CALIFORNIA
2023
EMPLOYER’S GUIDE
DE 44 Rev. 49 (1-23) (INTERNET) Cover + 118 pages
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CALIFORNIA
2023
EMPLOYER’S GUIDE
DE 44 Rev. 49 (1-23) (INTERNET) Cover + 118 pages
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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 e-file and e-pay mandate (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/payroll_taxes/e-Services_for_Business.
htm) 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 California’s New Hire Reporting Program (edd.ca.gov/Payroll_Taxes/New_Hire_Reporting.htm) or
refer to page 53.
Payroll 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, and Reporting: For information on how to prevent and detect fraud, visit
Help Fight Fraud (edd.ca.gov/about_edd/fraud.htm). Refer to page 83 for information about UI fraud, or
page 95 for Disability Insurance (DI) fraud.
Improper Payment of UI Benefits: When an employer is financially impacted by improper UI payments.
The problem 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.htm).
California Employer News and Updates: Find the latest tax news, annual updates, and resources to
support you and your business. Visit Employer News and Updates (edd.ca.gov/payroll_taxes/employer-
news.htm) and subscribe to receive emails about employment and payroll tax updates.
2023 Payroll Tax Rates, Taxable Wage Limits, and Maximum Benefit Amounts
Unemployment Insurance (UI)
The 2023 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/payroll_taxes/e-Services_for_Business.htm).
Employment Training Tax (ETT)
The 2023 ETT rate is 0.1 percent (.001) on the first $7,000 of each employee’s wages.
State Disability Insurance (SDI)
The 2023 SDI withholding rate is 0.9 percent (.009). The rate includes Disability Insurance (DI) and
Paid Family Leave (PFL).
The current SDI taxable wage limit and DI/PFL maximum weekly benefit amount are available
online at Quick Statistics (edd.ca.gov/en/about_edd/quick_statistics/).
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 15 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.htm).
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Gavin Newsom, Governor
California Labor and Workforce Development Agency
Dear California Employer:
The Employment Development Department (EDD) appreciates your continued
contribution to the economic well-being of this great state.
With you in mind, we have made it easier to file and pay with e-Services for Business
(edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm). Using e-Services for
Business is a fast, easy, and secure way to manage your employer payroll tax account
online at no cost to you, 24 hours a day, 7 days a week. You can file and adjust returns,
make payments, view and update your account information, and much more!
We encourage you to visit the EDD website (edd.ca.gov) for additional information
critical to employers and their employees on topics such as Unemployment and
Disability Insurance, job training, labor market information, payroll tax 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), or call the Taxpayer
Assistance Center at 1-888-745-3886.
We appreciate your commitment to doing business in California and wish you continued
success in the year ahead.
Sincerely,
NANCY FARIAS
Director
PO Box 826880 •Sacramento, CA 94280-0001 •edd.ca.gov
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| MANAGE YOUR EMPLOYER PAYROLL TAX ACCOUNT ONLINE! Use e-Services for Business to electronically: • File tax returns and wage reports • Make payments • Update addresses • And much more. Enroll today at e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm). |
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Seminars to Help Employers Succeed ................................................................................................................. 1
Introduction ............................................................................................................................................................. 2
Payroll Tax Help, Forms, and Publications .......................................................................................................... 3
Start Here ................................................................................................................................................................ 4
Flowchart ........................................................................................................................................................... 5
2023 Forms and Due Dates .................................................................................................................................... 6
About Employers and When to Register .............................................................................................................. 7
Classifying Employees .......................................................................................................................................... 8
ABC Test, Employee or Independent Contractor? ............................................................................................. 8
State Payroll Taxes ................................................................................................................................................. 9
Unemployment Insurance .................................................................................................................................. 9
Employment Training Tax ................................................................................................................................... 9
State Disability Insurance .................................................................................................................................. 9
California Personal Income Tax ......................................................................................................................... 9
State Payroll Taxes (table) ................................................................................................................................. 10
Help Us Fight Fraud ........................................................................................................................................... 10
Wages ...................................................................................................................................................................... 11
Subject Wages ................................................................................................................................................... 11
Personal Income Tax Wages ............................................................................................................................. 11
Are Subject Wages and Personal Income Tax Wages the Same? .................................................................... 11
Employers Subject to California Personal Income Tax Only .............................................................................. 11
Meals and Lodging ............................................................................................................................................. 12
Additional Information ........................................................................................................................................ 12
California Personal Income Tax Withholding ...................................................................................................... 13
How to Determine Which Wages Require Personal Income Tax Withholding ................................................... 13
Marital Status, Withholding Allowances, and Exemptions Form W-4 and DE 4 ................................................ 13
Employer’s Obligations for the Form W-4 and DE 4 .......................................................................................... 14
How to Determine Personal Income Tax Withholding Amounts ......................................................................... 15
What if Your Employee Wants Additional Personal Income Tax Withholding? ............................................ 15
How to Withhold Personal Income Tax on Supplemental Wages ...................................................................... 15
Quarterly Estimated Payments .......................................................................................................................... 15
Wages Paid to:
California Residents .................................................................................................................................... 16
Nonresidents of California ........................................................................................................................... 16
Personal Income Tax Withholding on Payments to Nonresident Independent Contractors ............................... 16
Additional Information ........................................................................................................................................ 16
