avoid penalties of up to $500 per quarter. Please note that Niural does not handle this form; it must be completed independently by the employer.
The California Consumer Privacy Act of 2018
The California Consumer Privacy Act of 2018 (CCPA) was enacted by the California State Legislature and signed into law by Governor Jerry Brown in June 2018. It's a comprehensive consumer privacy law that bestows new rights upon consumers regarding their personal information and imposes data protection obligations on certain companies operating in California.
The CCPA became effective on January 1, 2020. Your company will be subject to its requirements if it meets any of the following criteria:
- Annual gross revenues exceed $25,000,000.
- The company annually engages in buying, selling, or sharing personal information of 50,000 or more California consumers, households, or devices.
- The company derives 50 percent or more of its annual revenue from selling the personal information of California consumers.
If your business falls under any of the above categories, you must take the following steps to comply with the CCPA:
- Address consumer requests to disclose the personal information collected about them.
- Delete specific types of personal information upon request.
- Allow consumers to opt out of the "sale" or sharing of their personal information.
- Provide notices and obtain consents from consumers for certain activities.
- Implement contractual limitations on data sharing with third parties, maintain an updated privacy policy, and more.
If you have questions about how the CCPA impacts your company, it's advisable to consult with a lawyer who can offer guidance tailored to your specific circumstances.
Forms Niural files for you in California
1. CA Report of New Hires (DE34)*
2. Payroll Tax Deposit Coupon (DE88)*
3. Quarterly Contribution Return and Report of Wages (DE 9)
4. Combined Payroll Tax Payment Coupon (DE 9C)
For more information or assistance, you can contact the California Employment Development Department at (888) 745-3886.