INSTRUCTIONS FOR COMPLETING THE TAX AND WAGE ADJUSTMENT FORM,                                                     DE 678 
TheTax andWage      Adjustment Form, DE 678, is used to make changes to theAnnual Reconciliation Statement, DE 7,Quarterly 
Wage and Withholding Report , DE 6, and Payroll Tax Deposit , DE 88, for tax years 2010 and prior. For amendments to tax year 
2011 and forward, use the Quarterly Contribution and Wage Adjustment Form , DE 9ADJ. Annual Domestic Employers who file the 
Employerof Household Worker(s) Quarterly Report of Wagesand                   Withholdings, DE 3BHW,and     the   Employerof  Household 
Worker(s) Annual Payroll Tax Return , DE 3HW, should continue to use the DE 678 for all tax years. 
If you submitted your original return(s) using e-Services for Business, you may request adjustments to the affected quarter(s) by 
logging in to your account at www.edd.ca.gov/e-Services_for_Business. 
Complete the DE 678 if you are filing a claim for refund, adjusting the subject wages or taxes, adjusting Personal Income Tax (PIT) 
wages or withholding, correcting employee(s) Social Security number(s) (SSN) or name(s), or to report employee(s) previously not 
reported to the Employment Development Department (EDD). 
Use the following chart to clarify when you should notify the EDD of adjustments and how to make them: 
      TYPE OF ADJUSTMENT                              HOW TO MAKE ADJUSTMENT                                          FORM TO USE
 Underpaid UI, ETT, SDI, and/or PIT prior   File a DE 88* and pay the amount due, including penalty         DE 88* (DO NOT USE A DE 678) 
 to filing DE 7/DE 3HW.                     and interest. Indicate the delinquent quarter on the DE 88. 
 Overpaid UI, ETT, SDI, and/or PIT on a     On the next DE 88* for the same calendar year, regardless       DE 88* (DO NOT USE A DE 678) 
 DE 88 prior to filing of the DE 7/         of quarter, reduce the amount of taxes due by the amount of 
 DE 3HW.                                    the overpayment. Do not show credits on the DE 88. 
 Allocated the wrong amounts to specific    DO NOT ADJUST. The EDD will make the necessary                  No form required. 
 funds on a DE 88.                          adjustments at the end of the year when your DE 7/DE 3HW 
                                            is filed. 
 Overpaid UI, ETT, SDI, and/or PIT on a     File one DE 678 for each tax deposit for which you are          DE 678, complete Sections I, II, III, and IV. 
 DE 88 prior to filing DE 7/DE 3HW and it   requesting a refund. NOTE: This is for a refund prior to filing 
 is not feasible to offset the overpayment  your year end DE 7/DE 3HW. 
 against your next deposit. 
 Provided incorrect UI, ETT, SDI, and/or    File a DE 678 with correct information. NOTE: If taxes are      Complete DE 678, Sections I, III, and IV, with 
 PIT information on DE 7/DE 3HW.            due, send a payment for tax amount plus penalty and             the correct information. 
                                            interest, if any, with the DE 678 
 Incorrect employee SSN or name             File a DE 678, requires two entries in Section V. For first     Complete DE 678, Sections I and V. 
 reported on the DE 6/DE 3BHW.              entry, enter the quarter, incorrect SSN, employee name, and 
                                            enter zeros in total subject wages, PIT wages, and PIT 
                                            withheld fields. In second entry, enter the corrected 
                                            information. Refer to page 2 for examples. 
 No SSN reported for employee(s) on the     File a DE 678, requires two entries, enter quarter, all zeros   Complete DE 678, Sections I and V 
 DE 6/DE 3BHW.                              for the SSN filed, employee name and zeros in the subject 
                                            wages, PIT wages, and PIT withheld fields. In the second 
                                            entry, enter the corrected information. 
 Employee(s) not previously reported on     Complete DE 678 with unreported employee(s) SSN and full        Complete DE 678, Sections I and V. If DE 7/ 
 DE 6/DE 3BHW.                              name, total subject wages, PIT wages, and PIT withheld by       DE 3HW has been filed with the incorrect 
                                            quarter.                                                        information, also complete Section III. 
 Incorrect wages and/or PIT information for Complete DE 678 with correct wages and/or PIT information       Complete DE 678, Sections I and V. 
 employees previously reported on the DE    for each employee by quarter. Information provided in           NOTE: If DE 7/DE 3HW has been filed with 
 6/DE 3BHW.                                 annual amounts will be returned unprocessed. Refer to page      incorrect information, also complete Section III. 
                                            2 for examples. 
*Mandatory electronic funds transfer (EFT) filers must remit all SDI/PIT funds by EFT to avoid noncompliance penalties.
To complete the DE 678, provide the following information: 
SECTION I: Business name, address, employer payroll tax account number, and tax year to be adjusted. Provide the reason for the 
adjustment or refund. 
SECTION II: If you are requesting a refund of overpaid taxes before the DE 7/DE 3HW has been submitted, provide the Pay Date, 
Year and Quarter, and the Amount Previously Paid on the original DE 88, electronic funds transfer, or EZPay deposit. 
SECTION III: If you are requesting a refund or adjusting the information provided on theDE                  7/DE 3HW, please provide the following 
information: 
 Item A:  If you are only adjusting the total subject wages paid during the calendar year, enter the correct amount that should have 
           been reported. 
 Items A through E: For all other adjustments, enter the amounts you should have reported on the DE 88, or the DE 7/DE 3HW. 
 Item F:  Enter the subtotal of taxes you should have reported. 
 Item G:  Enter the total taxes paid. 
 Item H:  Enter erroneous SDI Contributions (includes Paid Family Leave amount) not refunded to employee(s). 
 Item I:  Enter the total taxes due or overpaid (the difference between Item F minus Item G plus Item H). If taxes are due, enclose 
           a check for payment of contributions and penalty and interest with this form. If taxes are overpaid, a refund will be sent. 
DE 678-I Rev. 9 (8-16) (INTERNET)                                             Page 1 of 2                                                CU  