California Withholding Schedules for 2023 .......................................................................................................... 17
Electronic Filing and Payment Requirements ..................................................................................................... 49
E-file and E-pay Mandate for Employers ........................................................................................................... 49
Online Services ....................................................................................................................................................... 50
e-Services for Business ..................................................................................................................................... 50
Express Pay ....................................................................................................................................................... 51
Required Forms ...................................................................................................................................................... 52
Report of New Employee(s) (DE 34): ................................................................................................................. 53
Overview ...................................................................................................................................................... 53
Sample DE 34 Form .................................................................................................................................... 54
Report of Independent Contractor(s) (DE 542):
Overview ...................................................................................................................................................... 55
edd.ca.gov i Taxpayer Assistance Center 1-888-745-3886
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| Sample DE 542 Form .................................................................................................................................. 56 Payroll Tax Deposit (DE 88): Overview ...................................................................................................................................................... 57 Withholding Deposits ................................................................................................................................... 58 California Deposit Requirements ................................................................................................................. 58 Due Dates for Quarterly Tax Deposits ......................................................................................................... 59 2023 Quarterly Payment Table .................................................................................................................... 59 Correcting Previously Submitted Payroll Tax Deposits ................................................................................ 60 Quarterly Contribution Return and Report of Wages (DE 9): Overview ...................................................................................................................................................... 62 Correcting a Previously Filed DE 9............................................................................................................... 62 Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C): Overview ...................................................................................................................................................... 63 Correcting a Previously Filed DE 9C............................................................................................................ 64 Quarterly Contribution and Wage Adjustment Form (DE 9ADJ): Overview ....................................................................................................................................................... 65 Sample DE 9ADJ Form ................................................................................................................................ 66 Federal Forms W-2 and 1099 ............................................................................................................................ 68 Change to Your Business Status .......................................................................................................................... 70 Business Name And Mailing Address Change ................................................................................................... 70 No Longer Have Employees .............................................................................................................................. 70 Close Your Business .......................................................................................................................................... 71 Reopen Your Employer Payroll Tax Account ...................................................................................................... 71 Purchase, Sell, Transfer, or Change Ownership ................................................................................................ 71 What Is a Successor Employer? ........................................................................................................................ 72 It Is Against the Law to Change/Purchase a Business Entity Solely to Obtain a Lower UI Rate ........................ 72 Additional Requirements ....................................................................................................................................... 72 Posting Requirements ........................................................................................................................................ 72 Required Notices and Pamphlets ...................................................................................................................... 72 Earned Income Tax Credit Information Act ......................................................................................................... 73 Plant Closure or Mass Layoff (WARN) ............................................................................................................... 74 U.S. Government Contractor Job Listing Requirements .................................................................................... 76 Recordkeeping ................................................................................................................................................... 77 Employers’ Bill of Rights ....................................................................................................................................... 78 Commitment ....................................................................................................................................................... 78 Employer Rights ................................................................................................................................................. 78 Office of the Taxpayer Rights Advocate ............................................................................................................. 78 Taxpayer Advocate Office ............................................................................................................................ 78 Settlements Office ....................................................................................................................................... 79 Protecting Your Privacy ...................................................................................................................................... 79 Offers in Compromise ........................................................................................................................................ 79 Unemployment Insurance Taxes ........................................................................................................................... 80 Methods of Paying for UI Benefits ..................................................................................................................... 80 How Your UI Tax Rate Is Determined ................................................................................................................. 80 Notice of Tax Rates ............................................................................................................................................ 81 Federal Unemployment Tax Act Certification ..................................................................................................... 81 Reserve Account Transfers ................................................................................................................................ 81 Wages in Another State ...................................................................................................................................... 81 Interstate Reciprocal Coverage Elections for Multistate Workers ...................................................................... 82 Tips for Reducing Your UI Tax Rate ................................................................................................................... 82 Fraud Prevention, Detection, and Reporting....................................................................................................... 83 UI Rate Manipulation .......................................................................................................................................... 83 edd.ca.gov ii Taxpayer Assistance Center 1-888-745-3886 |
