California Employer'S Guide: (Internet) (Internet)
California Employer'S Guide: (Internet) (Internet)
EMPLOYER’S GUIDE
44 (1-20)
DE 44 Rev. 46 (1-18) (INTERNET) Cover + 118 pages CU
Important Information
Electronic Reporting and Payment Requirement: All employers must electronically submit employment
tax returns, wage reports, and payroll tax deposits to the Employment Development Department
(EDD). For more information, visit the e-file and e-pay mandate and related noncompliance penalties
(edd.ca.gov/EfileMandate) or refer to page 49.
e-Services for Business: Employers can file, pay, and manage their employer payroll tax account online.
For more information, visit e-Services for Business (edd.ca.gov/e-Services_for_Business) or refer to
page 50.
State Information Data Exchange System (SIDES): Employers and third-party administrators can elect to
electronically receive and respond to the EDD Notice of Unemployment Insurance Claim Filed (DE 1101CZ)
using SIDES. For more information, visit SIDES (edd.ca.gov/SIDES).
New Employee Registry (NER): All employers are required by law to report all newly hired or rehired
employees to the NER within 20 days of their start-of-work date. For more information, visit NER FAQs
(edd.ca.gov/payroll_taxes/faq_-_california_new_employee_registry) or refer to page 53.
Tax Seminars: The EDD offers no-cost seminars to help employers comply with state payroll tax laws.
For more information, visit payroll tax seminars (edd.ca.gov/payroll_tax_seminars) or refer to page 1.
Fraud Prevention, Detection, Reporting, and UI Rate Manipulation: For information on how to prevent
and detect UI fraud, visit UI Fraud (edd.ca.gov/unemployment/fraud_and_penalties_what_you_need_to_
know) or refer to page 84.
Improper Payment of UI Benefits is a serious problem that has a financial impact on employers and
can result in higher UI taxes for all employers. You can help by responding timely to requests for wage
information. For more information, visit UI claim notices (edd.ca.gov/unemployment/responding_to_ui_
claim_notices).
California Employer Newsletter: For the latest news and helpful information, refer to the quarterly
California Employer Newsletter (edd.ca.gov/payroll_taxes/california_employer_newsletter).
2020 Payroll Tax Rates, Taxable Wage Limits, and Maximum Benefit Amounts
Unemployment Insurance (UI)
● The 2020 taxable wage limit is $7,000 per employee.
● The UI maximum weekly benefit amount is $450.
● The UI tax rate for new employers is 3.4 percent (.034) for a period of two to three years.
● The employer rates are available online at e-Services for Business
(edd.ca.gov/e-Services_for_Business).
Employment Training Tax (ETT)
● The 2020 ETT rate is 0.1 percent (.001) on the first $7,000 of each employee’s wages.
State Disability Insurance (SDI)
● The 2020 SDI withholding rate is 1.0 percent (.01). The rate includes Disability Insurance (DI) and
Paid Family Leave (PFL).
● The SDI taxable wage limit is $122,909 per employee, per year.
● The 2020 DI/PFL maximum weekly benefit amount is $1,300.
California Personal Income Tax (PIT) Withholding
California PIT withholding is based on the amount of wages paid, the number of withholding allowances
claimed by the employee, and the payroll period. Please refer to page 13 for additional information on PIT
withholding or refer to the PIT withholding schedules available on page 17.
For additional rate or PIT withholding information refer to page 10 or visit Rates and Withholding
(edd.ca.gov/payroll_taxes/rates_and_withholding).
Patrick W. Henning
Director
Gavin Newsom
Governor
The Employment Development Department (EDD) recognizes that employers are vital to
California’s economy and, like you, the EDD wants your business to thrive well into the future.
A part of that success includes making it easier to file and pay with e-Services for Business
(edd.ca.gov/e-Services_for_Business). Using e-Services for Business to comply with the
e-file and e-pay mandate is a fast, easy, and secure way to manage your employer payroll tax
accounts online. These are just a few of the features available now on e-Services for Business:
In addition to payroll taxes, our website contains valuable information for employers and their
employees on topics such as Unemployment Insurance, Disability Insurance, and Paid Family
Leave, jobs and training, labor market information, seminars, and EDD forms and publications.
Stay informed about our programs and services by subscribing to the EDD’s email
subscription service (edd.ca.gov/about_edd/get_email_notices).
All of these services are provided for you with your continued success in mind. For additional
information about any of these programs, services, seminars, or forms and publications, visit the
EDD website (edd.ca.gov) or call the Taxpayer Assistance Center at 1-888-745-3886.
Your contribution is important to us because together, we can make a visible difference for the
state of California.
Sincerely,
PATRICK W. HENNING
Director
(edd.ca.gov/e-Services_for_Business).
The EDD offers no-fee seminars, either classroom-style or online. They are customized to help educate both existing
and established employers as well as new employers to better understand and comply with the state payroll tax laws.
The classroom seminars are offered in a variety of locations throughout California. The EDD also offers online
seminars that allow you the flexibility to learn at your own pace and wherever you choose to access the Internet.
● Information to help you enroll and get started using e-Services for Business to
manage your employer payroll tax account online.
● Differences between employees and independent contractors.
• Send comments and questions to the EDD at Bakersfield.............1800 30th Street, Suite 240, 93301
Ask EDD (edd.ca.gov/about_edd/contact_edd.htm).
Eureka...................409 K Street, Suite 202, 95501
Visit the California Tax Service Center website at Modesto.................3340 Tully Road, Suite E-10, 95350
(taxes.ca.gov) for federal and California tax information
for businesses and individuals. San Francisco.......745 Franklin Street, Suite 400, 94102
Santa Rosa............50 D Street, Room 100, 95404
Vallejo....................1440 Marin Street, Suite 114, 94590
Ventura..................4820 McGrath Street, Suite 200, 93003
Phone
Toll-free from the U.S. or Canada:
1-888-745-3886
Hearing impaired: 1-800-547-9565
Outside the U.S. or Canada: Forms and Publications
1-916-464-3502 Download and order forms, instructions, and publications
at EDD Forms (edd.ca.gov/forms/).
Staff are available from 8 a.m. to 5 p.m., Pacific Time,
Monday through Friday to answer your questions.
YES
Step 3
Give to Employee(s)
Post in Workplace
Provide to the EDD within 20 days Form W-4/ Employee’s Withholding
DE 4 Allowance Certificate DE 1857A Notice to Employees
DE 34 Report of New Employee(s) DE 2320 For Your Benefit: California’s
DE 542 Report of Independent Programs for the Unemployed (If you are a public entity or not
Contractor(s) DE 2511 Paid Family Leave subject to UI, refer to page 75
for your posting requirements.)
DE 2515 Disability Insurance Provisions
AND
Most forms are available on the EDD website (edd.ca.gov) or by calling the Taxpayer Assistance Center at 1-888-745-3886.
Next-Day 15 of the
th
$350 to $500 Any payday Monthly
following month
More than $500 Any payday Next-Day Next-Day
Less than $350 Any payday Quarterly3 Quarterly
15th of the
$350 to $500 Any payday Monthly
following month
Semi-weekly
Following
More than $500 Wed., Thurs., or Fri. Semi-weekly
Wednesday7
More than $500 Sat., Sun., Mon., or Tues. Following Friday7 Semi-weekly
Less than $350 Any payday Quarterly 3
Quarterly
Monthly 15 of the
th
$350 or more Any payday Monthly
following month
April 30, 2020
July 31, 2020
Quarterly4, 5 Less than $350 Any payday Quarterly
November 2, 2020
or February 1, 2021
Annually6
15th of the
$350 or more Any payday Monthly
following month
1
If the due date falls on a Saturday, Sunday, or legal holiday, the due date is extended to the next business day. For example, if a deposit is due
on Friday, but Friday is a holiday, the deposit due date is extended to the following Monday.
2
Electronic transactions for Next-Day deposits must be settled in the state’s bank account on or before the third business day following the
payroll date.
3
If the due date falls on a Saturday, Sunday, or legal holiday, the due date is extended to the next business day. For example, if a deposit is due
on Friday, but Friday is a holiday, the deposit due date is extended to the following Monday.
4
If you have accumulated less than $350 of PIT and you choose to make an additional deposit before the quarterly due date, designate the
“DEPOSIT SCHEDULE” as QUARTERLY on your DE 88.
5
If you are not required to follow one of the above federal deposit schedules/requirements, you are still required to make California payroll tax
deposits of accumulated SDI deductions and PIT withholdings quarterly or more often, based on the guidelines in this table. Information about
federal deposit schedules is located in the Internal Revenue Service’s Employer Tax Guide (Publication 15).
6
A deposit of employer UI and ETT taxes and any accumulated SDI and PIT withholdings not previously paid MUST BE DEPOSITED EACH
QUARTER by the due dates shown.
7
If your federal deposit requirement is annually, you are required to make California payroll tax deposits quarterly or monthly based on the
guidelines in this table.
edd.ca.gov Taxpayer Assistance Center 1-888-745-3886
DE 44 Rev. 46 (1-20) (INTERNET) Page 6 of 118
WHO IS AN EMPLOYER?
An employer is a person or legal entity that hires one or more persons to work for a wage, salary, or other
compensation. Employers include sole proprietors, partnerships, corporations, nonprofit organizations, charitable
organizations, foundations, limited liability companies, limited liability partnerships, public entities (including state and
federal agencies), schools, associations and trusts, estates, joint ventures, and Indian Tribes.
When Do I Become an Employer?
You become an employer when you employ one or more employees and pay wages in excess of $100 during any
calendar quarter. Wages are compensation for services performed, including, but not limited to, cash payments,
commissions, bonuses, and the reasonable cash value of nonmonetary payments for services, such as meals and
lodging. For additional information, refer to “What Are Wages?” on page 11.
Private households, local college clubs, and local chapters of fraternities and sororities that employ workers to perform
household services are “household employers.” Additional information about household employment is available online
at (edd.ca.gov/payroll_taxes/household_employer.htm). You can also refer to the Household Employer’s Guide
(DE 8829) (edd.ca.gov/pdf_pub_ctr/de8829.pdf), or obtain a copy by contacting the Taxpayer Assistance Center at
1-888-745-3886.
NOTE: If you acquired an existing business, refer to “What Is a Successor Employer?” on page 73 for further details.
WHEN TO REGISTER
All employers conducting business in California are subject to the employment tax laws of the California Unemployment
Insurance Code (CUIC). Once a business hires an employee and pays in excess of $100 during any calendar quarter,
the business is considered to be an employer and can register at e-Services for Business (edd.ca.gov/e-Services_
for_Business) or submit a registration form to the EDD within 15 days after paying wages.
Employers are responsible for reporting wages paid to their employees and paying UI tax and Employment Training
Tax (ETT) on those wages, as well as withholding and remitting SDI and PIT due on those wages.
ACTION REQUIRED: Register with the EDD for an employer payroll tax account number if you employ one or
more employees and pay wages in excess of $100 during any calendar quarter.
Additional Options for Registering for an Employer Payroll Tax Account Number
1. Select the appropriate registration form for your industry available at Forms and Publications
(edd.ca.gov/payroll_taxes/forms_and_publications.htm). These are the most common registration forms
available:
• Commercial Employer Account Registration and Update Form (DE 1)
• Agriculture Employer Account Registration and Update Form (DE 1AG)
• Governmental Organizations, Public Schools, and Indian Tribes Registration and Update Form (DE 1GS)
• Employers of Household Workers Registration and Update Form (DE 1HW)
• Nonprofit Employers Registration and Update Form (DE 1NP)
• Employers Depositing Only Personal Income Tax Withholding Registration and Update Form (DE 1P)
2. Submit the completed registration form by mail or fax to the EDD:
Employment Development Department
Account Services Group, MIC 28
PO Box 826880
Sacramento, CA 94280-0001
Fax: 1-916-654-9211
REMEMBER:
• Employment occurs when an employer engages the services of an employee for pay.
• You become an employer when you employ one or more employees and pay wages over $100 during any
calendar quarter.
• You must register with the EDD within 15 days of paying wages in excess of $100.
• Employers are responsible for reporting wages paid to employees and paying UI and ETT on the wages, as
well as withholding and remitting SDI and PIT.
edd.ca.gov Taxpayer Assistance Center 1-888-745-3886
DE 44 Rev. 46 (1-20) (INTERNET) Page 7 of 118
WHO IS AN EMPLOYEE?
An “employee” includes all of the following:
• Any officer of a corporation.
• Any worker who is an employee under the ABC test.
• Any worker whose services are specifically covered by law.
An employee may perform services on a temporary or less than full-time basis. The law does not exclude services from employment
that are commonly referred to as day labor, part-time help, casual labor, temporary help, probationary, or outside labor.
REMEMBER:
• An employee includes any officer of a corporation, a worker who is an employee under the ABC test, and a worker
whose services are specifically covered by law. Refer to Information Sheet: Types of Employment (DE 231TE)
(edd.ca.gov/pdf_pub_ctr/de231te.pdf).
• An employee may perform services on a temporary or less than full-time basis.
• The right to control is the most important factor in determining an employer-employee relationship.
• The EDD has several resources available to help you correctly classify your workers.
edd.ca.gov Taxpayer Assistance Center 1-888-745-3886
DE 44 Rev. 46 (1-20) (INTERNET) Page 8 of 118
WHAT ARE STATE PAYROLL TAXES?
The EDD administers the following California payroll tax programs:
• Unemployment Insurance Tax • State Disability Insurance Tax
• Employment Training Tax • California Personal Income Tax withholding
NOTE: Paid Family Leave is a component of the SDI program.
UI and ETT are employer paid contributions. SDI and PIT are withheld from employee wages. Wages are generally
subject to all four payroll taxes unless otherwise stated.
SUBJECT WAGES
Generally, all wages, unless excluded under the California Unemployment Insurance Code, are considered
subject wages and are used to determine the amount of Unemployment Insurance (UI) and State Disability
Insurance and Paid Family Leave benefits a claimant should receive. Subject wages are the full amount of wages,
regardless of the UI and SDI taxable wage limits. Refer to the inside front cover for UI/SDI taxable wage limits.
Enter the Total Subject Wages in “Item F” for each employee on the Quarterly Contribution Return and Report of
Wages (Continuation) (DE 9C). Certain types of employment and payments are not considered subject. Refer to
Information Sheet: Types of Employment (DE 231TE) and Information Sheet: Types of Payments (DE 231TP)
(edd.ca.gov/payroll_taxes/forms_and_publications.htm) or contact the Taxpayer Assistance Center at
1-888-745-3886.
NOTE: Some wages excluded from PIT withholding are still considered PIT wages and must be reported to the EDD;
for example, wages paid to agricultural workers.
ARE SUBJECT WAGES AND PERSONAL INCOME TAX WAGES THE SAME?
In most situations, when wages are subject to UI, ETT, SDI, and PIT withholding, subject wages and PIT wages are
the same. Examples of when subject wages and PIT wages are different are:
• Employee salary reduction contributions to a qualified retirement or pension plan are generally included as
subject wages, but are not reportable as PIT wages. Refer to the “Retirement and Pension Plans” section of
Information Sheet: Types of Payments (DE 231TP) (edd.ca.gov/pdf_pub_ctr/de231tp.pdf) or contact the
Taxpayer Assistance Center at 1-888-745-3886.
• Under certain situations, wages paid to family employees (a child under age of 18 years employed by own
father or mother, an individual employed by own son, daughter, spouse, or registered domestic partner) may
not be reported as subject wages but are reportable as PIT wages. Refer to the “Family Employees” section
of Information Sheet: Types of Employment (DE 231TE) (edd.ca.gov/pdf_pub_ctr/de231te.pdf) or contact
the Taxpayer Assistance Center at 1-888-745-3886.
• Payments made to employees of churches are not reported as subject wages, but are reportable as
PIT wages. Refer to the “Nonprofit Organization Employees” section of Information Sheet: Types of
Employment (DE 231TE) (edd.ca.gov/pdf_pub_ctr/de231te.pdf) or contact the Taxpayer Assistance Center at
1-888-745-3886.
Meals and lodging that are provided free of charge or at a reduced rate to an employee are wages. If your employees
are covered under a contract of employment or union agreement, the taxable value of meals and lodging cannot be
less than the estimated value stated in the contract or agreement. Meals and lodging furnished for the employer’s
convenience and on the employer’s premises are not subject to PIT.
