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OFFICE OF THE TAXPAYER 
RIGHTS ADVOCATE 
The EDD’s Tax Branch has established the Offce                             AS A CALIFORNIA EMPLOYER, 
of the Taxpayer Rights Advocate. The Taxpayer 
Rights Advocate is responsible for providing a 
                                                                           YOU HAVE A RIGHT TO: 
clear, consistent focus on protecting the rights of         BILL OF RIGHTS 
the taxpayer. 

Incorporated within the Offce of the Taxpayer                              COURTEOUS AND TIMELY SERVICE 
Rights Advocate is the Taxpayer Advocate Offce,                            You are always entitled to courteous and timely service from Employment Development Department (EDD) 
which is responsible for protecting the rights                             employees. If you believe you have been treated inappropriately, you should contact the employee’s supervisor. 
of taxpayers during all phases of the payroll 
tax administration, assessment, and collection 
process, while also protecting the interests of the                        CONFIDENTIALITY 
state.                                                                     Information maintained by the EDD is confdential and cannot be published or made available for public 
                                                                           inspection. However, in certain instances, the law requires this information to be shared with other governmental 
If you are unable to resolve a payroll tax problem                         agencies. When these instances occur, the EDD closely follows the law to protect your rights. 
with an EDD representative, supervisor, and offce 
manager, you may contact the Taxpayer Advocate 
Offce for assistance.                                                      ACCURATE ADVICE AND ASSISTANCE 
                                                                           You have the right to call upon the EDD for accurate information, assistance, and to have all your questions 
The Taxpayer Advocate Offce will review the                                answered. The EDD’s policy is not to penalize employers for failure to comply with the law if it can be 
issues and facts of your case to ensure that your                          substantiated that they acted on incorrect instructions from the EDD staff. 
rights have been protected. The Taxpayer                                    Employment Tax Offces (ETO) are available to serve you when you need information or assistance. 
Advocate Offce will also work to facilitate a 
                                                                             Your local ETO is listed in the California Employer’s Guide (DE 44)(PDF) or by visiting the Offce Locator 
resolution to your problem. 
                                                                             (edd.ca.gov/Offce_Locator). You may also call the Taxpayer Assistance Center at 1-888-745-3886. 
You may reach the Taxpayer Advocate Offce at:                               Answers to most questions relating to employer reporting requirements, Unemployment Insurance and State 
Employment Development Department                                            Disability Insurance benefts, California Personal Income Tax, and various programs and services administered 
Offce of the Taxpayer Rights Advocate, MIC 93                                by the EDD are located in the California Employer’s Guide (DE 44)(PDF). This guide is updated annually and 
PO Box 826880                                                                available to all employers. Copies may be ordered online (edd.ca.gov/Forms/) or by calling 1-888-745-3886. 
Sacramento, CA 94280-0001                                                   If you are not sure if your workers are employees or independent contractors under the law, you may request 
                                                                             a copy of the EDD’s Employment Determination Guide (DE 38) (PDF) to help you make this determination. 
Toll-free: 1-866-594-4177 
                                                                             The EDD may also provide you with verbal guidance on employee or independent contractor issues and with 
Phone: 1-916-654-8957 
                                                                             general information sheets on various classes of employment. You can also request a written determination by 
Fax: 1-916-654-6969 
                                                                             using the Determination of Employment Work Status for Purposes of State of California Employment Taxes and 
                                                                             Personal Income Tax Withholding (DE 1870)(PDF). Call the Taxpayer Assistance Center at 1-888-745-3886, 
                                                                             visit your nearest ETO, or download the forms by visiting Forms and Publications (edd.ca.gov/Payroll_Taxes/ 
                                                                             Forms_and_Publications.htm). 
                                                                            Information regarding seminar dates, times, locations, and subjects is available on our Payroll Tax Seminars 
The EDD is an equal opportunity employer/program.                            (edd.ca.gov/Payroll_Tax_Seminars/) or by calling 1-888-745-3886. 
Auxiliary aids and services are available upon request to 
individuals with disabilities. Requests for services, aids, 
and/or alternate formats need to be made by calling the 
Taxpayer Assistance Center at 1-888-745-3886 (voice),                      CLEAR AND ACCURATE ACCOUNT STATEMENTS 
or TTY 1-800-547-9565.                                                     If you owe taxes, you have the right to receive a clear and accurate account statement. Any adjustments made to 
                                                                           your account will also be refected in the statement. If you have questions or believe the statement contains 
                                                                           an error, we encourage you to contact the EDD at the address or phone number provided on the statement. 
                                                            EMPLOYERS’ 
DE 195 Rev. 15 (7-19) (INTERNET) Page 1 of 2

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YOUR RIGHT TO REQUEST
AN EXTENSION TO FILE
RETURNS OR PAY TAXES  AN IMPARTIAL AUDIT
The California Unemployment Insurance Code If your business is selected for an audit, the EDD
provides that an extension may be granted for up to will attempt to schedule the audit at your convenience. TAX PAYMENT OPTIONS

