Los Angeles businesses have to account for city minimum wage rules, county minimum wage rules, California overtime, paid sick leave, and local wage enforcement. The exact rule can change based on where the employee works, not just where the company is headquartered.
The citywide minimum wage is $18.42 per hour from July 1, 2026. It applies to employees who work at least two hours per week within the city.
Keka stays updated with every federal, state, and local payroll rule in Los Angeles, so you never worry about tax changes or compliance gaps.
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ISO 27001
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FULL COMPLIANCE COVERAGE
| Los Angeles requirement | What Keka does | How it helps |
|---|---|---|
| Federal income tax withholding (W-4) | Withholds based on employee W-4 elections each cycle | Auto-withheld |
| California income tax withholding (DE-4) | Withholds using California progressive rate per DE-4 | Auto-withheld |
| California Payroll Tax Deposit | Deposits state taxes on required schedule | Auto-filed |
| Quarterly Federal Tax Return (Form 941) | Files quarterly federal payroll tax return | Auto-filed |
| California SDI / PFL contribution | Deducts employee SDI contribution each cycle | Auto-deducted |
| California SUI (employer) | Calculates employer SUI liability per cycle | Auto-calculated |
| Los Angeles City minimum wage | Validates employee pay against LA City floor at setup | Flags violations |
INTEGRATIONS
Sync payroll journal entries to your QuickBooks chart of accounts each cycle.
Auto-map deductions, taxes, and benefits to your Xero accounts.
Push payroll runs, headcount, and accruals into your NetSuite general ledger.
Send each pay cycle's data into Sage Intacct without manual exports.
401(k) contributions deducted and remitted to Guideline every pay run.
Payroll approvals, alerts, and error flags delivered to your Slack channels.
Single sign-on and SCIM user provisioning across the Keka platform.
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Compliance Library
Stay current on California employment laws.
Yes. Keka maps each employee to their work location, applying the LA City minimum wage where applicable and the California state rate elsewhere, all within a single payroll run.
Yes. California SDI contributions are deducted automatically each cycle. Keka tracks the contribution in the employee’s pay record, which supports Paid Family Leave eligibility documentation.
Keka withholds California income tax using the employee’s DE-4 election and California’s progressive rate structure. The California Payroll Tax Deposit (DE 88) is filed on the required schedule automatically.
Keka validates the employee’s pay rate against the applicable minimum wage — LA City or California state — at setup and flags any shortfall before the first payroll run.
Keka applies California’s daily overtime rules — 1.5x after 8 hours in a day and 2x after 12 hours — using approved timesheet data, so daily overtime is calculated at the source rather than estimated.
Keka maintains payroll records, tax filings, and pay history within the platform. California requires payroll records to be retained for a minimum of three years, and Keka’s records are accessible for review or export at any time.
Federal, state, and local payroll requirements — handled automatically from start to finish.