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For California contractors with employees, which state agencies must receive payroll tax contributions?

Correct Answer

D) EDD for unemployment insurance, SDI, and Employment Training Tax (ETT)

California contractors with employees must contribute to the Employment Development Department for Unemployment Insurance (UI), State Disability Insurance (SDI), and Employment Training Tax (ETT). These are mandatory state payroll taxes separate from workers' compensation insurance requirements.

Answer Options
A
EDD for unemployment insurance and State Disability Insurance (SDI)
B
Only the Employment Development Department (EDD)
C
Workers' Compensation Insurance Fund and EDD only
D
EDD for unemployment insurance, SDI, and Employment Training Tax (ETT)

Why This Is the Correct Answer

California contractors with employees must contribute to the Employment Development Department for Unemployment Insurance (UI), State Disability Insurance (SDI), and Employment Training Tax (ETT). These are mandatory state payroll taxes separate from workers' compensation insurance requirements.

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