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Explanation of the Notice of Contribution Rates and Statement of UI Reserve Account (DE 2088) for
the Period Shown on Your DE 2088

The Notice of Contribution Rates and Statement of all employers. When this calculation produces a ratio of less
UI Reserve Account (DE 2088) informs you of your than 0.6 percent, the rate the employer would have paid
Unemployment Insurance (UI) and Employment Training in Schedule F is multiplied by 1.15, rounded to the nearest
Tax (ETT) contribution rates for the period shown on tenth, as mandated by section 977.5 of the CUIC. All tax-
your DE 2088, as well as the website where the State rated employers are rated under the same schedule. A copy
Disability Insurance (SDI) rate can be found. It also of the Contribution Rate Schedule is on the last page of this
shows the items used to determine your UI rate and the explanation sheet.
balance in your UI reserve account shown on line 15 To determine your rate, find your reserve ratio (shown on
of your DE 2088. For more information on experience line 17 of the DE 2088) on the assigned UI rate schedule
rating or any further questions, refer to Information Sheet: (e.g., on Schedule F, ratio .129 would be 2.7 percent).
California System of Experience Rating (DE 231Z) (PDF) When the ratio between the UI Fund balance and the total
(edd.ca.gov/pdf_pub_ctr/de231z.pdf), visit your local wages paid by all employers is less than 0.6 percent, rates
Employment Tax Office (edd.ca.gov/Office_Locator) in Schedule F are multiplied by 1.15 (e.g., 2.7 percent
listed in the California Employer’s Guide (DE 44) (PDF) multiplied by 1.15 equals 3.1 percent).
(edd.ca.gov/pdf_pub_ctr/de44.pdf), or call the Taxpayer
Assistance Center at 1-888-745-3886 or TTY at ETT Rate - Employers whose UI reserve account balance
1-800-547-9565. is positive (zero or greater) pay an ETT of 0.1 percent.
Employers whose UI reserve account balance is negative
Issued Date (shows a minus sign before the amount) do not pay ETT
and it is shown as 0.0 percent on the notice. Exception:
This is the official mail date for the Notice of Contribution
Employers subject to section 977(c) of the CUIC.
Rates and Statement of UI Reserve Account for the period
shown on your DE 2088. Due to bulk mailing, some notices SDI Contribution Rate - Visit SDI information
are mailed prior to this date. (edd.ca.gov/tax-rated-employers).

Your Employer Payroll Tax Account Number Annual Taxable Wage Limits
This is the eight-digit number assigned to you when UI and ETT are paid on the first wages earned by each
you registered as an employer with the Employment employee per calendar year up to the annual taxable wage
Development Department (EDD). This number is assigned limit shown on your DE 2088.
to you for UI, ETT, SDI, and Personal Income Tax (PIT)
purposes, as well as for Federal Unemployment Tax Act Right to Protest
(FUTA) recertification purposes. Refer to your employer Any item on the DE 2088 may be protested except SDI and
payroll tax account number (shown as Account ID on the ETT, which are specifically set by law. To protest online, visit
DE 2088) when making inquiries about your account. the EDD e-Services for Business (edd.ca.gov/eServices).
You must provide a valid Letter ID with the associated
Contribution Rates tax rate year you are protesting, and it must be submitted
UI Contribution Rate - This is your UI contribution within 60 days of the issued date on the notice. A protest
rate for the period shown on your DE 2088. New may also be filed in writing and must be postmarked within
employers are assigned a 3.4 percent UI rate for a 60 days of the issued date on the notice. Include your
period of two to three years. This will depend on when employer payroll tax account number, the specific items
the employer meets the criteria under section 982(b) of you wish to protest, and the reason you are protesting. To
the California Unemployment Insurance Code (CUIC) request an extension of up to 60 days, it must be in writing
(leginfo.legislature.ca.gov/faces/codes). After that, an and show good cause. Mail your written protest or request
employer’s contribution rate is determined by their for an extension to:
experience rating and the condition of the UI Fund. Employment Development Department
UI Rate Schedule - Section 977 of the CUIC mandates Rate Management Group, MIC 4
which Contribution Rate Schedule is in effect. Each year, PO Box 826880
the schedule is determined by the ratio between the UI Sacramento, CA 94280-0001
Fund balance on September 30 and the total wages paid by