If the cash value is not stated in an employment contract or union agreement, please refer to the table below for the
value of the meals and/or lodging. To determine the value of lodging, multiply the amount you could rent the property
for (ordinary rental value) by 66 2/3 percent (0.6667). Ordinary rental value may be calculated on a monthly or weekly
basis as follows:
For more information on meals and lodging, including values for those provided to maritime employees, visit Payroll
Taxes Rates and Withholding (edd.ca.gov/payroll_taxes/rates_and_withholding.htm) or contact the Taxpayer
Assistance Center at 1-888-745-3886. If outside the U.S. or Canada, call 1-916-464-3502.
For historical rate information for the last eight years, visit the Tax Rates, Wage Limits, and Value of Meals and
Lodging (DE 3395) (edd.ca.gov/pdf_pub_ctr/de3395.pdf).
ADDITIONAL INFORMATION
If Then
Employee does not file a DE 4 You may use the existing withholding certificate in your file to withhold. If you
have no existing withholding certificate from the employee, then you must use
Single with Zero withholding allowance.
Exception: Do not withhold any California PIT from wages of employees who have
filed “EXEMPT” on their Form D-4 unless you receive a written notice from the IRS
or Franchise Tax Board (FTB) to withhold at a special rate. To maintain “EXEMPT”
status, the employee must file a new Form D-4 each year on or before February 15.
Employee files a DE 4 You must use the DE 4 to calculate and withhold California PIT.
Employee’s marital status Request the employee to correct the Form DE 4 or submit a new one. Until the
cannot be determined from the new or corrected form is received, consider the employee as Single with Zero
Form DE 4 withholding allowances for California PIT withholding purposes.
Employee admits that Form When you receive an invalid Form DE 4, do not use it to calculate PIT
DE 4 is false withholding. Tell the employee that it is invalid and ask for another one. If the
employee does not give you a valid one, withhold PIT as if the employee was
single and claiming no withholding allowances. However, if you have an earlier
Form W-4 of DE 4 for this worker that is valid, withhold as you did before.
The requirements for a complete exemption from state wage withholding are the same as the federal requirements.
You shall not deduct and withhold any tax upon a payment of wages made to an employee if there is in effect, for
the federal income tax purposes, with respect to the payment a withholding exemption certificate furnished to the
employer by the employee which contains statements that:
• The employee incurred no liability for federal income tax imposed for the preceding taxable year; and
• The employee anticipates that they will incur no liability for federal income tax for the current taxable year.
A Form DE 4 claiming exemption from withholding is valid for only the calendar year in which it is filed with the
employer. To continue to be exempt from withholding in the next year, an employee must give you a new DE 4
claiming exempt status by February 15 of that year. If the employee does not give you a new Form DE 4, withhold tax
as if the employee is Single, with Zero withholding allowances. However, if you have an earlier Form W-4 or DE 4 (not
claiming exempt status) for this employee that is valid, withhold as you did before.
Employers must retain the federal Form W-4 and state DE 4 payroll records.
The Form DE 4 is considered invalid* if either of the following two conditions exist:
• The employee makes major changes to Form DE 4, such as crossing out words or writing more than is asked.
• The employee admits that Form DE 4 is false.
When you receive an invalid Form W-4 or DE 4, do not use it to calculate PIT withholding. Tell the employee that it is
invalid and ask for another one. If the employee does not give you a valid one, withhold PIT as if the employee was
single and claiming no withholding allowances. However, if you have an earlier Form W-4 or DE 4 for this worker that
is valid, withhold as you did before.
The reporting of the certificates to the IRS shall satisfy state reporting requirements. A federal determination that a
withholding exemption certificate is invalid or incorrect shall also be effective for state withholding purposes. Thus, if
you are instructed by the IRS to withhold as though an employee were a single person claiming no exemptions, then
you must do likewise for state withholding purposes. If the IRS specifies marital status and the permissible number
of exemptions an employee may claim, such a federal determination shall also be effective for state withholding
purposes.
The Franchise Tax Board or the EDD may, by special direction in writing, require you, as the employer, to submit a
Form W-4 or DE 4 when such forms are necessary for the administration of the withholding tax programs.
*Pursuant to section 31.3402(f)(2)-1(e) of title 26, Code of Federal Regulations, and section 4340-1(b) of title 22,
California Code of Regulations.
If employees rely on the Form W-4 instructions when calculating California withholding allowances, their California PIT
could be significantly underwithheld. This is particularly true if the household income is derived from more than one
source. If an employee wants more California PIT withheld than the schedules and the alternate methods allow, the
employee should either request additional withholding or, if married, indicate “single” on the DE 4. For more information,
refer to the DE 4 form and instructions.
If the supplemental wage is given to the employee at the same time as the employee’s regular wages are paid, you
are required to treat the sum of the payments as regular wages and withhold PIT based on the regular payroll period
using the PIT withholding schedules.
If the supplemental wage is not given to the employee at the same time as the employee’s regular wages are paid,
you may use either of the following two options:
1. Compute the amount of PIT to withhold from the supplemental wage based on the combined regular wages
and the supplemental wage. Compute the PIT withholding on the total of the supplemental wage and the
current or most recent regular (gross) wage payment using the PIT withholding schedules. From that amount,
subtract the PIT you withheld from the regular wages. The difference is the PIT amount you should withhold
from the supplemental wages.
or
2. Withhold the percentage noted below on the following types of supplemental wages without allowing for any
withholding allowances claimed by the employee:
To find out if stock options are wages subject to PIT withholding, obtain Information Sheet: Stock Options
(DE 231SK) (edd.ca.gov/pdf_pub_ctr/de231sk.pdf) or contact the Taxpayer Assistance Center at 1-888-745-3886.
ADDITIONAL INFORMATION
• EDD forms and publications (edd.ca.gov/payroll_taxes/forms_and_publications.htm):
• Information Sheets:
○ Multistate Employment (DE 231D)
○ Withholding From Pensions, Annuities, and Certain Other Deferred Income (DE 231P)
○ Personal Income Tax Withholding – Supplemental Wage Payments, Moving Expense
Reimbursement – WARN Act Payments (DE 231PS)
○ Third-Party Sick Pay (DE 231R)
○ Types of Employment (DE 231TE)
○ Types of Payments (DE 231TP)
The Internal Revenue (IRS) has changed the Form W-4 for the year 2020 and federal allowances have been removed. Since
federal allowances have been removed, the new Form W-4 cannot be used for California purposes. Therefore, all newly hired
employees and any existing employees that wish to change the number of California withholding allowances, must provide a
DE 4 to their employer. If your existing employee wishes to keep the same number of California withholding allowances used in
2019 and prior, then a new DE 4 is not needed.
California provides two methods for determining the amount of wages and salaries to be withheld for state personal income tax:
• METHOD A - WAGE BRACKET TABLE METHOD (Limited to wages/salaries less than $1 million)
• METHOD B - EXACT CALCULATION METHOD
METHOD A provides a quick and easy way to select the appropriate withholding amount, based on the payroll period,
filing status, and number of withholding allowances (regular and additional) if claimed. The STANDARD DEDUCTION
and EXEMPTION ALLOWANCE CREDIT are already included in the wage bracket tables. Even though this method
involves fewer computations than Method B, it cannot be used with your computer in determining amounts to be withheld.
METHOD B may be used to calculate withholding amounts either manually or by computer. This method will give an exact
amount of tax to withhold. To use this method, you must enter the payroll period, filing status, number of withholding
allowances, standard deduction, and exemption allowance credit amounts. These amounts are included in TABLES 1
through 5 of the EXACT CALCULATION section.
If there are any questions concerning the operation/methodology of Method B for computer software, you may contact:
Franchise Tax Board, Statistical Research and Modeling Section – 516, Mail Stop A-351
PO Box 942840, Sacramento, CA 94240.
SPECIAL NOTE FOR MARRIED EMPLOYEES WITH EMPLOYED SPOUSES: To avoid underwithholding of state
income tax liability we recommend that you use one of the following options: Single filing status to compute withholding
amounts for the employee and spouse, or withhold an additional flat amount of tax.
All additional allowances for ESTIMATED DEDUCTIONS that are claimed on a DE 4 must be used to reduce the amount
of salaries and wages subject to withholding by using steps 1 and 2 shown below. If an existing Form W-4 is used for California
withholding purposes, all additional allowances for ESTIMATED DEDUCTIONS claimed must be treated as regular
withholding allowances; unless the employee requests in writing that they be treated in accordance with the following:
1. Subtract the employee's estimated deduction allowance shown in the "TABLE 2 - ESTIMATED DEDUCTION TABLE"
from the gross wages subject to withholding; and
If the DE 4 is used for California withholding purposes, compute the tax to be deducted and withheld based on the total
number of regular withholding allowances claimed on line 1 of the DE 4.
If an existing Form W-4 is used for California withholding purposes, compute the tax to be deducted and withheld based on
the total number of withholding allowances claimed on line 5 of Form W-4, minus the number of additional allowances for
estimated deductions claimed. If Form W-4 does not separately identify the number of additional allowances for estimated
deductions, the employee's request must specify the number claimed. The employee's request will remain in effect until the
employee terminates it by furnishing a signed written notice or by furnishing a DE 4.
Step 1 Determine if the employee's gross wages are less than, or equal to, the amount shown in “TABLE 1 - LOW
INCOME EXEMPTION TABLE”. If so, no income tax is required to be withheld.
Step 2 If the employee claims any additional withholding allowances for deductions, subtract the amount shown in
"TABLE 2 - ESTIMATED DEDUCTION TABLE" from the gross wages.
Step 3 Subtract the number of additional withholding allowances from the total allowances to obtain the net
allowances for tax computational purposes.
Step 4 Refer to the correct wage bracket table to arrive at the amount of tax to be withheld.
___________________________________________________________________________________________________
EXAMPLE A: METHOD A - WAGE BRACKET TABLE METHOD. Weekly earnings of $900, married, and claiming five
withholding allowances on Form W-4 or DE 4, three of which are for estimated deductions.
Step 1 Earnings for the weekly pay period of $900 are GREATER than the amount shown in “TABLE 1 -
LOW INCOME EXEMPTION TABLE” ($579); therefore, income tax should be withheld.
Step 4 Refer to the appropriate wage bracket table (weekly taxable earnings of $842
with two deductions) to arrive at the amount of tax to be withheld................................. $5.97
____________________________________________________________________________________________________
EXAMPLE B: METHOD A - WAGE BRACKET TABLE METHOD. Monthly earnings of $3,500, married, and
claiming six withholding allowances on Form W-4 or DE 4, four of which are for estimated deductions.
Step 1 Earnings for the monthly payroll period are GREATER than the amount shown in "TABLE 1 - LOW
INCOME EXEMPTION TABLE" ($2,507); therefore, income tax should be withheld.
SINGLE, MARRIED
DUAL INCOME MARRIED UNMARRIED
OR MARRIED WITH ALLOWANCES ON DE 4 OR FORM W-4 HEAD OF
PAYROLL PERIOD MULTIPLE EMPLOYERS '0' OR '1' '2' OR MORE HOUSEHOLD
PAYROLL PERIOD
ADDITIONAL
WITHHOLDING BI- SEMI- SEMI- DAILY/
ALLOWANCES * WEEKLY WEEKLY MONTHLY MONTHLY QUARTERLY ANNUAL ANNUAL MISC.
*Number of Additional Withholding Allowances for Estimated Deductions claimed on a DE 4 or Form W-4.
**If the number of Additional Withholding Allowances for Estimated Deductions claimed is greater than 10,
multiply the amount shown for one Additional Allowance by the number claimed.
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
$1 $160
760 800 21.07 18.49 15.90 13.32 10.73 8.15 5.56 2.98 0.39