60 days when GOOD CAUSE is shown for a delay. Employers have a legal obligation to voluntarily SETTLEMENTS PROGRAM
Under an extension of You have the right to an impartial audit and a full report and pay payroll taxes and withholdings
time to pay, interest must WHAT explanation of the audit fndings. when due. California Personal Income Tax and The EDD’s Settlements Program allows an
be charged at the current CONSTITUTES State Disability Insurance are “trust fund taxes” that employer and the EDD to settle a disputed liability,
annual rate and will You have the right to have someone, such as an are withheld from employees’ wages. You thereby avoiding the risks and costs associated
accrue each day from the GOOD CAUSE attorney, enrolled agent, or accountant, present with litigating the disputed employment tax matter.
original delinquent date Good Cause exists where during the audit or to represent you hold these funds “in trust” for the EDD.
the circumstances causing Call the Settlements Offce at 1-916-653-9130
to the date of payment.
the delay are clearly in your absence. INSTALLMENT AGREEMENT for more information.
beyond the control of
YOUR RIGHT the employer or where Although the California Unemployment Insurance COLLECTION ACTIVITIES
the delay is due to a Code does not provide for installment agreements,
TO REQUEST mistake or inadvertence if immediate and full payment of payroll taxes If you do not pay your payroll taxes, interest, and
A WAIVER OF under circumstances not creates a fnancial hardship, an installment penalties, the EDD may begin to collect the money
PENALTY reasonably foreseeable by YOUR RIGHT TO AN APPEAL you owe using the following collection activities:
agreement may be requested. Installment
the employer. Employers When you disagree with an action taken by the
If you are charged must establish that agreements will not be granted in cases where a Filing a Notice of State Tax Lien (DE 2181)
penalties for a late (1) they acted in good faith EDD, we encourage you to discuss the issues with commercial loan or other means are available to pay against your real or personal property.
payroll tax return or (demonstrated history an EDD representative, supervisor, and offce the liability. Contact your local ETO for information Recorded liens will be released when the tax
request that the reporting).
payment, you may of timely payment and manager. on installment plans or to request Information has been paid in full or if the lien was fled in
penalties be waived. (2) they acted in a diligent, You may also appeal certain actions to the Sheet: Installment Agreement (DE 631P)(PDF). error.
A waiver of penalty timely, and prudent manner, California Unemployment Insurance Appeals When an installment agreement is approved, it is
and (3) the circumstances Board (CUIAB). The CUIAB is a review board important to adhere to the terms of the agreement Issuing a Notice of Levy (DE 8005) to fnancial
request will not be could not have been independent of the EDD. Actions that may be and to submit all future returns and payments timely. institutions or other parties.
considered until the reasonably foreseen.
employer submits a appealed to the CUIAB are: Failure to do so will initiate immediate collection Issuing a warrant to seize and sell business
request on e-Services for Business or in writing that An assessment for payroll taxes including action without further notice.
and/or personal assets. As a matter of policy,
explains why good cause exists and the reason(s) for California Personal Income Tax and State If, during the course of an approved installment the EDD will not seize or sell the primary
the untimeliness. Billing will continue while the request
is being reviewed. To avoid accrual of interest and Disability Insurance withholdings. agreement, it is discovered that you are able to pay residence of a tax debtor.
to stop the collection process, the amount due must A denial of a request to transfer an employer’s the tax in full, the agreement may be canceled. The
be paid. If it is determined that the penalty should be agreement may also be canceled if it is discovered Issuing an Earnings Withholding Order for
waived and the penalty has already been paid, a refund Unemployment Insurance (UI) reserve account. Taxes (DE 9400). No more than 25 percent of
that pertinent fnancial information was withheld.
your gross wages may be withheld. You have the
will be issued or applied to any outstanding liability. A denial of a protest to an unfavorable In all instances of an approved installment agreement, right to protest this action if it causes a fnancial
The request must include a detailed explanation adjustment to an employer’s UI tax rate or the the EDD will fle a state tax lien. In addition, any hardship. A hearing offcer will determine if the
showing GOOD CAUSE for the delay. Penalties may factors used to compute it. refunds due to you by any other state agency will withholding order should be upheld, modifed,
be waived when good cause is shown for a delay in:
Filing and paying your Payroll Tax Deposit A denial of a protest to the amount of UI benefts automatically be applied to the unpaid tax. or released. Information concerning your right
(DE 88) or fling your Electronic Funds Transfer. charged to an employer’s reserve account. to a hearing is included in your copy of the
OFFER IN COMPROMISE withholding order.
Filing and paying your Quarterly Contribution A denial of a claim for a credit or refund. In addition to payment plans, an Offer in
Return and Report of Wages (DE 9).
Compromise (OIC) program has been established Filing of criminal charges for certain
Filing your Quarterly Contribution Return and A denial of a request to make a voluntary UI for accounts that are both inactive and out of violations of the California Unemployment
Report of Wages (Continuation) (DE 9C). contribution to reduce an employer’s UI tax rate. business. Qualifed applicants who do not have Insurance Code.
Filing and paying an adjustment on your Quarterly suffcient funds and/or assets to pay the liability
Contribution and Wage Adjustment Form When the EDD takes an action that may be
(DE 9ADJ)(PDF). appealed, you will be notifed by mail. To begin within the foreseeable future may be able to
Filing and paying your Employer of Household the appeal process, you must fle a petition. The eliminate their payroll tax liability at less than the This brochure is for general information
Worker(s) Annual Payroll Tax Return (DE 3HW). notice the EDD mails to you will explain your full value. Contact the the Offer in Compromise only and does not have the force or effect
Filing your Employer of Household Worker(s) petition rights and responsibilities. Please read all Group at 1-916-464-2739 for eligibility of law, rule, or regulation.
Quarterly Report of Wages and Withholdings the EDD notices carefully because strict time limits requirements.
(DE 3BHW). apply for fling appeals.
DE 195 Rev. 15 (7-19) (INTERNET) Page 2 of 2

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