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Unemployment Insurance Benefits ....................................................................................................................... 84
Unemployment Insurance Funding .................................................................................................................... 84
Benefit Amount ................................................................................................................................................... 84
Benefit Qualifications ......................................................................................................................................... 84
Qualifying UI Wages .......................................................................................................................................... 85
UI Eligibility Determination ................................................................................................................................. 85
How to Designate an Agent or Single Address ................................................................................................... 85
How to Request an Electronic DE 1545 ............................................................................................................. 85
Responding to Notices ....................................................................................................................................... 86
Subsequent Benefit Year .................................................................................................................................... 87
Notices of Determination, Ruling, or Modification ............................................................................................... 88
UI Benefits – Appeal Rights ................................................................................................................................ 89
False Statement Penalty ..................................................................................................................................... 90
Benefit Audits to Determine Fraud ...................................................................................................................... 90
Back Pay Award .................................................................................................................................................. 91
Workers’ Compensation Benefits........................................................................................................................ 91
Statement of Charges ......................................................................................................................................... 92
Alternate Base Period ......................................................................................................................................... 92
Layoff Alternatives ............................................................................................................................................... 93
Partial UI Claims........................................................................................................................................... 93
Work Sharing Program ................................................................................................................................. 93
Notice of Layoff ................................................................................................................................................... 93
Wage Notices ..................................................................................................................................................... 93
State Disability Insurance ...................................................................................................................................... 94
Taxes – Who Pays for State Disability Insurance? ............................................................................................ 94
Employee Benefits ............................................................................................................................................. 94
Employer Claim Notices ..................................................................................................................................... 94
SDI Online........................................................................................................................................................... 95
Voluntary Plan .................................................................................................................................................... 95
Self-Employed Benefits ...................................................................................................................................... 95
Workers’ Compensation Insurance .................................................................................................................... 95
SDI Fraud ........................................................................................................................................................... 95
Employment and Training Services ...................................................................................................................... 96
EDD Workforce Services ................................................................................................................................... 96
Employment Training Panel ............................................................................................................................... 96
Funding ........................................................................................................................................................ 96
How Is ETP Different? ................................................................................................................................. 96
General Information ........................................................................................................................................... 97
Trade Adjustment Assistance ............................................................................................................................. 97
Work Opportunity Tax Credit ............................................................................................................................... 98
eWOTC ............................................................................................................................................................... 98
Labor Market Information ...................................................................................................................................... 99
What Labor Market Information Is Available Online? ......................................................................................... 99
Multiple Location and/or Function Employers .................................................................................................... 99
How Your Industry Code Is Determined ............................................................................................................. 99
The Importance of Occupational Information ..................................................................................................... 100
Information and Assistance by Topic ................................................................................................................... 101
Glossary .................................................................................................................................................................. 108
Index .........................................................................................................................................................................113
Instructions for Ordering Forms and Publications ............................................................................................. 117
edd.ca.gov iii Taxpayer Assistance Center 1-888-745-3886
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SEMINARS TO HELP EMPLOYERS SUCCEED
The Employment Development Department (EDD) offers no-fee seminars to help established employers and new
employers to understand and comply with California’s payroll tax laws.
The EDD offers seminars on the following topics:
• State payroll tax reporting requirements and • Employment Status Tax Seminar.
recordkeeping. • Cannabis Industry and State Payroll Tax
• Federal/State Basic Payroll Tax Seminar. Seminar.
• State Labor Law and Payroll Tax Seminar. • AB 5 Motor Carrier Worker Classification
Online Webinar.