800 840 23.71 21.13 18.54 15.96 13.37 10.79 8.20 5.62 3.03 0.45
840 880 26.35 23.77 21.18 18.60 16.01 13.43 10.84 8.26 5.67 3.09 0.50
880 920 28.99 26.41 23.82 21.24 18.65 16.07 13.48 10.90 8.31 5.73 3.14
920 960 31.63 29.05 26.46 23.88 21.29 18.71 16.12 13.54 10.95 8.37 5.78
960 1010 34.99 32.41 29.82 27.24 24.65 22.07 19.48 16.90 14.31 11.73 9.14
1010 1070 39.83 37.25 34.66 32.08 29.49 26.91 24.32 21.74 19.15 16.57 13.98
1070 1130 45.11 42.53 39.94 37.36 34.77 32.19 29.60 27.02 24.43 21.85 19.26
1130 1190 50.39 47.81 45.22 42.64 40.05 37.47 34.88 32.30 29.71 27.13 24.54
1190 1250 55.97 53.38 50.80 48.21 45.63 43.04 40.46 37.87 35.29 32.70 30.12
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
$1 $160
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
880 900 13.94 11.36 6.85 4.27 1.68
900 920 14.80 12.21 7.29 4.71 2.12
920 940 15.68 13.09 7.73 5.15 2.56
940 960 16.56 13.97 8.17 5.59 3.00 0.42
960 980 17.44 14.85 8.61 6.03 3.44 0.86
1080 1100 22.72 20.13 13.71 11.12 8.54 5.95 3.37 0.78
1100 1120 23.60 21.01 14.59 12.00 9.42 6.83 4.25 1.66
1120 1140 24.48 21.89 15.47 12.88 10.30 7.71 5.13 2.54
1140 1170 25.58 22.99 16.57 13.98 11.40 8.81 6.23 3.64 1.06
1170 1200 26.90 24.31 17.89 15.30 12.72 10.13 7.55 4.96 2.38
1200 1230 28.22 25.63 19.21 16.62 14.04 11.45 8.87 6.28 3.70 1.11
1230 1260 29.54 26.95 20.53 17.94 15.36 12.77 10.19 7.60 5.02 2.43
1260 1290 30.86 28.27 21.85 19.26 16.68 14.09 11.51 8.92 6.34 3.75 1.17
1290 1320 32.18 29.59 23.17 20.58 18.00 15.41 12.83 10.24 7.66 5.07 2.49
1320 1350 33.50 30.91 24.49 21.90 19.32 16.73 14.15 11.56 8.98 6.39 3.81
1350 1390 35.36 32.77 26.03 23.44 20.86 18.27 15.69 13.10 10.52 7.93 5.35
1390 1430 38.00 35.41 27.79 25.20 22.62 20.03 17.45 14.86 12.28 9.69 7.11
1430 1470 40.64 38.05 29.71 27.13 24.54 21.96 19.37 16.79 14.20 11.62 9.03
1470 1510 43.28 40.69 32.35 29.77 27.18 24.60 22.01 19.43 16.84 14.26 11.67
1510 1550 45.92 43.33 34.99 32.41 29.82 27.24 24.65 22.07 19.48 16.90 14.31
1550 1590 48.56 45.97 37.63 35.05 32.46 29.88 27.29 24.71 22.12 19.54 16.95
1590 1630 51.20 48.61 40.27 37.69 35.10 32.52 29.93 27.35 24.76 22.18 19.59
1630 1670 53.84 51.25 42.91 40.33 37.74 35.16 32.57 29.99 27.40 24.82 22.23
1670 1710 56.48 53.89 45.55 42.97 40.38 37.80 35.21 32.63 30.04 27.46 24.87
1710 1750 59.12 56.53 48.19 45.61 43.02 40.44 37.85 35.27 32.68 30.10 27.51
1750 1790 61.76 59.17 50.83 48.25 45.66 43.08 40.49 37.91 35.32 32.74 30.15
1790 1830 64.40 61.81 53.47 50.89 48.30 45.72 43.13 40.55 37.96 35.38 32.79
1830 1890 67.98 65.40 56.77 54.19 51.60 49.02 46.43 43.85 41.26 38.68 36.09
1890 1960 73.70 71.12 61.06 58.48 55.89 53.31 50.72 48.14 45.55 42.97 40.38
1960 2040 80.30 77.72 67.45 64.87 62.28 59.70 57.11 54.53 51.94 49.36 46.77
2040 2120 87.34 84.76 74.49 71.91 69.32 66.74 64.15 61.57 58.98 56.40 53.81
2120 2205 94.60 92.02 81.75 79.17 76.58 74.00 71.41 68.83 66.24 63.66 61.07
2205 2295 102.30 99.72 89.45 86.87 84.28 81.70 79.11 76.53 73.94 71.36 68.77
2295 2385 110.63 108.05 97.37 94.79 92.20 89.62 87.03 84.45 81.86 79.28 76.69
2385 2475 119.84 117.25 105.74 103.16 100.57 97.99 95.40 92.82 90.23 87.65 85.06
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
$1 $250
1170 1270 24.84 22.25 19.67 17.08 14.50 11.91 9.33 6.74 4.16 1.57
1270 1370 31.44 28.85 26.27 23.68 21.10 18.51 15.93 13.34 10.76 8.17 5.59
1370 1470 38.04 35.45 32.87 30.28 27.70 25.11 22.53 19.94 17.36 14.77 12.19
1470 1570 46.06 43.47 40.89 38.30 35.72 33.13 30.55 27.96 25.38 22.79 20.21
1570 1670 54.86 52.27 49.69 47.10 44.52 41.93 39.35 36.76 34.18 31.59 29.01
1670 1770 64.11 61.52 58.94 56.35 53.77 51.18 48.60 46.01 43.43 40.84 38.26
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
$1 $260
1720 1840 56.66 51.49 46.32 41.15 35.98 30.81 25.64 20.47 15.30 10.13 4.96
1840 1960 64.58 59.41 54.24 49.07 43.90 38.73 33.56 28.39 23.22 18.05 12.88
1960 2100 75.26 70.09 64.92 59.75 54.58 49.41 44.24 39.07 33.90 28.73 23.56
2100 2240 87.58 82.41 77.24 72.07 66.90 61.73 56.56 51.39 46.22 41.05 35.88
2240 2380 99.90 94.73 89.56 84.39 79.22 74.05 68.88 63.71 58.54 53.37 48.20
2380 2520 112.96 107.79 102.62 97.45 92.28 87.11 81.94 76.77 71.60 66.43 61.26
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
$1 $260
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE…
1500 1540 22.17 17.00 11.83 6.66 1.49
1540 1580 23.05 17.88 12.71 7.54 2.37
1580 1620 23.93 18.76 13.59 8.42 3.25
1620 1660 24.81 19.64 14.47 9.30 4.13
1660 1700 25.69 20.52 15.35 10.18 5.01
2100 2140 42.79 37.62 32.45 27.28 22.11 16.94 11.77 6.60 1.43
2140 2180 44.55 39.38 34.21 29.04 23.87 18.70 13.53 8.36 3.19
2180 2220 46.31 41.14 35.97 30.80 25.63 20.46 15.29 10.12 4.95
2220 2260 48.07 42.90 37.73 32.56 27.39 22.22 17.05 11.88 6.71 1.54
2260 2300 49.83 44.66 39.49 34.32 29.15 23.98 18.81 13.64 8.47 3.30
2300 2350 51.81 46.64 41.47 36.30 31.13 25.96 20.79 15.62 10.45 5.28 0.11
2350 2400 54.01 48.84 43.67 38.50 33.33 28.16 22.99 17.82 12.65 7.48 2.31
2400 2450 56.21 51.04 45.87 40.70 35.53 30.36 25.19 20.02 14.85 9.68 4.51
2450 2500 58.41 53.24 48.07 42.90 37.73 32.56 27.39 22.22 17.05 11.88 6.71
2500 2550 60.61 55.44 50.27 45.10 39.93 34.76 29.59 24.42 19.25 14.08 8.91
2550 2600 62.81 57.64 52.47 47.30 42.13 36.96 31.79 26.62 21.45 16.28 11.11
2600 2650 65.01 59.84 54.67 49.50 44.33 39.16 33.99 28.82 23.65 18.48 13.31
2650 2700 67.21 62.04 56.87 51.70 46.53 41.36 36.19 31.02 25.85 20.68 15.51
2700 2750 69.73 64.56 59.39 54.22 49.05 43.88 38.71 33.54 28.37 23.20 18.03
2750 2800 73.03 67.86 62.69 57.52 52.35 47.18 42.01 36.84 31.67 26.50 21.33
2800 2850 76.33 71.16 65.99 60.82 55.65 50.48 45.31 40.14 34.97 29.80 24.63
2850 2900 79.63 74.46 69.29 64.12 58.95 53.78 48.61 43.44 38.27 33.10 27.93
2900 2950 82.93 77.76 72.59 67.42 62.25 57.08 51.91 46.74 41.57 36.40 31.23
2950 3000 86.23 81.06 75.89 70.72 65.55 60.38 55.21 50.04 44.87 39.70 34.53
3000 3050 89.53 84.36 79.19 74.02 68.85 63.68 58.51 53.34 48.17 43.00 37.83
3050 3150 94.48 89.31 84.14 78.97 73.80 68.63 63.46 58.29 53.12 47.95 42.78
3150 3250 101.08 95.91 90.74 85.57 80.40 75.23 70.06 64.89 59.72 54.55 49.38
3250 3350 107.68 102.51 97.34 92.17 87.00 81.83 76.66 71.49 66.32 61.15 55.98
3350 3450 114.28 109.11 103.94 98.77 93.60 88.43 83.26 78.09 72.92 67.75 62.58
3450 3550 120.88 115.71 110.54 105.37 100.20 95.03 89.86 84.69 79.52 74.35 69.18
3550 3670 128.14 122.97 117.80 112.63 107.46 102.29 97.12 91.95 86.78 81.61 76.44
3670 3790 136.84 131.67 126.50 121.33 116.16 110.99 105.82 100.65 95.48 90.31 85.14
3790 3910 147.40 142.23 137.06 131.89 126.72 121.55 116.38 111.21 106.04 100.87 95.70
3910 4030 157.96 152.79 147.62 142.45 137.28 132.11 126.94 121.77 116.60 111.43 106.26
4030 4150 168.52 163.35 158.18 153.01 147.84 142.67 137.50 132.33 127.16 121.99 116.82
4150 4300 180.40 175.23 170.06 164.89 159.72 154.55 149.38 144.21 139.04 133.87 128.70
4300 4450 193.60 188.43 183.26 178.09 172.92 167.75 162.58 157.41 152.24 147.07 141.90
4450 4610 207.24 202.07 196.90 191.73 186.56 181.39 176.22 171.05 165.88 160.71 155.54
4610 4770 222.29 217.12 211.95 206.78 201.61 196.44 191.27 186.10 180.93 175.76 170.59
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
$1 $560
2350 2470 47.89 42.72 37.55 32.38 27.21 22.04 16.87 11.70 6.53 1.36
2470 2590 55.62 50.45 45.28 40.11 34.94 29.77 24.60 19.43 14.26 9.09 3.92
2590 2730 64.20 59.03 53.86 48.69 43.52 38.35 33.18 28.01 22.84 17.67 12.50
2730 2870 73.44 68.27 63.10 57.93 52.76 47.59 42.42 37.25 32.08 26.91 21.74
2870 3020 83.75 78.58 73.41 68.24 63.07 57.90 52.73 47.56 42.39 37.22 32.05
3020 3180 97.39 92.22 87.05 81.88 76.71 71.54 66.37 61.20 56.03 50.86 45.69
3180 3350 111.91 106.74 101.57 96.40 91.23 86.06 80.89 75.72 70.55 65.38 60.21
3350 3520 127.70 122.53 117.36 112.19 107.02 101.85 96.68 91.51 86.34 81.17 76.00
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
$1 $300
1700 1750 47.99 42.40 36.81 31.23 25.64 20.05 14.46 8.87 3.29
1750 1800 51.29 45.70 40.11 34.53 28.94 23.35 17.76 12.17 6.59 1.00
1800 1850 54.59 49.00 43.41 37.83 32.24 26.65 21.06 15.47 9.89 4.30
1850 1950 59.54 53.95 48.36 42.78 37.19 31.60 26.01 20.42 14.84 9.25 3.66
1950 2050 66.14 60.55 54.96 49.38 43.79 38.20 32.61 27.02 21.44 15.85 10.26
2050 2170 73.73 68.14 62.55 56.97 51.38 45.79 40.20 34.61 29.03 23.44 17.85
2170 2300 84.73 79.14 73.55 67.97 62.38 56.79 51.20 45.61 40.03 34.44 28.85
2300 2440 96.61 91.02 85.43 79.85 74.26 68.67 63.08 57.49 51.91 46.32 40.73
2440 2580 108.93 103.34 97.75 92.17 86.58 80.99 75.40 69.81 64.23 58.64 53.05
2580 2720 121.99 116.40 110.82 105.23 99.64 94.05 88.46 82.88 77.29 71.70 66.11
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
$1 $300
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
1600 1640 23.41 17.82 8.07 2.48
1640 1680 24.29 18.70 8.95 3.36
1680 1720 25.17 19.58 9.83 4.24
1720 1760 26.05 20.46 10.71 5.12
1760 1800 26.93 21.34 11.59 6.00 0.42
2450 2500 54.23 48.64 34.73 29.15 23.56 17.97 12.38 6.79 1.21
2500 2550 56.43 50.84 36.93 31.35 25.76 20.17 14.58 8.99 3.41
2550 2600 58.63 53.04 39.13 33.55 27.96 22.37 16.78 11.19 5.61 0.02
2600 2650 60.83 55.24 41.33 35.75 30.16 24.57 18.98 13.39 7.81 2.22
2650 2700 63.03 57.44 43.53 37.95 32.36 26.77 21.18 15.59 10.01 4.42
2700 2750 65.23 59.64 45.73 40.15 34.56 28.97 23.38 17.79 12.21 6.62 1.03
2750 2800 67.43 61.84 47.93 42.35 36.76 31.17 25.58 19.99 14.41 8.82 3.23
2800 2850 69.63 64.04 50.13 44.55 38.96 33.37 27.78 22.19 16.61 11.02 5.43
2850 2900 71.83 66.24 52.33 46.75 41.16 35.57 29.98 24.39 18.81 13.22 7.63
2900 2950 74.03 68.44 54.53 48.95 43.36 37.77 32.18 26.59 21.01 15.42 9.83
2950 3000 77.11 71.52 56.73 51.15 45.56 39.97 34.38 28.79 23.21 17.62 12.03
3000 3075 81.23 75.64 59.48 53.90 48.31 42.72 37.13 31.54 25.96 20.37 14.78
3075 3150 86.18 80.59 62.78 57.20 51.61 46.02 40.43 34.84 29.26 23.67 18.08
3150 3225 91.13 85.54 67.48 61.89 56.30 50.72 45.13 39.54 33.95 28.36 22.78
3225 3300 96.08 90.49 72.43 66.84 61.25 55.67 50.08 44.49 38.90 33.31 27.73
3300 3375 101.03 95.44 77.38 71.79 66.20 60.62 55.03 49.44 43.85 38.26 32.68
3375 3475 106.81 101.22 83.15 77.57 71.98 66.39 60.80 55.21 49.63 44.04 38.45
3475 3575 113.41 107.82 89.75 84.17 78.58 72.99 67.40 61.81 56.23 50.64 45.05
3575 3675 120.01 114.42 96.35 90.77 85.18 79.59 74.00 68.41 62.83 57.24 51.65
3675 3775 126.61 121.02 102.95 97.37 91.78 86.19 80.60 75.01 69.43 63.84 58.25
3775 3875 133.21 127.62 109.55 103.97 98.38 92.79 87.20 81.61 76.03 70.44 64.85
3875 3975 139.81 134.22 116.15 110.57 104.98 99.39 93.80 88.21 82.63 77.04 71.45
3975 4175 151.33 145.75 126.05 120.47 114.88 109.29 103.70 98.11 92.53 86.94 81.35
4175 4375 168.93 163.35 141.12 135.53 129.95 124.36 118.77 113.18 107.59 102.01 96.42
4375 4575 186.53 180.95 158.72 153.13 147.55 141.96 136.37 130.78 125.19 119.61 114.02
4575 4875 208.53 202.95 180.72 175.13 169.55 163.96 158.37 152.78 147.19 141.61 136.02
4875 5175 235.19 229.60 207.12 201.53 195.95 190.36 184.77 179.18 173.59 168.01 162.42
5175 5475 265.88 260.29 235.37 229.78 224.19 218.60 213.01 207.43 201.84 196.25 190.66
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
$1 $600
2300 2420 40.84 35.25 29.66 24.08 18.49 12.90 7.31 1.72
2420 2540 46.12 40.53 34.94 29.36 23.77 18.18 12.59 7.00 1.42
2540 2660 51.40 45.81 40.22 34.64 29.05 23.46 17.87 12.28 6.70 1.11
2660 2780 58.86 53.27 47.68 42.09 36.50 30.92 25.33 19.74 14.15 8.56 2.98
2780 2900 66.78 61.19 55.60 50.01 44.42 38.84 33.25 27.66 22.07 16.48 10.90
2900 3050 75.69 70.10 64.51 58.92 53.33 47.75 42.16 36.57 30.98 25.39 19.81
3050 3230 86.58 80.99 75.40 69.81 64.22 58.64 53.05 47.46 41.87 36.28 30.70
3230 3430 102.96 97.38 91.79 86.20 80.61 75.02 69.44 63.85 58.26 52.67 47.08
3430 3630 120.56 114.98 109.39 103.80 98.21 92.62 87.04 81.45 75.86 70.27 64.68
3630 3830 139.19 133.60 128.02 122.43 116.84 111.25 105.66 100.08 94.49 88.90 83.31
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
$1 $600
3500 3600 102.58 91.40 80.23 69.05 57.88 46.70 35.52 24.35 13.17 2.00
3600 3700 109.18 98.00 86.83 75.65 64.48 53.30 42.12 30.95 19.77 8.60
3700 3800 115.78 104.60 93.43 82.25 71.08 59.90 48.72 37.55 26.37 15.20 4.02
3800 3900 122.38 111.20 100.03 88.85 77.68 66.50 55.32 44.15 32.97 21.80 10.62
3900 4100 132.28 121.10 109.93 98.75 87.58 76.40 65.22 54.05 42.87 31.70 20.52
4100 4500 154.50 143.32 132.15 120.97 109.79 98.62 87.44 76.27 65.09 53.91 42.74
4500 4900 189.70 178.52 167.35 156.17 144.99 133.82 122.64 111.47 100.29 89.11 77.94
4900 5300 224.90 213.72 202.55 191.37 180.19 169.02 157.84 146.67 135.49 124.31 113.14
5300 5750 267.00 255.83 244.65 233.47 222.30 211.12 199.95 188.77 177.59 166.42 155.24
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
$1 $600
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
2860 2920 39.11 27.94 8.44
2920 2980 40.43 29.26 9.76
2980 3040 41.75 30.58 11.08
3040 3100 43.07 31.90 12.40 1.23
3100 3160 44.39 33.22 13.72 2.55
4800 4900 104.06 92.88 65.07 53.89 42.72 31.54 20.36 9.19
4900 5000 108.46 97.28 69.47 58.29 47.12 35.94 24.76 13.59 2.41
5000 5100 112.86 101.68 73.87 62.69 51.52 40.34 29.16 17.99 6.81
5100 5200 117.26 106.08 78.27 67.09 55.92 44.74 33.56 22.39 11.21 0.04
5200 5300 121.66 110.48 82.67 71.49 60.32 49.14 37.96 26.79 15.61 4.44
5300 5400 126.06 114.88 87.07 75.89 64.72 53.54 42.36 31.19 20.01 8.84
5400 5500 130.46 119.28 91.47 80.29 69.12 57.94 46.76 35.59 24.41 13.24 2.06
5500 5600 134.86 123.68 95.87 84.69 73.52 62.34 51.16 39.99 28.81 17.64 6.46
