What are Californias payroll taxes and who pays them?
• Unemployment Insurance (UI) is paid by employers. UI provides temporary payments to individuals who are unemployed through no fault of their own. • Employment Training Tax (ETT) is paid by employers. ETT provides training funds to empower workers, promote business and boost California’s economy. • State Disability Insurance (SDI) is deducted (withheld) from employees’ wages. SDI provides temporary payments to workers who are unable to perform their usual work because of a pregnancy or a nonoccupational illness or injury (work-related disabilities are covered by workers’ compensation). Beginning January 1, 2004, SDI also includes Paid Family Leave (PFL), which provides benefits to workers who need to care for a seriously ill family member or to bond with a new child. • California Personal Income Tax (PIT) is withheld from employees’ wages and credited toward the amount due for the employees’ annual California state income tax. • Elective Coverage is offered to specific types of indivi
