There are many terms that employers may be unfamiliar with when beginning their CA Pay Data Reports. Here are some important terms to know:
- Client Employer – A private individual or entity that has workers hired through Labor Contractors.
- CRD – The California Civil Rights Department
- Employee – An individual on an employee’s payroll, and can include part-time employees. “Employee” may refer to a Payroll Employee, Labor Contractor Employee, or both.
- Employer – A private individual or entity that is obligated to file a Pay Data Report on Payroll and/or Labor Contractor Employees.
- Establishment – An economic unit producing goods or services.
- Labor Contractor – An individual or entity that supplies a Client Employer with workers to perform labor within their usual course of business.
- Labor Contractor Employee – An individual on a Labor Contractor’s payroll, including part-time workers, for whom the Labor Contractor is required to withhold federal social security taxes and who performs labor for a Client Employer within their usual course of business.
- Labor Contractor Employee Report – A Pay Data Report in which a Client Employer annually reports data on their Labor Contractor Employees to the CRD.
- Pay Data – The data that must be reported to the CRD.
- Pay Data Report – A Payroll Employee Report and/or Labor Contractor Employee Report.
- Payroll Employee – An individual on an employer’s payroll, including part-time individuals, for whom the employer is required to withhold federal social security taxes from that individual’s wages.
- Payroll Employee Report – The type of pay data report in which an employer annually reports data on their Payroll Employees to the CRD.
- Snapshot Period – A single pay period between October 1st and December 31st of the reporting year. It is only used to identify the Payroll Employees or Labor Contractor Employees that should be included in the report.
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.