Update Tax Rate for California Employee Training Tax (CA ETT)

Tax rates for California Employee Training Tax (CA ETT) and California State Disability Insurance (CA SDI) are maintained by the tax engine and are not editable in the system (field is greyed out).

 

Generally, there is no action needed on payroll user's end if the tax is being maintained at the system level.  Exemption is for CA ETT rate changes. 

 

1. Notification from California state agency that the California Employee Training Tax (ETT) rate is 0% for the year.

a. Using an Administrator role, navigate to Setup > Payroll > Set Up Payroll > Taxes tab

b. Mark the Exempt check box next to CA ETT

c. Change the Effective Date

d. Click Save

e. Update the payroll information (Navigate to Setup > Payroll > Update Payroll Information > check the Agree check box > Click Commit Updates)

f. Contact NetSuite Customer Support to notify Ceridian to update the tax rate on their end

 

 

2. Notification from California state agency that your company is eligible for California Employee Training Tax (ETT) from being exempt last year.

a. Using an Administrator role, navigate to Setup > Payroll > Set Up Payroll > Taxes tab

b. Unmark the Exempt check box next to CA ETT

c. Change the Effective Date

d. Click Save

e. Update the payroll information (Navigate to Setup > Payroll > Update Payroll Information > check the Agree check box > Click Commit Updates).

f. Contact NetSuite Customer Support to notify Ceridian to update the tax rate on their end

 

To update California Unemployment (SUI) rate in NetSuite, refer to the topic FAQ: Payroll & HR : How can I update the unemployment rates in NetSuite?