California Wage Plan Codes
Background
For California employees, you must select the Wage Plan Code that applies to each employee. The Wage Plan Code indicates the type of coverage an employee has and is related to your State Employer Account Number. The most common code used is “Covered under a state plan for both unemployment and disability insurance,” unless your company has been assigned another code. For more information, see the following information sheets from the California EDD:
- California EDD Information Sheet – Reporting Wage Plan Codes
- California EDD Information Sheet – Taxability of Employee Benefits
When you add employees you will select their Wage Plan Code for state reporting.
Select the correct choice from the dropdown list based on the EDD Information Sheet – Reporting Wage Plan codes.
- A – Covered under state plan for unemployment insurance (applies only to public entity employees)
- J – Covered under state plan for disability insurance (exempt from unemployment insurance)
- L – Covered under voluntary plan for disability insurance (exempt from unemployment insurance)
- P – Covered for personal income tax withholding purposes only
- R – Employee claims exemption (religious, approved sole shareholder, or received 3rd-party sick pay), but is covered under state plan for UI
- S – Covered under a state plan for both unemployment and disability insurance (RECOMMENDED)
- U – Covered under department approved voluntary plan for disability insurance and state plan for unemployment insurance
Click “Save Employee.”
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