Businesses in California have access to a highly-skilled workforce, thanks to the state’s world-class universities, community colleges, and workforce training providers. The state offers incentives to encourage hiring, and businesses must also be mindful of responsibilities for administering employees, including business registration filings, wage and hour laws, workers compensation insurance requirements and health care responsibilities. Explore the tabs below to learn more.

Hiring Incentives

California Competes
The California Competes Tax Credit is an income tax credit available to companies that want to come to California or stay and grow in California. Learn More

New Employment Credit 
The New Employment Credit is an income tax credit available to companies that hire full-time employees within designated geographic areas.
Learn More

Employment Training Panel 
The Employment Training Panel (ETP) provides funding to employers to assist in upgrading the skills of their workers through training that leads to well-paying, long-term jobs. Learn More

Training Employees

California’s superior educational system and workforce training initiatives produce an unrivaled, highly skilled labor force. California businesses have access to a full menu of workforce services, including training reimbursements, workforce recruitment and training, education, and labor market information. Learn More

Employer Registration

At the State Level: Employment Development Department (EDD) Registration

An employer is required to file a Registration Form within 15 days after paying more than $100 in wages to one or more employees. Please consult the ​​​​California EDD website.


At the Federal Level: Internal Revenue Service (IRS) - Employment Identification Number Registration

Employers with employees, business partnerships, and corporations, must obtain a Federal Employer Identification Number (EIN) from the IRS. Businesses can obtain appropriate federal income tax forms using the IRS website. You can contact them at (909) 388-8108.

Workers' Compensation

Businesses with employees must maintain Workers' Compensation Insurance coverage. Consult the California Department of Industrial Relations (DIR) website and view a list of DIR Frequently Asked Questions about Workers' Compensation for employers. 

Employers may finance their liability for workers’ compensation benefits by one of three methods:

  1. Self insurance: Most large, stable employers and most government agencies are self-insured for workers’ compensation. To become self-insured, employers must obtain a certificate from the Department of Industrial Relations. Learn More
  2. Private insurance: Employers may purchase insurance from any of the private insurance companies which are licensed by the Department of Insurance to transact workers’ compensation insurance in California. Learn More
  3. State insurance: Employers may also purchase insurance from the State Compensation Insurance Fund, a state-operated entity that exists solely to transact workers’ compensation insurance on a non-profit basis. Learn More

If you are an out-of-state employer you may need workers' compensation coverage if you have any employees regularly working in California, or if you enter into a contract of employment in California.

Employee Wage and Hour Laws


Affordable Health Care Act

The Affordable Health Care Act contains both responsibilities and benefits for employers in California. Information about the Affordable Care Act from the Internal Revenue Service (IRS) is summarized below, and we encourage you to visit the IRS Affordable Care Act website to learn more.

Businesses with fewer than 25 employees may qualify for a Small Business Health Care Tax Credit to help cover the cost of providing coverage.

Businesses with 50 or fewer employees may be eligible to use the Small Business Health Options Program (SHOP). In California, the Covered California marketplace administers the SHOP program. Covered California also provides a list of frequently asked questions related to businesses and the Affordable Care Act. Go

Businesses with 50 or more employees need to document the health insurance they provided to their employees. Go

In addition, they are subject to the Employer Shared Responsibility provisions.

Businesses of all sizes that provide self-insured health coverage to their employees must file an annual return reporting certain information for each employee they cover.

The US Small Business Administration (SBA) also provides informational resources to help small businesses better understand the Affordable Care Act. Go

Get in touch

About Us

The Governor’s Office of Business and Economic Development (GO-Biz) was created by Governor Edmund G. Brown Jr. to serve as California’s single point of contact for economic development and job creation efforts.  GO-Biz partnered with the State's Information Technology Leadership Academy 22 to create this website.