5600 5700 139.26 128.08 100.27 89.09 77.92 66.74 55.56 44.39 33.21 22.04 10.86
5700 5800 143.66 132.48 104.67 93.49 82.32 71.14 59.96 48.79 37.61 26.44 15.26
5800 5900 148.06 136.88 109.07 97.89 86.72 75.54 64.36 53.19 42.01 30.84 19.66
5900 6000 154.21 143.04 113.47 102.29 91.12 79.94 68.76 57.59 46.41 35.24 24.06
6000 6200 164.11 152.94 120.07 108.89 97.72 86.54 75.36 64.19 53.01 41.84 30.66
6200 6400 177.31 166.14 130.01 118.83 107.66 96.48 85.31 74.13 62.95 51.78 40.60
6400 6600 190.51 179.34 143.21 132.03 120.86 109.68 98.51 87.33 76.15 64.98 53.80
6600 6800 203.71 192.54 156.41 145.23 134.06 122.88 111.71 100.53 89.35 78.18 67.00
6800 7000 216.91 205.74 169.61 158.43 147.26 136.08 124.91 113.73 102.55 91.38 80.20
7000 7200 230.11 218.94 182.81 171.63 160.46 149.28 138.11 126.93 115.75 104.58 93.40
7200 7400 243.31 232.14 196.01 184.83 173.66 162.48 151.31 140.13 128.95 117.78 106.60
7400 7600 256.51 245.34 209.21 198.03 186.86 175.68 164.51 153.33 142.15 130.98 119.80
7600 7800 269.71 258.54 222.41 211.23 200.06 188.88 177.71 166.53 155.35 144.18 133.00
7800 8000 282.91 271.74 235.61 224.43 213.26 202.08 190.91 179.73 168.55 157.38 146.20
8000 8200 298.27 287.09 248.81 237.63 226.46 215.28 204.11 192.93 181.75 170.58 159.40
8200 8400 315.87 304.69 262.01 250.83 239.66 228.48 217.31 206.13 194.95 183.78 172.60
8400 8600 333.47 322.29 277.85 266.67 255.49 244.32 233.14 221.97 210.79 199.61 188.44
8600 8900 355.47 344.29 299.85 288.67 277.49 266.32 255.14 243.97 232.79 221.61 210.44
8900 9300 386.27 375.09 330.65 319.47 308.29 297.12 285.94 274.77 263.59 252.41 241.24
9300 9800 425.87 414.69 370.25 359.07 347.89 336.72 325.54 314.37 303.19 292.01 280.84
9800 10300 470.38 459.21 414.25 403.07 391.89 380.72 369.54 358.37 347.19 336.01 324.84
10300 10800 521.53 510.36 460.50 449.33 438.15 426.98 415.80 404.62 393.45 382.27 371.10
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
$1 1400
5300 5500 115.07 103.90 92.72 81.54 70.37 59.19 48.02 36.84 25.66 14.49 3.31
5500 5700 128.27 117.10 105.92 94.74 83.57 72.39 61.22 50.04 38.86 27.69 16.51
5700 5900 141.47 130.30 119.12 107.94 96.77 85.59 74.42 63.24 52.06 40.89 29.71
5900 6150 156.32 145.15 133.97 122.79 111.62 100.44 89.27 78.09 66.91 55.74 44.56
6150 6450 174.47 163.30 152.12 140.94 129.77 118.59 107.42 96.24 85.06 73.89 62.71
6450 6850 205.05 193.87 182.70 171.52 160.34 149.17 137.99 126.82 115.64 104.46 93.29
6850 7250 240.25 229.07 217.90 206.72 195.54 184.37 173.19 162.02 150.84 139.66 128.49
7250 7650 277.36 266.19 255.01 243.83 232.66 221.48 210.31 199.13 187.95 176.78 165.60
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
$1 $28
28 30 0.13
30 32 0.15
32 34 0.17
34 36 0.19
36 38 0.22
38 40 0.24
40 42 0.26
42 44 0.28
44 46 0.30
46 48 0.33
48 50 0.35
50 54 0.39
54 58 0.47
58 62 0.56 0.05
62 66 0.65 0.13
66 70 0.74 0.22
70 74 0.83 0.31
74 78 0.91 0.40
78 82 1.00 0.49
82 86 1.09 0.57 0.06
151 156 4.05 3.53 3.02 2.50 1.98 1.47 0.95 0.43
156 161 4.38 3.86 3.35 2.83 2.31 1.80 1.28 0.76 0.25
161 166 4.71 4.19 3.68 3.16 2.64 2.13 1.61 1.09 0.58 0.06
166 171 5.04 4.52 4.01 3.49 2.97 2.46 1.94 1.42 0.91 0.39
171 176 5.37 4.85 4.34 3.82 3.30 2.79 2.27 1.75 1.24 0.72 0.20
176 181 5.70 5.18 4.67 4.15 3.63 3.12 2.60 2.08 1.57 1.05 0.53
181 186 6.03 5.51 5.00 4.48 3.96 3.45 2.93 2.41 1.90 1.38 0.86
186 196 6.53 6.01 5.49 4.98 4.46 3.94 3.42 2.91 2.39 1.87 1.36
196 206 7.35 6.84 6.32 5.80 5.28 4.77 4.25 3.73 3.22 2.70 2.18
206 216 8.23 7.72 7.20 6.68 6.16 5.65 5.13 4.61 4.10 3.58 3.06
216 236 9.55 9.04 8.52 8.00 7.48 6.97 6.45 5.93 5.42 4.90 4.38
236 256 11.41 10.89 10.37 9.86 9.34 8.82 8.30 7.79 7.27 6.75 6.24
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
$1 $32
32 34 0.17
34 36 0.19
36 38 0.22
38 40 0.24
40 42 0.26
42 44 0.28
44 46 0.30
46 48 0.33
48 50 0.35
50 52 0.37
0.00
52 54 0.39
54 56 0.41
56 58 0.44
58 60 0.46
60 62 0.48
62 64 0.50
64 66 0.52 0.01
66 68 0.55 0.03
68 70 0.57 0.05
70 72 0.59 0.07
72 74 0.61 0.09
74 76 0.63 0.12
76 78 0.66 0.14
78 80 0.68 0.16
80 82 0.70 0.18
82 84 0.72 0.20
84 86 0.74 0.23
86 88 0.78 0.27
88 90 0.83 0.31
90 92 0.87 0.35
92 94 0.91 0.40
94 96 0.96 0.44
96 98 1.00 0.49
98 100 1.05 0.53 0.01
100 102 1.09 0.57 0.06
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
150 154 2.21 1.70 1.18 0.66 0.14
154 158 2.30 1.78 1.27 0.75 0.23
158 162 2.39 1.87 1.35 0.84 0.32
162 166 2.48 1.96 1.44 0.93 0.41
166 170 2.56 2.05 1.53 1.01 0.50
215 220 4.53 4.02 3.50 2.98 2.47 1.95 1.43 0.92 0.40
220 225 4.75 4.24 3.72 3.20 2.69 2.17 1.65 1.14 0.62 0.10
225 230 4.97 4.46 3.94 3.42 2.91 2.39 1.87 1.36 0.84 0.32
230 235 5.19 4.68 4.16 3.64 3.13 2.61 2.09 1.58 1.06 0.54 0.02
235 240 5.41 4.90 4.38 3.86 3.35 2.83 2.31 1.80 1.28 0.76 0.24
240 245 5.63 5.12 4.60 4.08 3.57 3.05 2.53 2.02 1.50 0.98 0.46
245 250 5.85 5.34 4.82 4.30 3.79 3.27 2.75 2.24 1.72 1.20 0.68
250 255 6.07 5.56 5.04 4.52 4.01 3.49 2.97 2.46 1.94 1.42 0.90
255 260 6.29 5.78 5.26 4.74 4.23 3.71 3.19 2.68 2.16 1.64 1.12
260 265 6.51 6.00 5.48 4.96 4.45 3.93 3.41 2.90 2.38 1.86 1.34
265 270 6.73 6.22 5.70 5.18 4.67 4.15 3.63 3.12 2.60 2.08 1.56
270 275 6.98 6.46 5.94 5.43 4.91 4.39 3.88 3.36 2.84 2.32 1.81
275 280 7.31 6.79 6.27 5.76 5.24 4.72 4.21 3.69 3.17 2.65 2.14
280 285 7.64 7.12 6.60 6.09 5.57 5.05 4.54 4.02 3.50 2.98 2.47
285 290 7.97 7.45 6.93 6.42 5.90 5.38 4.87 4.35 3.83 3.31 2.80
290 300 8.46 7.95 7.43 6.91 6.39 5.88 5.36 4.84 4.33 3.81 3.29
300 310 9.12 8.61 8.09 7.57 7.05 6.54 6.02 5.50 4.99 4.47 3.95
310 320 9.78 9.27 8.75 8.23 7.71 7.20 6.68 6.16 5.65 5.13 4.61
320 330 10.44 9.93 9.41 8.89 8.37 7.86 7.34 6.82 6.31 5.79 5.27
330 340 11.10 10.59 10.07 9.55 9.03 8.52 8.00 7.48 6.97 6.45 5.93
340 350 11.76 11.25 10.73 10.21 9.69 9.18 8.66 8.14 7.63 7.11 6.59
350 360 12.42 11.91 11.39 10.87 10.35 9.84 9.32 8.80 8.29 7.77 7.25
360 375 13.25 12.73 12.21 11.70 11.18 10.66 10.15 9.63 9.11 8.59 8.08
375 390 14.52 14.01 13.49 12.97 12.46 11.94 11.42 10.91 10.39 9.87 9.35
390 405 15.84 15.33 14.81 14.29 13.78 13.26 12.74 12.23 11.71 11.19 10.67
405 425 17.38 16.87 16.35 15.83 15.32 14.80 14.28 13.77 13.25 12.73 12.21
425 450 19.36 18.85 18.33 17.81 17.30 16.78 16.26 15.75 15.23 14.71 14.19
450 475 21.58 21.06 20.55 20.03 19.51 18.99 18.48 17.96 17.44 16.93 16.41
475 505 24.39 23.88 23.36 22.84 22.32 21.81 21.29 20.77 20.26 19.74 19.22
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
...THE AMOUNT OF INCOME TAX TO BE WITHHELD SHALL BE...
$1 $56
56 58 0.24
58 60 0.27
60 62 0.29
62 64 0.31
64 66 0.33
66 68 0.35
68 70 0.38
70 72 0.40
72 74 0.42
74 76 0.44
76 78 0.46
78 80 0.49
80 82 0.51 0.00
82 84 0.53 0.01
84 86 0.55 0.03
86 88 0.57 0.06
88 90 0.60 0.08
90 92 0.62 0.10
92 94 0.64 0.12
94 96 0.66 0.14
236 246 4.78 4.26 3.74 3.23 2.71 2.19 1.68 1.16 0.64 0.13
246 256 5.42 4.90 4.38 3.87 3.35 2.83 2.32 1.80 1.28 0.77 0.25
256 266 6.08 5.56 5.04 4.53 4.01 3.49 2.98 2.46 1.94 1.43 0.91
266 281 6.90 6.39 5.87 5.35 4.84 4.32 3.80 3.28 2.77 2.25 1.73
281 296 7.89 7.38 6.86 6.34 5.83 5.31 4.79 4.27 3.76 3.24 2.72
296 316 9.38 8.86 8.35 7.83 7.31 6.80 6.28 5.76 5.24 4.73 4.21
316 336 11.14 10.62 10.11 9.59 9.07 8.56 8.04 7.52 7.00 6.49 5.97
336 356 13.02 12.50 11.98 11.47 10.95 10.43 9.91 9.40 8.88 8.36 7.85
This method is based upon applying a given percentage to the wages (after deductions) which fall within a taxable
income class, adding to this product the accumulated tax for all lower tax brackets; and then subtracting a tax credit
based upon the number of allowances claimed on the Employee's Withholding Allowance Certificate (Form W-4 or DE 4).
This method also takes into consideration the special treatment of additional allowances for estimated deductions.
Step 1 Determine if the employee's gross wages are less than, or equal to, the amount shown in “TABLE 1 -
LOW INCOME EXEMPTION TABLE.” If so, no income tax is required to be withheld.
Step 2 If the employee claims any additional withholding allowances for estimated deductions on a DE 4,
subtract the amount shown in “TABLE 2 - ESTIMATED DEDUCTION TABLE” from the gross wages.
Step 3 Subtract the standard deduction amount shown in “TABLE 3 - STANDARD DEDUCTION TABLE” to
arrive at the employee's taxable income.
Step 4 Use "TABLE 5 - TAX RATE TABLE” for the payroll period and marital status to find the applicable line on
which the taxable income is located. Perform the indicated calculations to arrive at the computed tax
liability.
Step 5 Subtract the tax credit shown in “TABLE 4 - EXEMPTION ALLOWANCE TABLE”* from the computed tax
liability to arrive at the amount of tax to be withheld.
*If the employee uses additional allowances claimed for estimated deductions, such allowances MUST NOT be used in the
determination of tax credits to be subtracted.
EXAMPLE A: Weekly earnings of $210, single, and claiming one withholding allowance on Form W-4 or DE 4.
Step 1 Earnings for the weekly payroll period are LESS than the amount shown in "TABLE 1 - LOW INCOME
EXEMPTION TABLE" ($289); therefore, no income tax is to be withheld.
EXAMPLE B: Biweekly earnings of $1,250, married, and claiming three withholding allowances, one of which is for estimated
deductions.
Step 1 Earnings for the biweekly payroll period are GREATER than the amount shown in "TABLE 1 - LOW
INCOME EXEMPTION TABLE" ($1,157); therefore, income tax should be withheld.
NOTE: Table 5 provides a method comparable to the federal alternative method for percentage calculation of
withholding. This method is a minor simplification of the exact calculation method described above in that
the tax rate applies to the total taxable income with the excess amount subtracted.
EXAMPLE C: Monthly earnings of $4,100 married, and claiming five withholding allowances on Form W-4 or DE 4.
Step 1 Earnings for the monthly payroll period are GREATER than the amount shown in "TABLE 1 - LOW
INCOME EXEMPTION TABLE" ($2,507.00); therefore, income tax should be withheld.
EXAMPLE D: Weekly earnings of $800, unmarried head of household, three withholding allowances on Form W-4 or DE 4.
Step 1 Earnings for the weekly payroll period are GREATER than the amount shown in "TABLE 1 - LOW
INCOME EXEMPTION TABLE" ($579); therefore, income tax should be withheld.
EXAMPLE E: Semi-monthly earnings of $1,800, married, and claiming four allowances on Form W-4 or DE 4.
Step 1 Earnings for the semi-monthly payroll period are GREATER than the amount shown in "TABLE 1 - LOW
INCOME EXEMPTION TABLE" ($1,253); therefore, income tax should be withheld.
Annualized wages and salary (24 x $1,800):................ $43,200.00
Step 2 Not applicable - no estimated deduction allowance claimed.
Step 3 Subtract amount from "TABLE 3 - STANDARD DEDUCTION TABLE:"..... -9,074.00
Taxable income:................................................ $34,126.00
Step 4 Tax computation from “TABLE 5 - TAX RATE TABLE:”
• Entry covering $34,126 (over $17,618 but not over $41,766).
• 2.2% of amount over $34,126 (.022 x [$34,126 - $17,618]):... $363.18
• Plus marginal tax amount:................................... +193.80
• Computed annual tax:........................................ $556.98
Step 5 Subtract amount from "TABLE 4 - EXEMPTION ALLOWANCE TABLE" for
four regular withholding allowances:.............................. -536.80
Annual amount of tax to be withheld:........................... $20.18
Divide by number of payroll periods in year (24):.............. $0.84
NOTE: Employers may determine the amount of income tax to be withheld for an annual payroll period and
prorate the tax back to the payroll period. This method may be useful to employers who have employees
being paid for more than one payroll period and want to conserve computer memory by storing only the
annual tax rates, wage brackets, deduction values, and tax credits.
EXAMPLE F: Annual earnings of $45,000, monthly pay period, married, and claiming four allowances on Form W-4 or DE 4.
Step 1 Earnings for the annual payroll period are GREATER than the amount shown in "TABLE 1 - LOW
INCOME EXEMPTION TABLE" ($30,083); therefore, income tax should be withheld.
NOTE: Employers may determine the amount of income tax to be withheld for an annual payroll period and figure
the tax for the payroll period. This method may be useful to employers who have employees being paid for
a lump sum, or a yearly amount not withheld on; and want to conserve computer memory by storing only the
annual tax rates, wage brackets, deduction values, and tax credits.
SINGLE, MARRIED
DUAL INCOME MARRIED UNMARRIED
OR MARRIED WITH ALLOWANCES ON DE 4 OR W-4 HEAD OF
PAYROLL PERIOD MULTIPLE EMPLOYERS '0' OR '1' '2' OR MORE HOUSEHOLD
PAYROLL PERIOD
ADDITIONAL
WITHHOLDING BI- SEMI- SEMI- DAILY/
ALLOWANCES * WEEKLY WEEKLY MONTHLY MONTHLY QUARTERLY ANNUAL ANNUAL MISC.
*Number of Additional Withholding Allowances for Estimated Deductions claimed on Form DE 4 or W-4.
**If the number of Additional Withholding Allowances for Estimated Deductions claimed is greater than 10,
multiply the amount shown for one Additional Allowance by the number claimed.
SINGLE, MARRIED
DUAL INCOME MARRIED UNMARRIED
OR MARRIED WITH ALLOWANCES ON DE 4 OR W-4 HEAD OF
PAYROLL PERIOD MULTIPLE EMPLOYERS '0' OR '1' '2' OR MORE HOUSEHOLD
PAYROLL PERIOD
ALLOWANCES
ON DE 4 OR BI- SEMI- SEMI- DAILY/
W-4 WEEKLY WEEKLY MONTHLY MONTHLY QUARTERLY ANNUAL ANNUAL MISC.
