If You Have Employees

You must withhold and pay federal income tax, social security tax, and unemployment tax for all employees. As an employer in California, you must withhold and pay state employee income tax, state unemployment insurance tax, employment training tax and disability insurance tax.

Sales Taxes

All businesses selling tangible personal property must pay a percentage of total gross receipts to the California Board of Equalization. This sales tax is collected from the consumer or purchaser at the time of sale and may be composed of state, county and city taxes. Sales tax rates vary within the state. In Sonoma County, the sales tax is 7.5 percent. Some businesses may not be required to collect sales tax on certain services or goods, such as professional fees or groceries.

Workman's Compensation Insurance

All businesses employing one or more persons must insure the employee for a work-related injury. The rates depend on the nature of each employee’s occupation. California offers State Compensation Insurance or this can be obtained through private insurance groups.

Some links in the Sonoma County Business Assistance Guide may take you to sites that the county does not maintain or control. The County of Sonoma does not warrant the accuracy of the information contained in such sites, and the content of such sites does not necessarily reflect the opinions, standards, or policies of the County of Sonoma. You should independently verify the accuracy of any information or representation on such sites before relying upon them.

Top of Page