DE 2088C Rev. 49 (1-24) Page 1 of 4 CU

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Explanation of the UI Reserve Account by Line Item:
1. Previous Reserve Balance - Shows the ending balance 11. Benefit Overpayments Established - Shows the amount
in your UI reserve account as of the date shown on of prorated charges to your UI reserve account as a
your DE 2088. result of UI benefit overpayments established.
2. UI Contributions Paid - Shows the total of all UI 12. UI Benefits not Charged to Reserve Accounts -
contributions paid by you for the period shown on your Shows the amount that has been charged to your UI
DE 2088. reserve account because of CUIC provisions relieving
Note: The ETT paid is not considered UI contributions individual UI reserve accounts of charges under certain
and is not included in this figure. When allowed, conditions. Each year, the total of all benefit charges
voluntary UI payments are included but cannot be taken not charged to individual UI reserve accounts is
as a credit on any tax return. accumulated and prorated to all employers.
3. Interest Earned by UI Fund - Shows the amount 13. Other Expenses - Shows the amount of prorated
credited to positive UI reserve accounts for interest charges to your UI reserve account for miscellaneous
earned on the UI Fund. Employers with a negative UI expenses of the UI Fund.
reserve account balance as shown on line 15 of your 14. Total Charges - Shows the total of all the items
DE 2088, do not receive a portion of these interest subtracted from your UI reserve account from line items
earnings. 9 through 13 above.
4. Negative Balance Reduction - Shows the amount of 15. Your new UI reserve balance shown on your DE 2088:
your negative UI reserve balance canceled per section Previous Reserve Balance (line 1)
1027.5 of the CUIC. Plus, Total Credits (line 8)
5. Benefit Overpayments Collected - Shows the amount Minus, Total Charges (line 14)
credited to your UI reserve account for overpayments New Reserve Balance (line 15)
recovered from claimants who were overpaid UI 16. UI Taxable Payroll - Shows the total of all UI taxable
benefits because of error or fraud. wages reported on your Quarterly Contribution Return
6. Positive Reserve Account Balances Canceled - Shows (DE 3D), Employer of Household Worker(s) Annual
the amount credited to your UI reserve account as Payroll Tax Return (DE 3HW), or Quarterly Contribution
the result of the cancelation of positive UI reserve Return and Report of Wages (DE 9) for the years
accounts. Whenever an employer ceases to pay shown on your DE 2088 and any adjustments made
wages, the UI reserve account (unless transferred to a to the taxable wages for those years. An increase in
successor’s account) is canceled after a period of three UI taxable payroll may result in an increase to your UI
consecutive years. Each year, the total of the canceled contribution rate.
UI reserve accounts with positive balances is prorated 17. Reserve Ratio - Shows the ratio between your UI
to all employers’ accounts. reserve balance and your average base payroll.
7. Other Income - Shows your share of money deposited Reserve Account Balance = Reserve Ratio
into the UI Fund from other sources. Average Base Payroll
8. Total Credits - Shows the total of all the items added To determine your average base payroll, divide the
to your UI reserve account from line items 2 through 7 UI taxable payroll on line 16 by the number of years of
above. UI taxable payroll history within the three years shown
on your DE 2088.
9. UI Benefits Charged - Shows the amount of UI benefits
paid to your former employees for the period shown UI Taxable Payroll = Average
on your DE 2088. This amount should agree with 3, 2, or 1 (depending on Base Payroll
the amount shown on your Statement of Charges to taxable payroll history)
Reserve Account (DE 428T). These charges may also Note: If taxable wages are reported in at least one
be because of a UI reserve account transfer. For partial quarter of a year, that is considered a full year with
transfers, the successor will not receive the DE 428T. wages.
10. Increase in Negative Reserve Balances - Shows the The UI taxable wages for the time period shown at the
amount of prorated charges to your UI reserve account bottom of the DE 2088 are used to calculate the pro-
because of the increase in the total of all negative UI rated credits and charges.
reserve account balances.