* If the number of allowances claimed exceeds 10, you may determine the amount of tax credit to be allowed by
multiplying the amount for one allowance by the total number of allowances.
For example, the amount of tax credit for a married taxpayer with 15 allowances, as determined on Form DE 4 or W-4,
on a weekly payroll period would be $38.70.
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
California passed Assembly Bill (AB) 1245 (Chapter 222, Statutes of 2015) requiring all employers to electronically
submit employment tax returns, wage reports, and payroll tax deposits to the Employment Development
Department. Depending on the number of employees, the requirement was phased-in as follows:
• January 1, 2017 - Employers with 10 or more employees are required to electronically submit employment
tax returns, wage reports, and payroll tax deposits.
• January 1, 2018 - All remaining employers are required to electronically file and pay.
• January 1, 2019 - Noncompliance penalties will be charged in accordance with sections 1112(b), 1112.1(a)
and 1114(b) of the California Unemployment Insurance Code (CUIC), in addition to any other penalties
imposed by the CUIC.
Penalty
Paper Submittal Penalty
Tax Return: $50 per return
• Quarterly Contribution Return and Report of Wages (DE 9)
• Employer of Household Worker(s) Annual Payroll Tax Return (DE 3HW)
• Quarterly Contribution Return (DE 3D)
Wage Report: $20 per wage item
• Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C)
• Employer of Household Worker(s) Quarterly Report of Wages and Withholdings
(DE 3BHW)
Payroll Tax Deposit: 15% of amount due
• Payroll Tax Deposit (DE 88)
Waiver
Employers may request a waiver from the mandate due to lack of automation, severe economic hardship,
current exemption from the federal government, or other good cause. You can download the E-file and E-pay
Mandate Waiver Request (DE 1245W) (edd.ca.gov/pdf_pub_ctr/de1245w.pdf), order the waiver online at
Forms (edd.ca.gov/forms), or contact the Taxpayer Assistance Center at 1-888-745-3886. Instructions and
mailing address are on the waiver request form.
For more information, visit e-file and e-pay mandate and related noncompliance penalties
(edd.ca.gov/EfileMandate).
e-Services for Business allows employers and employer representatives/payroll agents to manage employer payroll tax
accounts online at no cost. With a simple one-time enrollment, e-Services for Business can be used to electronically
submit employment tax returns, wage reports, and payments 24 hours a day, 7 days a week.
Features:
• Register for an employer payroll tax account number.
• File, adjust, and print returns/reports.
• Make payments.
• View and update account information.
• Close or re-open an employer payroll tax account.
• View notices and letters regarding registration, payments, returns,
and more.
• File an Unemployment Insurance (UI) benefit charge or UI rate protest.
• File a Power of Attorney (POA) Declaration (DE 48).
• File a Report of New Employee(s) (DE 34).*
• File a Report of Independent Contractor(s) (DE 542).*
Benefits:
• Fulfills the e-file and e-pay mandate for employers.
• No cost to enroll and use.
• Provides confirmation when your return, report, or payment is received.
• Saves time by saving basic account information for future transactions.
• Reduces paper and mailing cost.
*The DE 34 and DE 542 may be filed from 5 a.m. to 12 midnight, Pacific Time, 7 days a week. All other services on
this may be accessed 24 hours a day, 7 days a week.
Express Pay
Employers and employer representatives/payroll agents can make electronic tax payments with no enrollment
necessary. Just enter an employer payroll tax account number or letter ID and payment information to submit
a payroll tax deposit or account payment online, visit (edd.ca.gov/Payroll_Taxes/File_and_Pay) to make a
payment today.
e-Services for Business Tutorials and User Guide
The EDD has created tutorials (edd.ca.gov/payroll_taxes/e-Services_for_Business_tutorials.htm) so employers and
employer representatives/payroll agents can become familiar with e-Services for Business.
The e-Services for Business User Guide (DE 160) at (edd.ca.gov/pdf_pub_ctr/de160.pdf) provides detailed step-
by-step instructions on how to complete common tasks within e-Services for Business such as, creating a username
and password, filing a tax return and wage report, making a payroll tax deposit, and more.
Under California law, you are required to report specific information periodically or upon notification or request.
Timely filing of the required forms will avoid penalty and interest charges. In addition, it will enable the Employment
Development Department (EDD) to pay Unemployment Insurance, State Disability Insurance, and Paid Family Leave
benefits. Timely filing also assists the California Department of Child Support Services and the Department of Justice
in the collection of delinquent child support obligations.
If you acquire an ongoing business and employ any of the former employees, they are considered new hires, and
you should report them to the EDD’s NER. The NER assists California’s Department of Child Support Services and
Department of Justice in locating parents to collect delinquent child support payments. Employers must also report
the actual start-of-work date (not the date hired) for each newly hired or rehired employee so that the NER data can
be cross-matched to the UI benefit payment file. This will result in the early detection and prevention of UI benefit
overpayments.
• EDD eight-digit employer payroll tax account number • First name, middle initial, and last name
(if applicable) • Social Security number
• Federal employer identification number (FEIN) • Home address
• Business name • Start-of-work date
• Business address
• Contact person and phone number
Refer to sample DE 34 form on page 54.
Filing an Informal Report
If you are not able to obtain a DE 34 by the due date, file an informal report or a copy of the employee’s Form W-4 to
avoid penalty and interest charges. Your informal report must include all the information listed in the table above.
Mail or fax your new employee information to:
Employment Development Department
Document Management Group, MIC 96
PO Box 997016
West Sacramento, CA 95799-7016
Fax: 1-916-319-4400
Employers who hire employees in more than one state may elect to electronically report all newly hired employees to
one state in which they have employees. Multistate employers who choose to file in one state must notify the Office
of Child Support Enforcement
(acf.hhs.gov/programs/css/resource/ocse-multistate-employer-registration-contacts).
You can file online using e-Services for Business (edd.ca.gov/e-Services_for_Business). It’s fast, easy, and
secure. IF YOU FILE ELECTRONICALLY, DO NOT FILE A PAPER DE 34. For additional information on new
employee electronic filing, refer to the Electronic Filing Guide for the New Employee Registry Program (DE 340)
(edd.ca.gov/pdf_pub_ctr/de340.pdf) or the NER FAQs
(edd.ca.gov/payroll_taxes/faq_-_california_new_employee_registry.htm), or contact the Taxpayer Assistance Center
at 1-888-745-3886.
030420
M M D D Y Y 00000000 xxxxxxxxx
E MILLER
SOCIAL SECURITY NUMBER STREET NUMBER STREET NAME UNIT/APT
M M D D Y Y
M M D D Y Y
M M D D Y Y
M M D D Y Y
M M D D Y Y
DE 34 Rev. 10 (3-17) (INTERNET) Page 1 of 2 MAIL TO: Employment Development Department / PO Box 997016, MIC 96 CU
West Sacramento, CA 95799-7016 or fax to 916-319-4400
• Federal employer identification number • First name, middle initial, and last name (do not
• EDD eight-digit employer payroll tax account use company name)
number (if applicable) • Social Security number (do not use FEIN)
• Social Security number (if no FEIN number or • Address
eight-digit EDD employer payroll tax account • Start date of contract
number)
• Amount of contract (including cents)
• Business or government entity name, address,
• Contract expiration date or check box if the
and phone number
contract is ongoing
• Contact person
Refer to sample DE 542 on page 56.
Filing an Informal Report
If you are not able to obtain a DE 542 by the due date, you may file an informal report to avoid penalty and interest
charges. Your informal report must include all the information listed in the table above.
Mail or fax your independent contractor information to:
Employment Development Department
Document Management Group, MIC 96
PO Box 997350
Sacramento, CA 95899-7350
Fax: 1-916-319-4410
If you are reporting a large number of independent contractors, we encourage you to send the information
electronically. You can file online using e-Services for Business (edd.ca.gov/e-Services_for_Business). IF YOU FILE
ELECTRONICALLY, DO NOT FILE A PAPER DE 542. For additional information on ICR electronic filing, refer to
the Electronic Filing Guide for the Independent Contractor Reporting Program (DE 542M)
(edd.ca.gov/pdf_pub_ctr/de542m.pdf), the ICR FAQs (edd.ca.gov/pdf_pub_ctr/de542faq.pdf), and ICR reporting
(edd.ca.gov/payroll_taxes/faq_-_california_independent_contractor_reporting.htm), or by contacting the Taxpayer
Assistance Center at 1-888-745-3886.
REPORT OF
INDEPENDENT CONTRACTOR(S)
See detailed instructions on reverse side. Please type or print.
05420101
123 555-7899
HENRY A KENNEDY
SOCIAL SECURITY NUMBER STREET NUMBER STREET NAME UNIT/APT
ANYCITY CA 12345
START DATE OF CONTRACT AMOUNT OF CONTRACT CONTRACT EXPIRATION DATE CHECK HERE IF CONTRACT IS ONGOING
START DATE OF CONTRACT AMOUNT OF CONTRACT CONTRACT EXPIRATION DATE CHECK HERE IF CONTRACT IS ONGOING
, , .
M M D D Y Y M M D D Y Y
START DATE OF CONTRACT AMOUNT OF CONTRACT CONTRACT EXPIRATION DATE CHECK HERE IF CONTRACT IS ONGOING
, , .
M M D D Y Y M M D D Y Y
MAIL TO: Employment Development Department • PO Box 997350, MIC 96 • Sacramento, CA 95899-7350
or Fax to 916-319-4410
When Due:
• If you do not withhold PIT or if accumulated PIT withholdings are less than $350, taxes (UI, ETT, SDI, and
PIT) are due each quarter on January 1, April 1, July 1, and October 1.
• If PIT withholdings are $350 or more, SDI and PIT may need to be deposited more often. Refer to page 6
for the California Deposit Requirements table.
NOTE: A penalty of 15 percent plus interest will be charged on late payroll tax payments.
Your UI, ETT, and SDI tax rates are available on e-Services for Business.
For additional assistance, contact the Taxpayer Assistance Center at 1-888-745-3886. If outside of the U.S. or
Canada, call 1-916-464-3502.
Visit Quarterly Contribution and Wage Adjustment Form (DE 9ADJ) (edd.ca.gov/pdf_pub_ctr/de9adj.pdf) or page
66 for additional information and samples.
NOTE: For reporting purposes, wages are taxable when paid, when constructively paid, or when an employee
receives payment other than cash.
You must file a DE 9 each quarter even if you paid no wages during the quarter. Penalty and interest will be
charged on late reports. If the due date falls on a Saturday, Sunday, or legal holiday, the due date is extended to the
next business day.
IMPORTANT: All employers must electronically submit employment tax returns, wage reports, and payroll tax
deposits to the EDD. Refer to page 49 for additional information on the e-file and e-pay mandate and
related noncompliance penalties.
Quarter-End Payment Due: If your DE 9 shows payroll taxes due, submit a Payroll Tax Deposit (DE 88) payment and
include the correct payment quarter.
NOTE: •
California law requires employers to report all UI/SDI subject California wages paid and California PIT
withheld during the quarter.
• A penalty of 15 percent plus interest will be charged for underpayment of contributions and California
PIT withheld pursuant to section 1112(a) of the California Unemployment Insurance Code.
If you made an error on a Quarterly Contribution Return and Report of Wages (DE 9), you can make a correction
as follows:
Online:
Log in to e-Services for Business (edd.ca.gov/e-Services_for_Business) and access the previously filed DE
9 you want to correct. For step-by-step instructions, access the e-Services for Business User Guide (DE 160)
and tutorials.
Paper:
Complete and mail the Quarterly Contribution and Wage Adjustment Form (DE 9ADJ). Refer to page 65 for
additional information and a sample form.
NOTE: For reporting purposes, wages are taxable when paid, when constructively paid, or when an employee
receives payment other than cash. If wages are still unpaid at the time the DE 9C is due, wages due to
an employee that were not paid within the time required by law should be reported by filing the Quarterly
Contribution and Wage Adjustment Form (DE 9ADJ) online through e-Services for Business with “Wages
Legally Due but Unpaid” noted as the reason for adjustment. This will ensure that an employee receives
proper wage credit for the quarter when the wages should have been paid. However, the employment taxes
due on these wages should be paid when the wages are actually or constructively paid for the employee.
You must electronically file a DE 9C each quarter even if you paid no wages during the quarter. Penalty and
interest will be charged on late reports. If the due date falls on a Saturday, Sunday, or legal holiday, the due date
is extended to the next business day. If you no longer have employees or you are no longer in business, refer to
page 71 for filing instructions.
For assistance completing your DE 9C, contact the Taxpayer Assistance Center at 1-888-745-3886. If outside the U.S.
or Canada, call 1-916-464-3502 or you can also file online with e-Services for Business
(edd.ca.gov/e-Services_for_Business).
Online:
Log in to e-Services for Business (edd.ca.gov/e-Services_for_Business) and access the previously filed DE 9
you want to correct. For step-by-step instructions, access the e-Services for Business User Guide (DE 160) and
tutorials.
Paper:
Complete and mail the DE 9ADJ. Refer to pages 67 and 68 for additional information and a sample form.
Reason for
Form How to Make an Adjustment
Adjustment
Correcting previously Provided incorrect File a DE 9ADJ. Complete Sections I and II with the correct
filed Quarterly UI, ETT, SDI, and/ information. If DE 9C forms were filed incorrectly, also complete
Contribution Return or PIT information. Section III of the DE 9ADJ.
and Report of Wages
(DE 9) NOTE: If taxes are due, send a payment for the tax amount plus
penalty and interest, if any, with the DE 9ADJ.
Correcting previously Incorrect employee File a DE 9ADJ. Complete Sections I and III. Section III requires two
filed Quarterly Social Security entries. For the first entry, enter the quarter, incorrect SSN, employee
Contribution Return number (SSN) or name, and enter zeros in total subject wages, PIT wages, and PIT
and Report of Wages name reported. withheld fields. For the second entry, enter the corrected information.
(Continuation) (DE 9C) For examples, refer to page 2 of the Instructions for Completing the
Quarterly Contribution and Wage Adjustment Form (DE 9ADJ-I)
Instructions.
Incorrect wages File a DE 9ADJ. Complete Sections I and III with correct wages and/
and/or PIT or PIT information for each employee by quarter. For examples, refer
information to page 2 of the DE 9ADJ-I Instructions.
for employees
previously NOTE: If DE 9 has been filed with incorrect information, also
reported. complete Section II.
No SSN reported File a DE 9ADJ. Complete Sections I and III. Section III requires
for employee. two entries. For the first entry, enter the quarter, all zeros for the
SSN filed, employee name, and zeros in subject wages, PIT wages,
and PIT withheld fields. In the second entry, enter the corrected
information. For examples, refer to page 2 of the DE 9ADJ-I
Instructions.
Employee(s) File a DE 9ADJ. Complete Sections I and III with unreported
not previously employee(s) SSN and full name, total subject wages, PIT wages,
reported. and PIT withheld by quarter.
Detailed DE 9ADJ instructions are provided on the DE 9ADJ-I (edd.ca.gov/pdf_pub_ctr/de9adji.pdf) or contact the
Taxpayer Assistance Center at 1-888-745-3886 for additional assistance.
You can file this adjustment form online through the Employment Development Department’s (EDD) e-Services for Business.
Please visit our website at www.edd.ca.gov. See Instructions for Completing the Quarterly Contribution and Wage
Adjustment Form (DE 9ADJ-I) for completing this form.
BOX 1. STATE DISABILITY INSURANCE OVERPAYMENTS (Must be completed for credit to be allowed.)
1. Was the credit claimed in column 3 withheld from the wages of employee(s)?............................................................... ✔ Yes No
If yes, has this amount been refunded to employee(s)? ................................................................................................. ✔ Yes No
If not refunded: employee(s) no longer employed, unable to locate.
NOTE: The EDD cannot refund these contributions to you unless you first refund the erroneous deductions to the employee(s).
(List each employee name, Social Security Number, and amount of SDI not refunded.)
BOX 2. PERSONAL INCOME TAX OVERPAYMENTS (Must be completed for credit to be allowed.)
If you paid the Employment Development Department (EDD) more than the amount of California PIT withheld from wages of employee(s),
you can adjust the amount reported by using this form. The EDD will allow credit adjustments prior to the issuance of Forms W-2. If you
have already issued Forms W-2, please read the additional information on page 2 before proceeding.
