How much does the employer pay for unemployment in California EDD?

Great question and honestly more people should understand this. In California, employers pay into the UI system through the State Unemployment Insurance (SUI) tax, which is separate from what employees pay. New employers generally start at a rate of 3.4% on the first $7,000 of each employee's wages per year. That's called the FUTA wage base for federal purposes, but California uses its own base for SUI. The rate can go up significantly depending on the employer's experience rating — basically how many former employees have claimed UI benefits against them. Employers with lots of claims can end up paying much higher rates, sometimes up to 6.2% or even higher for certain categories. So yes, your ex-employer's history absolutely plays into how much they pay, but it doesn't directly affect whether YOUR claim gets approved or the amount you receive.

To add some specifics — the California SUI taxable wage base is $7,000 per employee per year as of the current cycle. So even if an employee earns $100,000, the employer only pays SUI on the first $7,000. At the standard new employer rate of 3.4%, that's $238 per employee annually at minimum. But experience-rated employers can have rates from as low as 1.5% to as high as 6.2% or above depending on their claims history. There's also the Employment Training Tax (ETT) which is 0.1% on that same wage base, and the employer also matches certain other contributions. Employees separately pay SDI (State Disability Insurance) which is a different program.

Honestly all this tax stuff is interesting but if you're sitting in adjudication right now that's what you should be focused on. While you're researching employer tax rates your claim could be getting held up for something completely fixable. I was in adjudication for almost five weeks before I figured out I needed to actually CALL California EDD and not just wait. The online portal told me nothing useful. Getting through on the phone is the real challenge — I tried for days straight and couldn't reach anyone. A friend told me about Claimyr (claimyr.com) which basically navigates the California EDD phone system for you and gets you connected to an actual agent. There's a video showing how it works at https://youtu.be/JmuwXR7HA10. Once I actually talked to someone they explained exactly what was holding my claim and it was resolved within a week. Don't let the tax research distract you from fixing your actual claim situation.

To answer the original question more directly — the employer contribution to unemployment in California comes from three main sources on their end: SUI (State Unemployment Insurance tax), FUTA (Federal Unemployment Tax Act), and ETT (Employment Training Tax). FUTA is 6% federally on the first $7,000 but employers get a 5.4% credit if the state's UI fund is solvent, bringing the effective federal rate down to 0.6%. California's SUI varies by employer experience rating. So a typical employer might pay around $434 per employee per year in combined UI-related taxes at baseline rates. But employers with poor experience ratings can pay multiples of that.

OK but can we talk about whether the employer contesting a claim actually works? My previous employer tried to fight my claim saying I quit voluntarily when I absolutely did NOT quit, I was pushed out in what I consider a constructive discharge situation. California EDD sided with me after adjudication but it took forever. The employer disputing it definitely caused the adjudication delay.

Something worth knowing — the employer's tax rate (their experience rating) is recalculated annually by California EDD. The formula considers the employer's reserve account balance, which goes up when they pay taxes and down when their former employees collect benefits. If an employer's account goes negative, their rate increases. This is why larger employers who do mass layoffs periodically end up paying much higher SUI rates than stable employers. The system is designed to make employers internalize some of the cost of their workforce decisions.

I've been following this thread because I have the same adjudication issue as OP. Just wanted to share that I tried Claimyr after seeing it mentioned here and it actually did connect me to a California EDD agent. Took about 20 minutes instead of the literal days I'd been trying on my own. The agent confirmed my claim had an unresolved employer response that was holding things up. Now at least I know what to do. So if you're in adjudication and can't get through to EDD, claimyr.com is worth trying — there's a demo video at https://youtu.be/JmuwXR7HA10 that explains the process.

One thing I want to clarify that sometimes confuses people — the employer paying UI taxes doesn't mean the employer is directly paying YOUR benefits. The money goes into a pooled state fund. California EDD then pays benefits from that fund. So even if your specific employer somehow had a zero balance in their account, you'd still receive benefits (assuming you're eligible). The experience rating system just affects what the employer pays going forward, not whether individual claimants receive their benefits.

just here to say i had NO idea employers paid that much into unemployment. always assumed employees paid for it ourselves like health insurance lol. kind of changes how i think about it

Coming back to add — for anyone stuck in adjudication and frustrated with the phone situation, I also want to mention that calling right when the phone lines open (8am) used to be the best strategy but honestly with current call volumes it's still really hard to get through. Claimyr solved this for me when the early bird strategy stopped working. The key thing once you DO reach an agent is to ask them specifically what is flagging your claim in their system — they can see notes that you can't see in UI Online.

Kind of tangential but this thread made me wonder about independent contractors. If you're classified as 1099 your employer doesn't pay UI taxes on your wages. That's part of why gig workers were excluded from regular UI for so long. If your employer misclassified you as an independent contractor when you should have been an employee, you can file a misclassification complaint with California EDD and potentially still qualify for benefits. Just something worth knowing if that's anyone's situation.

does anyone know if there's a way to look up what rate your employer is paying? like is that public info

For the original poster wondering about whether their employer contesting the claim affects their benefits amount — it doesn't. Benefit amounts are calculated based on your earnings during the base period, which is the first four of the last five completed calendar quarters before you filed. Your employer's SUI rate or whether they contest eligibility has zero effect on the weekly benefit amount calculation. The contest only affects WHETHER you get benefits, not how much.

adding a totally different angle — i work in HR and see the employer side of this. when we get a UI claim notice from california edd we have like 10 days to respond. if we dont respond in time we automatically lose our ability to contest that claim. so if your employer is disputing your claim, they had to act pretty quickly after you filed. the adjudication you're experiencing is EDD weighing both your account of the separation and whatever your employer submitted.

I'm a little late to this thread but wanted to share — I spent three weeks trying to figure out why my adjudication wasn't moving. The online portal just kept saying pending. Finally got through to a California EDD agent (used Claimyr after reading about it in another thread) and found out my employer had submitted incorrect separation information. The agent walked me through submitting a rebuttal statement. Claim was resolved within two weeks after that. Point is — adjudication almost always requires some human intervention to resolve faster. Don't just wait and hope the system figures itself out.

ok so to summarize what i've learned from this thread: employers pay SUI which varies by how much they've had to pay out in past claims, it funds a pool that EDD pays benefits from, employers can contest claims to protect their rates, and getting through to an actual EDD agent is basically necessary if you're stuck in adjudication. did i get that right

One more practical note for OP and anyone in adjudication — if your adjudication does result in a denial, you have 30 days from the mailing date of the notice to file an appeal. Don't miss that window. Appeals go to the California Unemployment Insurance Appeals Board (CUIAB) and you get a hearing with an administrative law judge. Win rate for claimants who actually show up and present their case is significantly better than people expect. So even a denial isn't necessarily the end of the road.