A contractor hires her first employee. When must she register as an employer with the EDD for payroll tax purposes?
Explanation
A person who pays more than $100 in wages in a calendar quarter is an employer under Unemp. Ins. Code §675, and §1086 gives that employer 15 days to register with EDD. (a) treats registration as a year-end filing, confusing it with the annual reconciliation. (b) invents a large threshold; $100 in a quarter is a single day's pay for one laborer, so almost any hire crosses it. (d) is early rather than wrong in spirit, but it misstates the trigger - the duty is set off by paying wages, not by the start of work, which matters for an owner who works alongside a helper for a week before any cheque is written. Paying in cash changes nothing.
Law Reference: Unemp. Ins. Code §§675, 1086; EDD Form DE 1This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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