1. Was the credit claimed in column 3 withheld from the pay of employee(s)? ................................................................... ✔ Yes No
If yes, has this credit been refunded to employee(s)? .................................................................................................... ✔ Yes No
2. Was the credit claimed in column 3 included on Forms W-2 issued to employee(s)? Yes ✔ No
Be sure to sign this declaration: I declare that the information herein is true and correct to the best of my knowledge and belief.
SIGN AND MAIL TO: Employment Development Department / P.O. Box 989073 / West Sacramento, CA 95798-9073
YEAR / QUARTER SOCIAL SECURITY NUMBER EMPLOYEE NAME (FIRST, MIDDLE INITIAL, LAST)
YEAR / QUARTER SOCIAL SECURITY NUMBER EMPLOYEE NAME (FIRST, MIDDLE INITIAL, LAST)
YEAR / QUARTER SOCIAL SECURITY NUMBER EMPLOYEE NAME (FIRST, MIDDLE INITIAL, LAST)
YEAR / QUARTER SOCIAL SECURITY NUMBER EMPLOYEE NAME (FIRST, MIDDLE INITIAL, LAST)
YEAR / QUARTER SOCIAL SECURITY NUMBER EMPLOYEE NAME (FIRST, MIDDLE INITIAL, LAST)
YEAR / QUARTER SOCIAL SECURITY NUMBER EMPLOYEE NAME (FIRST, MIDDLE INITIAL, LAST)
YEAR / QUARTER SOCIAL SECURITY NUMBER EMPLOYEE NAME (FIRST, MIDDLE INITIAL, LAST)
YEAR / QUARTER SOCIAL SECURITY NUMBER EMPLOYEE NAME (FIRST, MIDDLE INITIAL, LAST)
YEAR / QUARTER SOCIAL SECURITY NUMBER EMPLOYEE NAME (FIRST, MIDDLE INITIAL, LAST)
YEAR / QUARTER SOCIAL SECURITY NUMBER EMPLOYEE NAME (FIRST, MIDDLE INITIAL, LAST)
FORM W-2
Box Enter
Box 16 (State wages, tips, etc.) California PIT wages
Box 17 (State income tax) California PIT withheld
Box 19 (Local income tax) The abbreviation “CASDI” and SDI withheld
(For additional information, refer to “NOTE” below.)
NOTE: If Box 19 has local taxes, use “Box 14-Other.” If no boxes are available, you are required to provide your
employees with a separate written statement containing:
• Your business or entity name, address, federal employer identification number, and the Employment
Development Department (EDD) eight-digit employer payroll tax account number.
• The employee’s name, address, state, and Social Security number.
• The amount of SDI tax actually withheld and/or paid directly by you under the state plan.
• If the wages were not subject to SDI, show “CASDI 0” (zero).
• If you pay SDI taxes without withholding SDI from the employee’s wages, you should show the SDI taxes
as if withheld and increase the amount you report according to the formula as shown on Information Sheet:
Social Security/Medicare/State Disability Insurance/Federal Income Taxes Paid by an Employer (DE 231Q).
Download the DE 231Q (edd.ca.gov/pdf_pub_ctr/de231q.pdf) or contact the Taxpayer Assistance Center at
1-888‑745‑3886.
• If you are covered under an authorized Voluntary Plan Disability Insurance (VPDI), enter “VPDI” and the
VPDI amount actually withheld.
Generally, the amount reported as California PIT wages on Form W-2 (Box 16, state wages) is the same as the
federal wages (Box 1). However, the amounts may differ based on:
• Federal and California differences in definition of:
○ Employee (refer to Information Sheet: Types of Employment [DE 231TE]).
○ Taxable wages (refer to Information Sheet: Types of Payments [DE 231TP]).
• The DE 231TE and DE 231TP are available on Forms and Publications (edd.ca.gov/payroll_taxes/
forms_and_publications.htm) or contact the Taxpayer Assistance Center at 1-888-745-3886.
• Residency of the employee (refer to page 16).
• If the employee performs services in more than one state.
For additional information on federal and California differences, please contact the Taxpayer Assistance Center at
1-888-745-3886. If the employee performs services in more than one state, contact the other state(s) for guidance on
how to complete the Form W-2 for that state.
If you discover an error on a previously issued Form W-2, refer to the IRS publication General Instructions for Forms
W-2C and W-3C for guidance on completing an IRS Corrected Wage and Tax Statement (Form W-2C). To obtain
these forms, visit the IRS (irs.gov) or call 1-800-829-3676.
*Employers failing to provide a Form W-2 to each employee, or who furnish a false or fraudulent statement, are subject to a
penalty of fifty dollars ($50) for each such failure as imposed pursuant to section 13052 of the California Unemployment
Insurance Code (CUIC). Employers may also be subject to an additional penalty for failure to file informational returns (Form
W-2 or a Form 1099-MISC) to misclassified employees as provided pursuant to section 13052.5 of the CUIC. The amount of the
penalty is determined based upon the unreported payments for personal services multiplied by the maximum rate as provided
pursuant to section 17041 of the Revenue and Taxation Code. Contact the EDD Taxpayer Assistance Center at 1-888-745-3886
for assistance.
How to File
The FTB recommends that you file under the IRS Combined Federal/State Filing program. When you are approved
and use the IRS Combined Federal/State Filing program, you only have to file once. The IRS will forward your
California returns to the FTB. The following forms may be filed under this program: Forms 1099-DIV, 1099-G,
1099-INT, 1099-MISC, 1099-OID, 1099-PATR, 1099-R, and 5498. For information on the IRS Combined Federal/
State Filing program, call 1-866-455-7438.
If you are not participating in the Combined Federal/State Filing program and file 250 or more information returns of
one type, you must file directly with the FTB electronically. If you file less than 250 returns electronically or on paper
with the IRS, you should use the same method to file with FTB.
If you file paper information returns with the IRS, do not send a paper copy to the FTB. The IRS will forward the
information to the FTB. This applies to paper filing only.
Generally, the FTB’s reporting requirements are the same as the IRS reporting requirements. For specific differences,
visit the FTB (ftb.ca.gov/businesses/infortrns/how_to_file.shtml).
NOTE: California PIT withheld from pension, annuity, and other deferred income should be reported on the IRS form
Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
(Form 1099-R). For instructions on completing Form 1099-R, refer to IRS Instructions for Forms 1099-R and
5498. To obtain instructions, access the IRS (irs.gov) or call the IRS at 1-800‑829‑3676.
*Failure to provide an Information Return (Form 1099), if required, to each independent contractor may be subject to a penalty
as imposed pursuant to section 13052.5 of the California Unemployment Insurance Code or section 19175 of the Revenue and
Taxation Code (RTC). The amount of the penalty is determined based upon the unreported payments for personal services
multiplied by the maximum rate as provided pursuant to section 17041 of the RTC. Contact the EDD Taxpayer Assistance Center
at 1-888-745-3886 for assistance.
NOTE: As of January 1, 2018, all employers are required to notify all of their employees of the federal Earned
Income Tax Credit. Refer to page 74 for details.
ACTION REQUIRED:
Notify the EDD of any change to your business status through e-Services for Business
(edd.ca.gov/e-Services_for_Business).
Please allow three business days for processing, then log back into e-Services for Business to check the status of
your request.
If you do not have a username/password, you must first complete the Employer Services Online enrollment process.
Note: If you are an agent, you must first add access to the employer payroll tax account.
Purchase a Business
If you purchase a business with employees (or a business that previously had employees), you may be held liable for
the previous owner’s EDD liability if a Certificate of Release of Buyer (DE 2220) is not obtained. To request a DE 2220,
contact the Taxpayer Assistance Center at 1-888-745-3886. If outside the U.S. or Canada, call 1-916-464-3502.
Until a DE 2220 is issued, you (the buyer) must hold in escrow an amount sufficient to cover all amounts the seller
owes to the EDD, up to the purchase price of the business. The DE 2220 is issued after the seller pays all amounts
owed to the EDD. Payment must be made by cash, cashier’s check, certified check, escrow check, or money order
payable to the Employment Development Department.
For your protection, escrow funds should not be disbursed until the DE 2220 has been issued. For additional
information, download the Requirements for Obtaining Certificate of Release of Buyer (DE 2220) When a
Business Is Sold (DE 3409A) (edd.ca.gov/pdf_pub_ctr/de3409a.pdf) or contact the Taxpayer Assistance Center at
1-888-745-3886. If outside the U.S. or Canada, call 1-916-464-3502.
NOTE: If you employ any of the former owner’s workers immediately after the acquisition of the business, the wages
paid to these employees during the same calendar year are considered as having been paid by you. Therefore,
wages paid by the former owner in the current calendar year are applied to the taxable wage limits for
Unemployment Insurance tax, Employment Training Tax, and State Disability Insurance tax.
ADDITIONAL REQUIREMENTS
Posting Requirements
Once you are registered with the EDD, you will receive a notice to post in your workplace that informs your
employees of their rights under Unemployment Insurance, Disability Insurance, and Paid Family Leave. This notice
must be posted in a prominent location that is easily seen by your employees. You will receive the following notice if
you are subject to:
• UI, DI, and PFL – Notice to Employees (DE 1857A).
• UI only – Notice to Employees - Unemployment Insurance Benefits (DE 1857D).
• DI and PFL only – Notice to Employees (DE 1858).
You may wish to prepare the employee notice in duplicate and keep a copy for your files. Notices prepared by the
employer must include the information shown on the Notice to Employee as to Change in Relationship (above).
• Notice of plant closure or mass layoff.
ACTION REQUIRED: Post the DE 1857A and provide a DE 2320, DE 2511, and DE 2515 to each of
your employees. Provide the Notice to Employee as to Change in Relationship and/or Worker Adjustment
and Retraining Notification (WARN) as applicable.
No written notice is required if it is a voluntary quit, promotion or demotion, change in work assignment or
location (some changes in location require a WARN notice), or if work stopped due to a trade dispute.
Employers who are subject to, and required to provide, Unemployment Insurance to their employees must provide
EITC notification to the employee by either handing it directly to the employee or mailing it to the employee’s last
known address. Posting of this information on an employee bulletin board will not satisfy the notification requirement.
The notification shall be provided within one week before, after, or during the time the employer provides an annual
wage summary, including, but not limited to, a Form W-2 or a Form 1099-Misc, to the employee. The notice shall
include instructions on how to obtain any notices available from the IRS for this purpose, including, but not limited to,
the IRS Notice 797 or any successor notice or form, or any notice created by you as long as it contains substantially
the same language as the notice below.
“Based on your annual earnings, you may be eligible to receive the earned income tax credit from
the federal government. The earned income tax credit is a refundable federal income tax credit for
low-income working individuals and families. The earned income tax credit has no effect on certain
welfare benefits. In most cases, earned income tax credit payments will not be used to determine
eligibility for Medicaid, supplemental security income, food stamps, low-income housing, or most
temporary assistance for needy families’ payments. Even if you do not owe federal taxes, you
must file a tax return to receive the earned income tax credit. Be sure to fill out the earned income
tax credit form in the federal income tax return booklet. For information regarding your eligibility
to receive the earned income tax credit, including information on how to obtain the IRS Notice
797, or any other necessary forms and instructions, visit the IRS (irs.gov) or contact the IRS at
1-800-829-3676.”
The table below provides the general provisions of the federal and California WARN legislation.
California
Subject Federal
(Assembly Bill 2957 [2002], Koretz)
Covered Applicable only to employers with 100 or Applicable to a “covered establishment” with
Employers more full-time employees who must have 75 or more full- or part-time employees. As
been employed for at least six months of the under the federal WARN Act, employees must
12 months preceding the date of required have been employed for at least six months of
notice in order to be counted. the 12 months preceding the date of required
(29 United States Code [USC] 2101 and 20 notice in order to be counted.
Code Federal Regulations [CFR] 639.3) (California Labor Code, section 1400[a] and [h])
Plant Plant closings involving 50 or more employees Plant closure affecting any amount of
Closings during a 30-day period. Layoffs within a 30-day employees. Layoff of 50 or more employees
or Layoffs period involving 50 to 499 full-time employees within a 30-day period regardless of percent
Requiring constituting at least 33 percent of the full-time of workforce. Relocation of at least 100 miles
Notice workforce at a single site of employment. affecting any amount of employees.
Layoffs of 500 or more employees are covered [California Labor Code section 1400 (d)-(f)]
regardless of percentage of workforce.
(29 USC, et seq., 2101 and 20 CFR 639.3)
Legal Enforcement of WARN requirements through Suit may be brought in “any court of competent
Jurisdiction U.S. District Courts. The court, in its discretion, jurisdiction.” The court may award reasonable
may allow the prevailing party a reasonable attorney’s fees as part of costs to any prevailing
attorney’s fee as part of the costs. plaintiff. The California WARN law is in the
(29 USC 2101, et seq.) Labor Code, and the authority to investigate
through the examination of books and records
is delegated to the Labor Commissioner.
(California Labor Code, sections 1404 and 1406)
Employer An employer who violates the WARN provisions A possible civil penalty of $500 a day for each
Liability is liable to each employee for an amount equal day of violation. Employees may receive
to back pay and benefits for the period of the back pay to be paid at employee’s final rate
violation, up to 60 days, but no more than or three-year average rate of compensation,
one-half the number of days the employee was whichever is higher. In addition, employer is
employed by the employer. liable for cost of any medical expenses incurred
(29 USC; 2104[a]) by employees that would have been covered
under an employee benefit plan. The employer
is liable for a period of violation up to 60 days
or one-half the number of days the employee
was employed whichever period is smaller.
(California Labor Code, section 1403)
The EDD has established local Rapid Response Teams to assist employers and workers during a mass layoff or plant
closure. These teams, facilitated through the America’s Job Center of CaliforniaSM system, are a cooperative effort
between the Local Workforce Development Area (Local Area) and the EDD. These teams disseminate information on
the adult and dislocated worker services available under the Workforce Innovation and Opportunity Act and through the
EDD Workforce Services and UI programs. If the dislocation is the result of foreign competition or foreign relocation,
the dislocated worker may be eligible for assistance, income support, job search assistance/relocation, and/or training
under the Trade Adjustment Assistance (TAA) program. For information on TAA, refer to page 98. To find out more
about or request Rapid Response services, visit the Local Area listing (edd.ca.gov/jobs_and_training/local_area_
listing_by_county.htm).
For more information on WARN requirements visit WARN (edd.ca.gov/jobs_and_training/layoff_services_warn.htm).
Visit the federal WARN Act (doleta.gov/layoff/warn.cfm) for more information.
Nationally, employers with U.S. Government contracts or subcontracts who meet the criteria listed in the table
below are required to list job openings with either the state employment service system or with the National Labor
Exchange (NLx) (usnlx.com). In California, employers must register and list job openings with the state labor
exchange system known as CalJOBSSM (caljobs.ca.gov). This is required to enable EDD to comply with federal
compliance inquiries. CalJOBS does not maintain permanent records of jobs imported from the NLx or third party job
sites. Furthermore, employers are required to take affirmative action to employ and advance in employment, qualified
disabled veterans, other protected veterans, Armed Forces service medal veterans, and recently separated veterans.
They must also file an annual VETS-4212 Federal Contract Reporting with the U.S. Department of Labor to disclose
the total number of all current employees in each job category and at each hiring location. For more information, visit
the U.S. Department of Labor (dol.gov/vets/vets4212.htm).
The table below provides the general provisions of the Federal Contractor Reporting requirements.
Employers are required to keep payroll records for at least four years. If you believe that you are not a subject
employer or that your employees are exempt, state law requires that you maintain records of payments made to
people who provide services to your business for at least eight years in case of an employment tax audit. Your
records must provide a true and accurate account of all workers (employed, no longer employed, on a leave of
absence, and independent contractors) and all payments made. Records must include the following information for
each worker:
• Worker’s:
○ Full name (first name, middle initial, and last name).
○ Social Security number.
• Place of work.
• Monies paid:
○ Dates and amounts of payment.
○ Pay period covered.
• Cash or cash value of in-kind wages (such as meals, lodging, bonuses, gifts, and prizes) showing the nature
of the payment, the period that the services were performed, and the type of special payment made.
• The amounts withheld from employee wages. (NOTE: You may be required to make withholding deposits.
Refer to “Withholding Deposits” on page 58.)
If you have any questions on the records you must keep, refer to the Information Sheet: Employment Tax Audit
Process (DE 231TA) (edd.ca.gov/pdf_pub_ctr/de231ta.pdf) or by contacting the Taxpayer Assistance Center at
1-888-745-3886.
EMPLOYER RIGHTS
As an employer, you have the right to:
• Courteous and timely service from EDD employees.