The EDD and the Department of Industrial Relations’
The EDD and the Internal Revenue Service (IRS)
Division of Labor Standards Enforcement jointly
jointly offer seminars on:
present classes on:
• Federal/state payroll reporting and • Wage and hour rules and regulations.
withholding requirements. • Employer and employee rights and
• Difference between employees and responsibilities.
independent contractors and the importance • Recordkeeping, reporting, and posting
of proper worker classification. requirements.
Register for a tax seminar at Payroll Tax Seminar
(edd.ca.gov/payroll_tax_seminars/).
edd.ca.gov 1 Taxpayer Assistance Center 1-888-745-3886
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INTRODUCTION
This guide helps you understand your rights and responsibilities as an employer.
How to Use This Guide
The information in this guide provides information you need to know or do as an employer, when to register, who is
an employee, and what are wages. Find the information you need in the table of contents then review the content.
Each section includes web resources for additional information.
When possible, the Employment Development Department (EDD) follows federal tax guidelines and due dates.
California laws and rates may differ from federal laws and rates. The EDD administers payroll tax reporting laws
according to the California Unemployment Insurance Code (CUIC) and California Code of Regulations (CCR).
Regardless of the size of your business, this guide is an important resource on the procedures required for compliance
with California payroll tax laws. It clarifies how the CUIC and CCR impact your business.
This guide provides general information that applies to most employers and references information on specialized
topics. Information on detailed or complex issues applicable to a small number of employers is not included.
How to Obtain Assistance and Additional Information
If you have questions not addressed in this guide and/or need additional information, visit the EDD website (edd.
ca.gov) or contact the Taxpayer Assistance Center at 1-888-745-3886.
The EDD offers seminars and presentations on California payroll tax reporting requirements to help you:
• Understand your California payroll tax reporting requirements.
• Avoid common pitfalls and costly mistakes.
• Learn the differences between employees and independent contractors.
• Understand your reporting requirements for new employees and independent contractors.
• Discover no-cost services and resources available to you.
• Develop a better understanding of the State Disability Insurance (SDI) program.
For additional information about a payroll tax education event near you, contact the Taxpayer Assistance Center at
1-888-745-3886 or register for a Payroll Tax Seminar (edd.ca.gov/payroll_tax_seminars/).
Learn more about SDI educational presentations for California workers, military family members, employers, and
licensed health professionals by visiting Outreach Events Information (edd.ca.gov/disability/events_calendar.htm) or
emailing the SDI Outreach Development Section at diboutreach@edd.ca.gov.
Other Services
This guide also contains useful information about EDD services specifically for employers including programs offering
tax credits. The EDD also provides employment services, such as job development and job search workshops,
designed to reduce unemployment and your taxes. A variety of services for new and established employers can help
you in building a more successful business while complying with California laws.
We Want to Hear From You
How can we improve this guide to better meet your needs? Please send your comments and suggestions to:
Employment Development Department
Publications and Marketing Services Group, MIC 93
PO Box 826880
Sacramento, CA 94280-0001
Email: pmsg@edd.ca.gov
Other Website of Interest
taxes.ca.gov – This website is sponsored by the California Department of Tax and Fee Administration, the
Employment Development Department, the Franchise Tax Board, and the Internal Revenue Service
(IRS).
edd.ca.gov 2 Taxpayer Assistance Center 1-888-745-3886
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PAYROLL TAX HELP, FORMS, AND PUBLICATIONS
Walk-In Offices
e-Services for Business For information and advice on your
• Fulfills the e-file and e-pay payroll tax responsibilities, visit your
mandate. local Employment Tax Office from
8 a.m. to 5 p.m., Pacific Time,
• Manage your employer payroll
Monday through Friday.
tax account online.
• Register as an employer. Anaheim ............... 2099 S. State College Blvd., #401, 92806
Audit and Collection Office Phone Number: 1-888-745-3886
• File tax returns and wage
reports. Fresno .................. 1050 O Street, 93721
Audit Office Phone Number: 1-888-745-3886
• Pay deposits and liabilities.
