How can I update our California Wage Plan?

The California Wage Plan is a designation given by the California Employment Development Department (EDD) based on the type of unemployment and disability insurance coverage offered to employees. Learn more

What is the update?

Although Zenefits previously supported the various wage plan designations on the backend, there were no front-end selectors for customers to change this on their own. The default selection will remain Subject to UIand SDI, or S. This update may not require action from your company, as long as your company's Wage Plan designation is the default Subject to UI and SDI (S). 

How to update your company’s wage plan designation: 

  1. From your Zenefits admin account, click into the Payroll app. 
  2. Click Settings, then Taxes
  3. Under the California Employment Development Department section, there will be a new line item for EDD Employment Type
  4. Click Update next to EDD Employment Type
  5. Select the designation that applies to your company from the dropdown

How do I know which designation applies to my company? 

You can find this information in your company’s EDD account. If you’re not sure, visit the EDD directly for more information.

Why am I being asked about this now, and not when I first set this up in Zenefits?

Zenefits did not previously have selection options for wage plans and the default setting was Subject to UI and SDI, or (S). As most employers are subject (S) to these tax types, this will continue to be the default setting. With this update, however, employers on an alternative wage plan can now update their account directly in Zenefits. 

What if I need to update my wage plan for a past filing period? 

Any updates to the system are only effective going forward. Employers will need to follow the EDD guidelines for correcting past reports.  

Will Zenefits be supporting California wage plans that include voluntary disability plans? 

 At this time, voluntary disability plan designations and the associated wage plan codes will not be supported in Zenefits Payroll.

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