• Expect that information maintained by the EDD be kept confidential and not published or made available for
public inspection. However, in certain instances, the law requires that this information be shared with other
governmental agencies. When those instances occur, the EDD closely follows the law to protect your rights to
confidentiality.
• Call upon the EDD for accurate information, assistance, and to have all your questions answered.
• Receive a clear and accurate account statement if the EDD believes you owe taxes.
• Request a filing extension for up to 60 days. The law provides that the EDD may grant a filing extension where
“good cause” is shown for a delay. (Refer to page 110 for the definition of “good cause.”)
• Request a waiver of penalty by showing “good cause” for filing a report or making a payment late.
• An impartial audit and a full explanation of our findings if your business is selected for an audit.
• Discuss the issue(s) with an EDD representative, supervisor, office manager, and the Taxpayer Advocate
Office if you disagree with an action taken by the EDD.
• Appeal certain actions to the California Unemployment Insurance Appeals Board.
The Employers’ Bill of Rights (DE 195) (edd.ca.gov/pdf_pub_ctr/de195.pdf) brochure has been developed to inform
you of your rights during the employment taxation process. For more information contact the Taxpayer Assistance
Center at 1-888-745-3886.
The Taxpayer Advocate Office is responsible for protecting the rights of taxpayers during all phases of the payroll tax
administration, assessment, and collection process, while also protecting the interests of the state.
If you are unable to resolve a payroll tax problem with an EDD representative, supervisor, and office manager, you
may contact the Taxpayer Advocate Office for assistance. This office will review the issues and facts of your case to
ensure that your rights have been protected and work to facilitate a resolution.
Phone: 1-916-653-9130
Fax: 1-916-449-2161
Email: [email protected]
OFFERS IN COMPROMISE
An Offer in Compromise (OIC) enables a qualified applicant to reduce an employment tax liability to less than full
value. To qualify for an OIC, all of the following are required:
Reimbursable Method
Public employers and nonprofit organizations described under section 501(c)(3) of the Internal Revenue Code have
the option of becoming “reimbursable” employers. Employers electing the reimbursable method (also known as the
cost-of-benefits method) are required to reimburse the UI Fund on a dollar-for-dollar basis for all benefits paid to their
former employees and charged to their account. Reimbursable employers are billed quarterly and payment is due
within 30 days of the statement date.
For public employers, financing under the reimbursable method must remain in effect for two complete calendar
years. For nonprofit employers, financing under the reimbursable method must remain in effect for five complete
calendar years. Employers who terminate their reimbursable coverage remain liable for UI benefits paid to their
former employees covered under this program for a period of three calendar years.
For a detailed explanation of the reimbursable method, refer to Information Sheet: Nonprofit and/or Public Entities
(DE 231NP) and Potential Liability for Unemployment Insurance (UI) Benefits When Electing the Reimbursable
Method of Financing Under the California Unemployment Insurance Code (CUIC) (DE 1378F). To obtain these
publications, visit Forms and Publications (edd.ca.gov/payroll_taxes/forms_and_publications.htm) or contact the
Taxpayer Assistance Center at 1-888-745-3886. For additional information, contact:
Employment Development Department
Reimbursable Accounting Group, MIC 19
PO Box 826880
Sacramento, CA 94280-0001
Phone: 1-916-653-5846
NOTE:
• When a UI reserve account transfer has been approved, the employer requesting the transfer will receive a
revised DE 2088 stating the UI tax rate.
• Employers who receive a reserve account transfer accept responsibility for the UI benefit charges for the
previous owner’s former employees. This may increase your UI tax rate in future years.
• A reserve account transfer cannot be reversed once it has been completed.
• There are time limits to qualify for a reserve account transfer. Apply for a reserve account transfer immediately
after purchasing an ongoing business.
For additional information on the UI program or assistance in reducing UI costs, refer to the booklet Managing
Unemployment Insurance Costs (DE 4527) (edd.ca.gov/pdf_pub_ctr/de4527.pdf).
Learn more about payroll taxes through our seminars and online courses
(edd.ca.gov/payroll_tax_seminars/).
UI RATE MANIPULATION
There are several types of schemes businesses use to unlawfully lower their UI contribution rates. These UI rate
manipulation schemes typically involve a business with a high UI tax rate obtaining a lower UI rate through the
creation of a new corporate entity or through the purchase of a shell business with a low UI rate. The practice of UI
rate manipulation threatens the stability of California’s UI Fund and creates an unfair advantage for those businesses
that use these schemes to lower their rates.
In 2005, California implemented a law to prevent UI rate manipulation; it requires employers who are illegally
lowering their UI rates to pay at the highest rate provided by law plus an additional 2 percent. The law also provides
for the greater of a $5,000 penalty or 10 percent of underreported contributions, penalty, or interest for anyone
knowingly advising another person or business to violate California’s UI rate and reporting laws.
This law also made changes regarding the transfer of UI reserve account balances and specified that whenever a
business transferred all or part of its business or payroll to another employer, the reserve account attributable to the
transferred business will also be transferred if they are under common ownership, management, or control. It also
provides that the transfer will be denied if the acquisition was for the purpose of obtaining a lower UI rate.
For more information, visit UI rate manipulation (edd.ca.gov/payroll_taxes/suta_dumping.htm) or contact the
Taxpayer Assistance Center at 1-888-745-3886. If outside the U.S. or Canada, call 1-916-464-3502.
BENEFIT AMOUNT
The maximum amount of UI benefits payable to a claimant during a regular benefit year is 26 times the claimant’s
weekly benefit amount or one-half of the total base period earnings, whichever is less. The benefit year is a 52-week
period starting on the effective date of a new UI claim. The base period consists of four calendar quarters of three
months each. When a base period begins and which calendar quarters are used depends on the date the claim
begins and whether the claim is for UI or for Disability Insurance (DI).
For UI, there are two types of base periods that may be used to establish a claim: the Standard Base Period (SBP)
and the Alternate Base Period (ABP). The SBP is the FIRST four of the last five completed calendar quarters prior
to the beginning date of the UI claim. If a claimant does not have sufficient wages in the SBP to establish a claim,
the EDD will consider whether the claimant qualifies to file a claim using the ABP. The ABP is the four most recently
completed calendar quarters prior to the beginning date of the claim. The ABP can ONLY be used to file a UI claim
when there are not enough wages earned in the SBP to file a monetarily valid UI claim. Refer to page 93 for more
information about the ABP.
Maximum Charged to
Current Weekly UI Benefit Amount Reserve Account for Each
Year Minimum Maximum Employee for a Regular Claim
2020 $40 $450 $11,700
2019 $40 $450 $11,700
BENEFIT QUALIFICATIONS
To be eligible for UI benefits, claimants must: A claimant may be ineligible for UI benefits if the claimant:
• Be unemployed through no fault of their own. • Was discharged for misconduct connected to his/her
• Be totally or partially unemployed and registered work, proof of misconduct rests with the employer.
for work with the EDD, as required. • Voluntarily quit without “good cause” (includes
• Accurately report on all earnings during their quitting for personal reasons, to go to school, or
weekly claim certification – even those from to move).
part-time or temporary work. • Files a UI claim during a recess period, if he/she
• Be physically able to work in their usual worked for a school employer, and had reasonable
occupation or in other work for which they are assurance of returning to work for a school employer.
reasonably qualified. • Refused suitable work without “good cause.”
• Be available for work by being ready and willing • Failed to take part in reemployment services.
to immediately accept suitable work in their usual
occupation or in an occupation for which they are
• Failed to apply for a job when referred by a public
employment office.
reasonably qualified.
• Be actively seeking work on their own behalf. • Failed to make reasonable efforts to look for work.
UI ELIGIBILITY DETERMINATION
The EDD schedules fact-finding phone interviews or sends questionnaires when there are eligibility questions
regarding a claim. Our staff will talk to the claimant, employer, and appropriate third parties as necessary to make a
decision. Based on the decision, benefits will either be paid or denied. If benefits are denied, a notice will be issued
to the claimant. If the employer responds timely to the first notice sent by the EDD and addresses the issue being
decided, a notice will also be sent to the employee.
NOTE: The maximum amount an employer can be charged on a regular claim is $11,700. Refer to “Benefit Amount”
on page 87. In addition, an employer’s reserve account may be subject to charges for benefits paid on a
Training Extension (TE) claim. Claimants who have been approved for California Training Benefits (a program
established to retain displaced workers who need new skills to return to work) may be eligible for a TE claim.
A claimant with a TE claim is eligible to receive a maximum of 52 times his/her weekly benefit amount on the
regular claim, which includes the maximum benefit award of the regular claim.
Protests to the DE 1101CZ, DE 1101ER, DE 1545, DE 1545R, or DE 1545TE should be in writing and mailed to the
address noted on the form within the protest time limits of that form. Employers and third-party administrators can elect
to electronically receive and respond to the EDD’s Notice of Unemployment Insurance Claim Filed (DE 1101CZ) using
SIDES (edd.ca.gov/SIDES). Protests may be written on the notice or included in a separate letter and should contain
the following information:
REMEMBER: If a written protest is not submitted, or submitted untimely, for the DE 1101CZ, DE 1101ER, DE 1545,
or DE 1545TE, you waive your right to protest your UI reserve account’s potential liability for benefits paid to the
claimant and your right to appeal the EDD determination.
NOTE: If you respond untimely, provide the reason you are submitting the eligibility information untimely and the
EDD will determine if you had “good cause” for not submitting your response timely. If there is a finding of
“good cause,” you will be entitled to receive a notice of determination or ruling. If it is determined that you
did not have “good cause” for the late response, a Response to Employer Communication (DE 4614) will
be issued. This form can be appealed if you disagree with the determination. Also, if you respond untimely
with eligibility information, the EDD will conduct a determination of eligibility with the claimant regardless of
whether you are entitled to a notice of determination or ruling.
Notice Purpose
DE 1080CZ: Reimbursable Employer(s):
• Notice of Determination Sent to an employer who responds timely to a DE 1101CZ or DE 1101ER,
and who submits information about quits and discharges. The notice
informs the employer whether or not the claimant was found eligible for
Unemployment Insurance (UI) benefits.
Tax-rated and Reimbursable Employers(s):
Sent to an employer who responds timely to a DE 1101CZ, DE 1101ER,
DE 1545, or DE 1545TE, or who provides eligibility information about
issues other than quits or discharges that can affect a claimant’s eligibility
for UI benefits, such as job refusals or a claimant’s unavailability for work
because of school attendance, lack of child care, etc. The notice informs
the employer whether or not the claimant was found eligible to receive UI
benefits. Refer to page 85 for a list of disqualifying events.
• Notice of Determination/Ruling Sent to a tax-rated employer who responds timely to a DE 1101CZ
or DE 1101ER with eligibility information regarding a voluntary quit or
discharge. The ruling portion of this notice informs the employer whether or
not the reserve account will be charged for UI benefits paid.
• Notice of Ruling Sent to a tax-rated employer who responds timely to a DE 1545 with
separation information. The separation must have occurred during or after
the base period of the claim. This notice informs the employer whether or
not the reserve account will be charged for UI benefits paid.
DE 1080M: Sent to the employer who previously received a DE 1080EZ stating that the
• Notice of Modification claimant was disqualified. This form informs the employer that the claimant’s
disqualification period is over. This notice does not change the original ruling
issued to the employer.
REMEMBER: Employers who finance UI coverage under one of the reimbursable financing methods receive Notices
of Determination, but do not receive Notices of Ruling because they do not have a UI reserve account.
The Notice of Potential Increased Liability for Training Extension Benefits (DE 1545TE) provides base-period
employers with a timely notice of maximum amount of potential UI benefits, including training extension benefits that
may be charged to their accounts. This form is mailed to base-period employers only when a former employee has
been approved for the California Training Benefits (CTB) program. When protesting a claimant’s eligibility for the CTB
program, employers should address the particular criteria that individuals must meet under section 1269 and 1269.1
of the CUIC.
If you do not agree with the ALJ’s decision, you may appeal to the California Unemployment Insurance Appeals
Board (CUIAB). The CUIAB reviews appeals to decisions rendered by the ALJ. Both the CUIAB and the ALJs operate
impartially and independently of the EDD.
The CUIAB provides the following publications to assist in filing an appeal and preparing for an administrative hearing:
• Appeals Procedure (DE 1433)
• Office of Appeals Tax Hearing Information Pamphlet (DE 6412TF)
For copies of these publications, write to the California Unemployment Insurance Appeals Board at the address shown
on the following page. You may also download these forms from the CUIAB website at (cuiab.ca.gov/forms.asp). If you
have any questions about filing an appeal, please contact the EDD at 1-800‑300-5616.
NOTE: An EDD Appeal Form (DE 1000M) (edd.ca.gov/pdf_pub_ctr/de1000m.pdf) is enclosed with all DE 1080s.
Employers are required by state and federal laws to respond to the DE 1296B, the DE 1296NER, and the IB 8605
benefit audits. Employers’ participation in these processes is essential to detect potential fraud and to protect
the integrity of the UI program.
Questions or comments about the benefit audit process should be sent to:
Employment Development Department
PO Box 3038, MIC 16A
Sacramento, CA 95812-3038
Phone: 1-866-401-2849
For more information visit Benefit Fraud (edd.ca.gov/unemployment/FAQ_-_Benefit_Audits.htm).
To ensure your DE 428T is received timely, please make the necessary updates to your address and/or agent
information. For your convenience, these updates can be submitted online using e-Services for Business.
NOTE: Employees participating in the Work Sharing or Partial Claims programs cannot use Tele-CertSM or the EDD
UI OnlineSM to certify for UI weekly benefits. Participants of these programs are required to continue using the
existing paper continued claim form by mail.
NOTICE OF LAYOFF
Employers with at least 100 full-time employees who plan plant closures resulting in employment loss of 50 or more
full-time employees within a 30-day period or mass layoffs of 50 to 499 full-time employees constituting at least 33%
of the full-time workforce at a single site of employment within a 30-day period or layoff of 500 or more employees
regardless of percentage of workforce, must give affected employees at least 60 days written notice. Please refer to
“Plant Closure or Mass Layoff” on page 75 for additional information.
WAGES NOTICES
In the event of a layoff or business closure involving 10 or more employees, the EDD Wages Notice Group will
investigate and post Electronic Wages Notices (EWN) for staff in the EDD offices to use. The EWNs contain wage
findings (e.g., findings on in-lieu-of-notice pay and bonuses) to ensure consistent determinations when several
employees may be affected by the same set of facts. For additional information, visit mass layoffs and wage
notices (edd.ca.gov/unemployment/mass_layoffs_and_wage_notices.htm).
EMPLOYEE BENEFITS
Eligible claimants may file for DI for each occurrence of disability or PFL benefits up to the maximum number of
weeks allowed within any 12-month period for care or bonding. The Disability Insurance Provisions (DE 2515)
brochure contains general information on DI eligibility. The Paid Family Leave (DE 2511) brochure contains general
information on PFL eligibility. The Claim for Disability Insurance (DI) Benefits (DE 2501) and Claim for Paid Family
Leave (PFL) Benefits (DE 2501F) are forms that contain additional program information and applications to apply for
benefits. Claimants can also apply through SDI Online (edd.ca.gov/disability).
California employers whose employees are subject to SDI contributions must provide new employees the DE 2515
and the DE 2511 and post the Notice to Employees (DE 1857A) poster. The California Unemployment Insurance
Code (CUIC) requires employers to provide general DI information to each employee leaving work due to a non-
occupational illness or injury, pregnancy, or childbirth. Employers are also required to provide PFL information to each
employee leaving work to care for a seriously ill family member or to bond with a new child through birth, adoption,
or foster care placement. The brochures and applications are provided to employers at no cost. Additional copies
may be ordered at EDD Forms (edd.ca.gov/Forms) or contact the Taxpayer Assistance Center at 1-888-745-3886.
CLAIM NOTICES
When a DI claim is filed, the employer(s) reported on the DI claim form will receive a Notice to Employer of Disability
Insurance Claim Filed (DE 2503). When a PFL claim is filed, the employer(s) will receive a Notice of Paid Family
Leave (PFL) Claim Filed (DE 2503F). Employers are required to complete and return the DE 2503 or DE 2503F
within two working days. The DE 2503 can also be submitted electronically using SDI Online at
(edd.ca.gov/disability).
To deter fraud, please respond immediately if you are not the employer shown on the DE 2503 or DE 2503F, or if the
claimant:
• Is not your employee.
• Has quit his/her job.
• Is receiving wages.
• Has not stopped working.
• Is known to be working for another employer.
