With a state as large and diverse as California, it appeals to businesses. However, the state's unique employment law requirements can pose challenges to employers new to the state. The following are some action items employers need to complete before their first employee starts working in California.
California Employer Identification Number (EIN)
All employers in California must obtain an EIN by filing a DE-1 Registration Form with the Employment Development Department (EDD). The EIN serves as the state equivalent of the federal tax identification number. The EIN is essential for reporting employment taxes and complying with other state requirements.
Workers' Compensation Insurance Coverage
California requires that all employers either have workers' compensation insurance or be authorized to self-insure. Failure to comply with this requirement may subject an employer to penalties.
Required Registration, Certification, or Licensing for Certain Industries
In California, certain industries require employers to be registered, certified, or licensed through various state agencies prior to operating a business. The California Division of Labor Standards Enforcement provides licensing or registration for the following industries:
- Farm Labor Contractors
- Garment Manufacturers
- Talent Agents
- Employers of Industrial Homeworkers
- Sheltered Workshops
- Studio Teachers
- Car Washes
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.