DE 2088C Rev. 49 (1-24) Page 2 of 4

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Minimizing Your UI Rate Common Questions
• Work with your employees to avoid separations. Every Q. Why did my rate increase?
discharge has the potential to increase your contribution A. Your rate will increase for any one or all of the following
rate. reasons:
• When a layoff is unavoidable, contact your local EDD 1. A change in the UI rate schedule used for all UI
office for assistance in finding work for your displaced tax-rated employers. (Refer to page 1, UI Rate
workers. Schedule, for more information.)
• Respond in time to all claim notices. Failure to respond 2. A change in your taxable payroll for the three years
may cause you to lose future protest rights. shown on line 16 of your DE 2088. If there is either
• If possible, offer former employees a job when you are an increase or decrease, this will alter the ratio.
notified they are drawing UI benefits. (Refer to page 2, item 16, for more information.)
• Submit your UI payment within the required time 3. The total charges were more than the total credits.
limits, along with an accurately completed Payroll Tax (Refer to page 2, Explanation of the UI Reserve
Deposit (DE 88). Make sure that each of the funds the Account by Line Item, for more information.)
deposit represents is individually listed and that the Q. Why is my reserve account charged when none of my
funds are totaled correctly. Entering the total figure former employees drew benefits?
only on the DE 88 may cause your fund amounts
to be incorrectly allocated and your UI rate could A. To ensure the UI Fund remains solvent, all costs must
increase. be reimbursed. This is done by sharing costs and
income to the UI Fund that are not directly credited or
• Submit your Quarterly Contribution Return and Report charged to an employer’s reserve account. (Refer to
of Wages (Continuation) (DE 9C) or Employer of page 2, items 5-7 and 10-13, for more information.)
Household Worker(s) Quarterly Report of Wages and
Withholdings (DE 3BHW) at the close of each quarter. Q. How do I manage my UI costs?
A. For detailed information, refer to the Managing
Reserve Account Transfers Unemployment Insurance Costs (DE 4527) (PDF)
You may request a transfer of the predecessor’s (former (edd.ca.gov/pdf_pub_ctr/de4527.pdf).
owner’s) reserve account after acquiring another business. Q. Is my reserve account balance refundable?
You must submit an Application for Transfer of Reserve
Account (DE 4453) (PDF) (edd.ca.gov/pdf_pubctr/de4453. A. No. The UI contributions are deposited in the UI Fund
pdf). If your application is approved, your UI rate will be and used only to pay UI benefits. The reserve account
recalculated and may result in a reduction or increase in is a statistical method of measuring employment
your UI rate. experience, and it is only used to determine your UI
contribution rate. Your reserve balance may not be
• If you acquire part of another business and wish to used as a credit on your DE 9.
transfer a portion of its reserve account, you must
file an application within 90 days after the date of Q. Why does my rate increase when I hire more
acquisition. employees?
• If you acquire all of another business, you have up A. The more employees you have, the greater your risk of
to three years to file an application after the date of UI claims. Any increase in your taxable payroll without
acquisition. However, an application filed after 90 days a corresponding increase in the reserve account
may be restricted. balance can result in a higher UI tax rate. If your
average taxable payroll increases but your reserve
Not all reserve account balances are desirable. If the transfer balance does not increase proportionately, your reserve
of your predecessor’s reserve account is approved, you will ratio will decrease, causing your UI rate to increase.
be subject to all or a percentage of the predecessor’s benefit (See page 2, items 16 and 17, for more information.)
charges, which could increase your rate in future years.
Q. Can my reserve account be canceled?
Voluntary UI Contributions A. Yes. Whenever you cease to pay wages, the reserve
Voluntary Unemployment Insurance (VUI) payments are account, unless it has been transferred under sections
allowed in years when rate schedules AA to D are in effect. 1051-1061 of the CUIC, shall be canceled on the
VUI is not available when rate schedules E or F are in records of the EDD after a period of three consecutive
effect, or in calendar years in which the emergency solvency years has elapsed following the latest calendar quarter
surcharge is in effect. in which you paid wages.

DE 2088C Rev. 49 (1-24) Page 3 of 4

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                        Unemployment Insurance Contribution Rate Schedule