If this adjustment changes what you reported on the DE 6 or the DE 3BHW, complete Section V of the DE 678. 

SECTION IV: This information is necessary to allow State Disability Insurance (SDI) or California Personal Income Tax (PIT) credit or 
for a refund to be issued. 
 The SDI (includes Paid Family Leave amount) and PIT deductions are employee contributions. The EDD cannot refund these 
contributions to you unless you first refund the erroneous deductions to the employee(s). 
 You may claim a credit or refund of PIT overwithheld from an employee’s wages when the excess amount is credited or refunded 
to the employee during the same calendar year and the excess amount is not shown on the Wage and Tax Statement    , Form W-2, 
issued to the employee. If you paid the EDD more than the amounts withheld from an employee’s wages and you want a refund, you 
can adjust the amount reported on this form. 
NOTE: If you have issued a Form W-2, do not refund the PIT overwithholdings to the employee nor change the PIT withholding 
      amount on the Form W-2. The employee will receive a credit when the California Resident Income Tax Return     , Form 540, 
      is filed with the Franchise Tax Board. 
SECTION V: If it is necessary to add or adjust information that was previously reported on the DE 6/DE 3BHW, complete this section of 
the DE 678. 
NOTE: You may adjust more than one quarter on the form as totals per quarter are not required. 

            TYPE OF ADJUSTMENT                                               HOW TO MAKE ADJUSTMENT 
Incorrect SSN or name reported for employee(s).       For each correction (NOTE: This correction requires two entries for each employee): 
                                                      1. Enter the quarter, incorrect SSN, employee full name, and enter zeros in total
                                                      subject wages, PIT wages, and PIT withheld. 
                                                      2.  Enter the quarter, correct SSN, employee full name, total subject wages, PIT wages, 
                                                      and PIT withheld. 
NO SSN reported for employee(s).                      For each correction (NOTE: This correction requires two entries for each employee): 
                                                      1. Enter the quarter, all zeros (000-00-0000) for SSN, employee full name, and enter
                                                      zeros for total subject wages, PIT wages, and PIT withheld. 
                                                      2. Enter the quarter, SSN, employee full names, total subject wages, PIT wages, and
                                                      PIT withheld. 

EXAMPLE (Incorrect SSN or name reported for employee): 
QUARTER     SOCIAL SECURITY NUMBER           EMPLOYEE NAME (FIRST, MIDDLE, INITIAL, LAST) 
10/1                   xxx-xx-xxxx                    DON Z MITCHELL 
                                                      TOTAL SUBJECT WAGES                 PIT WAGES               PIT WITHHELD 
                                                                            0.00                    0.00                               0.00 
QUARTER     SOCIAL SECURITY NUMBER           EMPLOYEE NAME (FIRST, MIDDLE, INITIAL, LAST) 
10/1                   xxx-oo-xxxx                    DAVE Z MITCHELL 
                                                      TOTAL SUBJECT WAGES                 PIT WAGES               PIT WITHHELD 
                                                                           5700.00             5700.00                                 94.74 

            TYPE OF ADJUSTMENT                                               HOW TO MAKE ADJUSTMENT 
Employee(s) not previously reported on DE 6/DE 3BHW.  To add unreported employee(s) (NOTE: This correction only requires one entry for each 
                                                      employee): 
                                                      1. Enter the quarter, the unreported employee(s) SSN and full name, total subject
                                                      wages, PIT wages, and PIT withheld. 
Incorrect wages and/or PIT information on employee(s) For each correction (NOTE: This correction only requires one entry for each employee): 
previously reported on the DE6/DE 3BHW.               1. Enter the quarter, employee(s) SSN and full name. Enter correct total subject
                                                      wages, PIT wages, and PIT withheld. If no change to the previously reported 
                                                      information leave the field blank (do not enter zero). 

EXAMPLE (Incorrect PIT information reported): 
QUARTER     SOCIAL SECURITY NUMBER           EMPLOYEE NAME (FIRST, MIDDLE, INITIAL, LAST) 
10/1                   xxx-xx-xxxx                    SARAH J PETERSON 
                                                      TOTAL SUBJECT WAGES                 PIT WAGES               PIT WITHHELD 
                                                                                               4300.00                                 104.00 

Sign and date the form. 
For assistance in completing the DE 678 or obtaining additional information, contact the Taxpayer Assistance Center at  
888-745-3886. For TTY (non verbal) access, call 800-547-9565. 

DE 678-I Rev. 9 (8-16) (INTERNET)                                Page 2 of 2