NOTE: Your Unemployment Insurance reserve account will not be affected when your employees file DI and/or
PFL claims. Because employees pay for DI and PFL through payroll deductions, you will not be notified of
claimant eligibility for DI/PFL benefits.
SDI ONLINE
SDI Online is an electronic claim filing system available to employers, claimants, physicians/practitioners, and
voluntary plan administrators for submission of DI and PFL claim information. Employers can securely submit
employee information (e.g., wages earned, last day worked, etc.) for DI claims online. For additional information,
visit DI Claims (edd.ca.gov/disability).
edd.ca.gov Taxpayer Assistance Center 1-888-745-3886
DE 44 Rev. 46 (1-20) (INTERNET) Page 95 of 118
VOLUNTARY PLAN
California law allows an employer to apply to the EDD for approval of a Voluntary Plan (VP) for the payment of DI and
PFL benefits in place of the mandatory SDI coverage. A VP must provide all the benefits of SDI, at least one benefit
that is better than SDI, and it cannot cost employees more than SDI. To be approved for a VP, the employer must
post a security deposit with the EDD.
Once a VP is approved, the employer is no longer required to send SDI withholdings to the EDD for those employees
covered by the VP. Instead, the employer holds the VP contributions in a trust fund to pay DI or PFL benefit claims
and approved expenses. The VP employer pays a quarterly assessment to the EDD based on the taxable wages of
employees participating in the plan and other factors.
A VP must provide better coverage without additional cost to the employees. Based on claims experience, excess
funds may be used to increase benefit levels or lower contributions. Please note that any money collected for VP
purposes must be used only for the benefit of employees who contribute to the plan.
An employer considering a VP commitment should be aware that the employer takes ultimate responsibility for
the plan benefits and expenses. If the accumulated VP trust fund is inadequate to cover benefits or expenses, the
employer is responsible to cover the deficit; employer loans made to the VP may be recovered from future excess
VP trust funds. If a plan terminates and there are insufficient trust funds, the employer must assume the financial
obligation until all plan liabilities have been met.
Learn more about the VP option (edd.ca.gov/disability/vp_information), or call 1-916-653-6839 (TTY users dial the
California Relay Service 711) or write to:
Employment Development Department
Disability Insurance Branch, MIC 29 VP
Voluntary Plan Group
PO Box 826880
Sacramento, CA 94280-0001
SELF-EMPLOYED BENEFITS
Any self-employed individual who receives the major part of his or her income from the trade, business, or
occupation in which he or she is self-employed may elect coverage for themselves. Under provisions in the California
Unemployment Insurance Code (CUIC), self-employed individuals, who are employers, may elect Unemployment
Insurance (UI) and State Disability Insurance (SDI) or SDI coverage only for themselves. Self-employed individuals,
who are not employers, may only elect SDI coverage for themselves.
Self-employed individuals who elect coverage pay at a rate determined by the prior annual combined usage of all
participants.
For more information on elective coverage, refer to the Information Sheet: Elective Coverage for Employers and
Self-Employed Individuals (DE 231EC) (edd.ca.gov/pdf_pub_ctr/de231ec.pdf).
For additional information, refer to the Fact Sheet: Disability Insurance Elective Coverage Program (DIEC)
(DE 8714CC) (edd.ca.gov/pdf_pub_ctr/de8714cc.pdf), or call the Taxpayer Assistance Center at 1‑888‑745-3886.
SDI FRAUD
To provide affordable benefits to eligible workers, the SDI program has systems in place to detect and deter fraud.
Report suspected fraudulent activity to the EDD (askedd.edd.ca.gov/ReportFraud.aspx) or contact the Fraud hotline
at 1-800-229-6297.
• Retraining – Helps companies facing out-of-state competition by upgrading the job skills of current
employees.
• New-Hire Training – Trains unemployed workers eligible to receive California UI benefits or who have
exhausted UI benefits within 24 months of the start of training.
• Special Employment Training (SET) – The ETP provides limited funding for SET projects to improve
the skills and employment security of frontline workers (workers directly producing goods or services) in
occupations that pay at least the state average hourly wage. SET projects are not subject to ETP’s out-of-
state competition requirement, but are a priority for workforce training. SET funding also allows training of
frontline workers who earn below the state average, if they are in the following categories:
○ Workers in High Unemployment Areas – Provides training funds for workers in areas where the
unemployment rate is significantly higher than the state average.
○ Small Business Skills – Training for small business owners to enhance the competitive position of their
business. Owners must have at least one, but no more than nine, full-time employee(s).
○ Workers With Multiple Barriers to Employment – Training for individuals with barriers to full-
time employment, such as, but not limited to, physical disabilities, lack of work history, and limited
communication and literacy skills.
○ Seasonal Industries – Training funds for workers employed by companies in seasonal industries.
For more information, including how to apply for funds, eligible entities, training methods, reimbursement rates, and
ETP Annual Reports, visit ETP (etp.ca.gov). Interested parties may also contact one of the following ETP offices:
eWOTC
eWOTC is an online service to submit, view, and manage Work Opportunity Tax Credit Request for
Certification applications. This system significantly increases efficiency in processing new applications and decreases
the waiting period for approvals.
To take full advantage of the benefits offered by eWOTC, employers with 25 or more employees and all
agents/ consultants must complete a one-time eWOTC enrollment (edd.ca.gov/Jobs_and_Training/Work_
Opportunity_Tax_Credit.htm) to be able to submit WOTC Request for Certification applications online.
Employers with 24 employees or less, without agent/consultant representation, are also encouraged to submit new
applications online through eWOTC, but they may also mail applications to the address below. Please note that
mailed applications will take longer to process.
NOTE: The BLS 3023-NVS form can be filed electronically by using the Web ID and Password located in the
upper right-hand corner of the form. To complete the form electronically, visit the Annual Refiling Survey
(idcfars.bls.gov/).
Occupational information creates the basis of good decisions made by employers, job seekers, workforce and
economic development professionals, educators, public program planners, and policy makers. For example:
• Employers use occupational information for salary negotiations, to project future skills needs, and to keep a
competitive edge in the local community.
• Job seekers use occupational information to become better informed about the education, training, skill, and
ability requirements for specific occupations thus enabling them to make better decisions when preparing and
applying for desired jobs.
• Economic developers use wage data for business attraction and retention.
• Educators and trainers use occupational information to identify areas where vocational and educational
programs are needed and to create or modify curriculum to better prepare students to meet the needs of
employers.
It is extremely important that employers respond to a request for information from the LMID. Our ability to obtain
information from employers about the occupations found in California is essential for the development of tools used
by decision makers throughout our economy. If you have received an OES Survey, or would like more information
about this program, contact the EDD at 1-800-826-4896 or by email at [email protected].
To access occupational information, visit Labor Market information (labormarketinfo.edd.ca.gov) and under the
“LMI by Subject” section, select “Occupations” or “Wages.”
Employee Eligibility to Under federal law, employers are required U.S. Citizenship and Immigration
Work to verify that every individual (citizen, Services (uscis.gov/portal/site/uscis)
national, or alien) whom they hire has the Business Liaison
right to work in the U.S. Automated phone service:
The U.S. Citizenship and Immigration 1-800-357-2099
Services (USCIS) requires you to Request a copy of the Handbook for
complete an Employment Eligibility Employers: Guidance for Completing
Verification (Form I-9) for each person Form I-9 (M-274).
hired to verify employment eligibility.
Employer Requirements The Taxpayer Assistance Center can Taxpayer Assistance Center
answer your payroll tax questions (edd.ca.gov/payroll_taxes/contact_us_
(e.g., employee and independent about_payroll_taxes.htm)
contractor status, employer registration, Phone: 1-888-745-3886
independent contractor reporting, and
new employee reporting).
Employer Rights During Employer rights are protected by the Taxpayer Advocate Service
the Employment Tax Taxpayer Advocate Office during the (edd.ca.gov/payroll_taxes/taxpayer_
Audit and Collection employment tax audit and collection advocate.htm)
Process process. You may request assistance
from this office after first attempting Taxpayer Advocate Office, MIC 93
to resolve an issue with the EDD PO Box 826880
representative, supervisor, and office Sacramento, CA 94280-0001
manager. Toll-Free: 1-866-594-4177
Phone: 1-916-654-8957
Fax: 1-916-654-6969
Employment Provides a variety of information on EDD
Development the EDD programs and services, forms (edd.ca.gov)
Department Website and publications, and links to other
government sites.
Employment Tax Rates A Notice of Contribution Rates and EDD
Statement of UI Reserve Account Rate Management Group, MIC 4
(DE 2088) is mailed annually by PO Box 826880
December 31 to notify employers of their Sacramento, CA 94280-0001
UI, ETT, and SDI tax rates. For additional Phone: 1-916-653-7795
information, refer to page 82. (24-hour automated phone system)
Protests to the DE 2088 must be
submitted within 60 days of the “issued
date” on the notice.
Employment Training Provides employers funding to train and Employment Training Panel
Panel retain workers in targeted industries in (etp.ca.gov)
performance-based contracts. Includes Sacramento
retraining current employees, training Central Office 1-916-327-5640
new hires (unemployed individuals), and
Special Employment Training program. Regional Offices:
For additional information, refer to page North Hollywood 1-818-755-1313
97. Sacramento 1-916-327-5239
San Diego 1-619-881-1777
San Francisco Bay Area 1-650-655-6930
Claimant Information:
File for UI benefits using one of the
following methods:
• Online: UI OnlineSM is the fastest and
most convenient way to file your UI
claim. Visit UI Online (edd.ca.gov/
UI_Online) to get started.
• Phone: Call one of the phone
numbers listed above and speak
with an EDD representative 8 a.m.
to 12 noon (PT). Monday to Friday,
except on state holidays.
• Fax or Mail: When filing a new claim
through UI OnlineSM, some customers
will be instructed to fax or mail their
UI application to the EDD. If this
occurs, the Unemployment Insurance
Application (DE 1101I) will display. For
faster and more secure processing,
fax the completed form to the number
listed on the form. If you decide to mail
your UI application, use the address
on the form and allow additional time
for processing.
Unemployment A Statement of Charges to Reserve EDD
Insurance Benefit Account (DE 428T) is mailed annually Contribution Rate Group, MIC 4
Charges in September. This statement is an PO Box 826831
itemized list of UI charges to your reserve Sacramento, CA 94320-6831
account. For additional information, refer Phone: 1-916-653-7795
to page 93. (24-hour automated phone system)
Protests to the DE 428T must be
submitted within 60 days of the “issued
date” on the notice.
E-file and E-pay State law requires all employers to electronically submit employment tax returns, wage
Mandate reports, and payroll tax deposits to the EDD. Employers with 10 or more employees
became subject to this requirement beginning January 1, 2017, and all remaining
employers became subject to this requirement as of January 1, 2018.
e-Services for Online tool that allows employers to manage their employer payroll tax accounts through the
Business Internet. New employers can register for an employer payroll tax account online. Registered
employers can access account and payment information, file most returns and reports, pay
tax deposits and tax liabilities, review statements, correspondence, and email messages,
obtain tax rates, change addresses, make payment arrangements, close and/or reopen their
account. For additional information about the EDD e-Services for Business, refer to page 50.
Excluded Employment Employment specifically excluded from pursuant to the CUIC.
Experience Rating The system by which an employer’s UI contribution rate is determined each calendar
year based on previous employment experience.
Good Cause A substantial reason that provides a legal basis for an employer filing a tax report or
payment late. “Good cause” cannot exist unless there are unusual circumstances or
circumstances that could not be reasonably foreseen; for example, earthquakes or floods.
For more information, contact the Taxpayer Assistance Center at 1-888-745-3886.
Household Employment Describes employment of a household nature.
Independent Contractor An independent contractor (service-provider) is any individual who is not an employee of
the service-recipient for California purposes and who receives compensation or executes
a contract for services performed for that business or government entity in or outside of
California. Refer to page 8 for Independent Contractor determination reference material
For additional information about filing the Report of Independent Contractor(s) (DE 542),
refer to page 55.
Interstate Benefit Audit Each quarter, the EDD runs a cross-match with wages earned in other states against
California’s Unemployment Insurance Benefits paid file. When the crossmatch identifies
an overlap between the earnings reported by the out-of-state employers and weeks
the claimant was paid UI benefits, the system automatically generates the Interstate
Unemployment Insurance Benefit Payment Audit (IB 8605) that is mailed to the out-of-
state employer(s).
SIDES State Information Data Exchange System. Allows employers and third-party administrators
to electronically receive and respond to the EDD’s Notice of Unemployment Claim Filed
(DE 1101CZ).
Social Security Numbers Social Security number. All employee wage records and claim actions are filed under this
(SSN) number, rather than by name.
State Disability The SDI program provides Disability Insurance (DI) and Paid Family Leave (PFL) benefits
Insurance (SDI) to eligible workers who need time off work. DI benefits are paid to eligible California
workers who have a loss of wages when they are unable to work due to an illness or
injury, pregnancy, or childbirth. PFL benefits are paid to eligible California workers who
take time off work to bond with a new child or to care for an ill family member. The SDI
program is funded by mandatory payroll withholdings from employee wages.
Subject Employer An employer who is liable pursuant to the rules and provisions of the CUIC.
Subject Quarter The calendar quarter when an employer first meets the requirements for reporting their
payroll taxes.
Subject Wages Subject wages are used to determine UI, DI, and PFL benefits. Generally, all wages are
considered subject wages regardless of the UI and SDI taxable wage limits. Refer to
the inside front cover of this guide for current rates and taxable wage limits. For special
classes of employment and payments that may not be considered subject wages, refer
to Information Sheet: Types of Employment (DE 231TE) and Information Sheet: Types of
Payments (DE 231TP).
Successor A change in ownership or a new ownership of a business already registered with the EDD
as an employer.
Tax-Rated Employer An employer who is required to register with the EDD and pay UI taxes each year on
wages paid to each of their employees, up to the UI taxable wage limit.
Taxable Wage Limit The maximum amount of an employee’s wages that certain taxes apply to in a calendar
year. Refer to the inside front cover of this publication for taxable wage limits.
Taxable Wages Compensation paid for “covered employment” up to the taxable wage limits for the
year. Compensation includes wages and allowances such as meals, lodging, and other
payments in lieu of money for services rendered in employment.
Unemployment Benefits paid to eligible California workers who are unemployed. Recipients must meet
Insurance (UI) specific qualifications to receive benefits. UI is funded by employer payroll taxes.
UI and ETT Prepayment The UI or ETT taxes that an employer voluntarily sends to the EDD during a quarter even
though they are not due until the end of the quarter.
Voluntary Plan (VP) California law allows an employer to apply to the EDD for approval of a VP for the
payment of DI and PFL benefits in place of the mandatory SDI state plan. A VP must
provide all the benefits of SDI, at least one benefit that is better than SDI, and it
cannot cost employees more than SDI. Once a VP is approved, an employer is no
longer required to send SDI withholdings to the EDD. Instead, the employer holds the
contributions in a separate trust fund to pay the DI and PFL benefits and approved
expenses.
Wages All payments made to employees, whether paid by check, cash, or the reasonable cash
value of noncash payments, such as meals and lodging.
Work Opportunity Tax Federal tax credits for employers who hire and retain job seekers from any one of 10
Credit (WOTC) different target groups.
Worker Adjustment and Requires certain employers to give advance notice in the event of a plant closure or
Retraining Notification mass layoff.
(WARN) Act
Reminder: All employers are required to electronically submit employment tax returns, wage reports, and payroll tax
deposits to the Employment Development Department (EDD) as of January 1, 2018. Refer to page 49 for information
on the e-file and e-pay mandate and related noncompliance penalties.
The EDD provides easy access to its forms, publications, and information sheets by phone or online at (edd.ca.gov). If
you require additional assistance, contact the Taxpayer Assistance Center at 1-888-745-3886.
The California Employer’s Guide (DE 44) is no longer automatically mailed to all employers. The DE 44 is available
online. You can view or download the DE 44 (edd.ca.gov/pdf_pub_ctr/de44.pdf). Employers who wish to receive a
paper guide each year must submit their request at (eddservices.edd.ca.gov/tap/open/annualguide/_/#1). You will
receive a paper version of the guide each year until you access this link and specify you no longer want the paper
guide.
California passed Assembly Bill (AB) 1245 (chapter 222, statutes of 2015) requiring all employers to electronically
submit employment tax returns, wage reports, and payroll tax deposits to the Employment Development Department.
Learn more about payroll taxes through our seminars and online courses
(edd.ca.gov/payroll_tax_seminars/).