               Reserve Ratio
                                                           Contribution Rate Schedules 
Line Exceeds or =       Less than                            Stated as a Percent
                                  AA  A                  B   C                   D            E              F          *F+
1    Less than          -0.20     5.4 5.4                5.4 5.4              5.4             5.4            5.4        6.2
2              -0.20    -0.18     5.2 5.3                5.4 5.4              5.4             5.4            5.4        6.2
3              -0.18    -0.16     5.1 5.2                5.4 5.4              5.4             5.4            5.4        6.2
4              -0.16    -0.14     5.0 5.1                5.3 5.4              5.4             5.4            5.4        6.2
5              -0.14    -0.12     4.9 5.0                5.3 5.4              5.4             5.4            5.4        6.2
6              -0.12    -0.11     4.8 4.9                5.2 5.4              5.4             5.4            5.4        6.2
7              -0.11    -0.10     4.7 4.8                5.1 5.3              5.4             5.4            5.4        6.2
8              -0.10    -0.09     4.6 4.7                5.1 5.3              5.4             5.4            5.4        6.2
9              -0.09    -0.08     4.5 4.6                4.9 5.2              5.4             5.4            5.4        6.2
10             -0.08    -0.07     4.4 4.5                4.8 5.1              5.3             5.4            5.4        6.2
11             -0.07    -0.06     4.3 4.4                4.7 5.0              5.3             5.4            5.4        6.2
12             -0.06    -0.05     4.2 4.3                4.6 4.9              5.2             5.4            5.4        6.2
13             -0.05    -0.04     4.1 4.2                4.5 4.8              5.1             5.3            5.4        6.2
14             -0.04    -0.03     4.0 4.1                4.4 4.7              5.0             5.3            5.4        6.2
15             -0.03    -0.02     3.9 4.0                4.3 4.6              4.9             5.2            5.4        6.2
16             -0.02    -0.01     3.8 3.9                4.2 4.5              4.8             5.1            5.4        6.2
17             -0.01        0.00  3.7 3.8                4.1 4.4              4.7             5.0            5.4        6.2
18             0.00         0.01  3.4 3.6                3.9 4.2              4.5             4.8            5.1        5.9
19             0.01         0.02  3.2 3.4                3.7 4.0              4.3             4.6            4.9        5.6
20             0.02         0.03  3.0 3.2                3.5 3.8              4.1             4.4            4.7        5.4
21             0.03         0.04  2.8 3.0                3.3 3.6              3.9             4.2            4.5        5.2
22             0.04         0.05  2.6 2.8                3.1 3.4              3.7             4.0            4.3        4.9
23             0.05         0.06  2.4 2.6                2.9 3.2              3.5             3.8            4.1        4.7
24             0.06         0.07  2.2 2.4                2.7 3.0              3.3             3.6            3.9        4.5
25             0.07         0.08  2.0 2.2                2.5 2.8              3.1             3.4            3.7        4.3
26             0.08         0.09  1.8 2.0                2.3 2.6              2.9             3.2            3.5        4.0
27             0.09         0.10  1.6 1.8                2.1 2.4              2.7             3.0            3.3        3.8
28             0.10         0.11  1.4 1.6                1.9 2.2              2.5             2.8            3.1        3.6
29             0.11         0.12  1.2 1.4                1.7 2.0              2.3             2.6            2.9        3.3
30             0.12         0.13  1.0 1.2                1.5 1.8              2.1             2.4            2.7        3.1
31             0.13         0.14  0.8 1.0                1.3 1.6              1.9             2.2            2.5        2.9
32             0.14         0.15  0.7 0.9                1.1 1.4              1.7             2.0            2.3        2.6
33             0.15         0.16  0.6 0.8                1.0 1.2              1.5             1.8            2.1        2.4
34             0.16         0.17  0.5 0.7                0.9 1.1              1.3             1.6            1.9        2.2
35             0.17         0.18  0.4 0.6                0.8 1.0              1.2             1.4            1.7        2.0
36             0.18         0.19  0.3 0.5                0.7 0.9              1.1             1.3            1.5        1.7
37             0.19         0.20  0.2 0.4                0.6 0.8              1.0             1.2            1.4        1.6
38             0.20     or more   0.1 0.3                0.5 0.7              0.9             1.1            1.3        1.5

*The emergency solvency surcharge rate (1.15 times the rate the employer would have paid in Schedule F, rounded to the 
nearest tenth).

                                  e-Services for Business
     e-Services for Business provides employers and their agents with the ability to request rate information 
               online and also the ability to obtain an electronic DE 428T. To begin the enrollment process, 
                            go to e-Services for Business (edd.ca.gov/eServices).
               For assistance with e-Services for Business, call 1-855-866-2657. For state payroll tax assistance 
                        or information, call the Taxpayer Assistance Center at 1-888-745-3886.

     The EDD is an equal opportunity employer/program. Auxiliary services and services are available upon request 
     to individuals with disabilities. Requests for services, aids, and/or alternate formats need to be made by calling 
                                 1-888-745-3886 (voice) or TTY 1-800-547-9565.

DE 2088C Rev. 49 (1-24)               Page 4 of 4

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