In late 2020, the state of California announced the CA Pay Data Report, a report that certain employers are required to submit annually. We know navigating this report may be challenging, so we’ve put together some FAQs for you below. CA also compiled a robust FAQ to assist employers with understanding the requirements and process.
What is the CA Pay Data Report?
In September 2020, California Legislature passed SB 973 requiring private employers with 100 or more employees (and at least 1 in California) to submit certain pay data and additional information to the Department of Fair Employment and Housing (DFEH). The report is now submitted to the Civil Rights Department or CRD, and you can find all reporting guidance and deadlines on their website.
What is the purpose of the CA Pay Data Report?
Pay and hours worked are to be reported by establishment, gender, sex, job category, race and ethnicity. Additional information regarding the report can be found here.
Is this required for my company?
While Justworks cannot provide legal or tax advice, private employers with 100 or more employees and who have at least one employee in CA (remote or otherwise) will be required to submit the required pay data information. This includes part-time employees and temporary employees paid W-2 wages. As with EEO-1 reporting, related entities are counted together toward the 100 employee requirement.
Will you submit this on behalf of my company?
Justworks does not submit this on customers’ behalf as there is information needed outside of the data we have available in our system such as individualized hours estimates for exempt employees. Additionally, CRD requires each individual employer to certify the information provided, which certification can not be provided by Justworks. Justworks will assist you by providing you with information and guidance ahead of the filing deadline. Information provided will be for the snapshot period December 24- 30, 2023, unless you choose a different snapshot period as provided below.
Can I choose a different snapshot period?
CRD guidelines permit choosing a snapshot period between October 1 and December 31, 2023. Justworks will be using the snapshot period December 24-30, 2023, unless you selected a different snapshot period during EEO-1 data collection. In order for us to provide you with the resources needed to file both these reports, it is crucial you use the same snapshot period for both the EEO-1 Report and the CA Pay Data Report.
After submitting your company’s EEO-1 survey to Justworks, you are no longer able to select a different snapshot period for the resources we will provide to you, however you may use the census and payroll reports available in your Justworks account to find certain information available in our system if you would like to select a different snapshot period at that point.
How can I submit this for my company?
You can find a step by step guide on the CA Pay Data Reporting homepage that will walk you through the steps. The submissions portal, guide and FAQs can all be found on the linked page. Justworks will assist you by providing you with information and guidance ahead of the filing deadline.
When do I need to submit the report?
The CRD portal opened on February 1, 2024 and the report should be submitted by the May 8, 2024 deadline.
What information do I need to submit?
The report template here provides all of the information you’ll need to submit as well as comprehensive instructions. The report template will ask for you to provide employee information per establishment as with EEO-1 reporting requirements.
I have remote employees in CA- What is their establishment location?
Remote employees’ establishments should be listed as whichever office they are assigned to. If an employee is remote working in CA and reports to an office in NY, you would use the NY location as the establishment. Additional information can be found here.
Do I have to include data on employees outside of California?
Yes- If an employee works outside of CA, but reports to an establishment in CA, they should be included in the report.
My company has multiple related entities. Do I need to submit a report for each entity?
If the parent company and subsidiaries are legally one entity, only one report needs to be filed for the applicable establishments and employees. If this is not the case, a report should be submitted for each subsidiary.
Can you provide me with my establishment ID?
No- Currently, the EEO-1 filing portal is closed, meaning we do not have access to this information, even if we have filed for you in the past. According to the template, this information is not a required field for the CA Pay Data Report.
The report asks for an EIN, should this be my company’s EIN or Justworks’ EIN?
You should use your company’s EIN.
What information will Justworks provide to me?
As long as such information is present in our system, Justworks will provide the following information for each employee with a California work or home address during the snapshot period and all remote employees during the snapshot period if your company headquarters are in California in our system.
You will be required to verify the accuracy of such information and provide any required information that Justworks was not able to provide from our system.
- Snapshot period start date
- Snapshot period end date
- Company name
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Establishment address*
- This will be the office address during the snapshot period OR the current company headquarters address if the employee was a remote worker during the snapshot period.
- This will be the office address during the snapshot period OR the current company headquarters address if the employee was a remote worker during the snapshot period.
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NAICS code*
- This will be what is currently present in Justworks.
- Custom Employee ID (only if present)
- Employee name**
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Job category
- This will be based on what is entered in Justworks for the snapshot period. If this is blank, “999” will be displayed in our report.
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Race/ethnicity/sex
- This will be based on what is entered in Justworks for the snapshot period. If this is blank, “999” will be displayed in our report.
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Pay band
- This will be based on what is entered in Justworks for the snapshot period. If this is blank, “999” will be displayed in our report.
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Hours worked during 2023 while on Justworks
- Please note, only timecard hours for nonexempt employees will be included as CA requires individualized hours estimates for exempt employees which is not present in Justworks.
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2023 W-2 earnings while on Justworks
- This will show Box 5 earnings. If nothing is present in Box 5, then the amount will be pulled from Box 1. If there’s also nothing in Box 1 then there will be no number displayed here.
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How it was determined that the employee should be included. The report will show you which of the following cases apply:
- Employee had a CA home address during the snapshot period
- Employee had a CA work address during the snapshot period
- Employee was remote worker during the snapshot period and the company HQ is in CA
*Leading 0s may be dropped from the NAICS code or zip code when downloading the report, so please review the information to confirm that all digits are present.
**Please note that any employees who reported to multiple establishments during the snapshot period may appear on the report from Justworks twice. For example, if the employee worked in an office and then became a remote worker during the snapshot period, they will have two establishments and will be listed twice on our report. When it comes to determining which establishment you should use for the employee on the CA Pay Data Report, you can refer to the guidance from the CRD. According to the FAQs, “If an employee reports to more than one establishment during the Snapshot Period, employers should assign the employee to the establishment that the employee reports to for the majority of their work.”
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.