• Make address changes. Oakland ................ 7677 Oakport Street, Suite 400, 94621
Audit Office Phone Number: 1-888-745-3886
Collection Office Phone Number: 1-888-745-3886
Register online using e-Services for Business,
(edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm). Redding ................ 1325 Pine Street, 96001
Audit Office Phone Number: 1-888-745-3886
Sacramento .......... 3321 Power Inn Road, Suite 220, 95826
Online Audit Office Phone Number: 1-888-745-3886
Collection Office Phone Number: 1-888-745-3886
Visit the EDD website at
edd.ca.gov. San Bernardino..... 658 East Brier Drive, Suite 300, 92408
Audit Office Phone Number: 1-888-745-3886
Collection Office Phone Number: 1-888-745-3886
San Diego....... 10636 Scripps Summit Ct., Suite 202, 92131
• Frequently asked questions Audit Office Phone Number: 1-888-745-3886
(edd.ca.gov/payroll_taxes/faqs.htm).
San Jose............... 906 Ruff Drive, 95110
• Payroll Tax Seminars Audit Office Phone Number: 1-888-745-3886
(edd.ca.gov/payroll_tax_seminars/).
Santa Fe Springs.. 10330 Pioneer Blvd., Suite 150, 90670
Audit Office Phone Number: 1-888-745-3886
• Tax Professionals Collection Office Phone Number: 1-888-745-3886
(edd.ca.gov/payroll_taxes/tax_practitioners.htm).
Van Nuys…….... 6150 Van Nuys Blvd., Room 210, 91401
• Ask EDD (edd.ca.gov/about_edd/contact_edd.htm). Audit Office Phone Number: 1-888-745-3886
Visit California Tax Service Center (taxes.ca.gov) for To find an office near you, visit the Office Locator
federal and California tax information for businesses and (edd.ca.gov/Office_Locator/).
individuals.
Self-Service Offices
Tax forms and free direct-line phones are available from
8 a.m. to 5 p.m., Pacific Time, Monday through Friday at
our self-service offices.
Phone
Toll-free from the U.S. or Canada: Bakersfield ............1800 30th Street, Suite 240, 93301
1-888-745-3886 Eureka ..................409 K Street, Suite 202, 95501
Hearing impaired: 1-800-547-9565 Modesto ................3340 Tully Road, Suite E-10, 95350
Outside the U.S. or Canada: San Francisco.......745 Franklin Street, Suite 400, 94102
1-916-464-3502
Santa Rosa ...........50 D Street, Room 100, 95404
Staff are available from 8 a.m. to 5 p.m., Pacific Time, Vallejo ...................1440 Marin Street, Suite 114, 94590
Monday through Friday to answer your questions. Ventura .................4820 McGrath Street, Suite 200, 93003
Forms and Publications
Download and order forms, instructions, and publications
at EDD Forms (edd.ca.gov/forms/).
edd.ca.gov 3 Taxpayer Assistance Center 1-888-745-3886
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START HERE
As a new employer, the following steps ensure you meet your employer reporting, and tax payment
obligations. Keep in mind that your employer requirements may not be limited to informatoin on this
page. Refer to page 5, for a flowchart of these steps.
Step 1 You are an employer if you pay wages for employment to one or more people in excess of $100 during any
calendar quarter.
Note: If you pay wages to people who work in or around your home, you may be considered a household
employer. Refer topage 7 for additional information or view the Household Employer’s Guide (DE 8829)
(edd.ca.gov/pdf_pub_ctr/de8829.pdf).
Step 2 Register for an EDD employer payroll tax account number online at e-Services for Business
(edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm). You must register within 15 days after
paying wages in excess of $100 for employment. A commercial employer is a business connected
with commerce or trade, operating primarily for profit. The EDD will assign you an eight-digit employer
payroll tax account number to identify your business when reporting and paying payroll taxes. Include
your employer payroll tax account number on all correspondence with the EDD. For additional
information and registration options, refer to page 7.
Step 3 ACTION REQUIRED:
• Report new employee(s) using the online Report of New Employee(s) (DE 34) at
e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm) within 20
days of the employee’s start-of-work date. All employees who are newly hired, rehired after a
separation of at least 60 consecutive days, or returning to work from a furlough, separation, leave
of absence without pay, or termination must be reported to the EDD. If you acquire an ongoing
business and employ any of the former owner’s workers, these employees are considered new
hires, and you must report them to the EDD’s New Employee Registry (https://edd.ca.gov/en/
Payroll_Taxes/New_Hire_Reporting). For additional information and available reporting methods
for reporting new employees, refer to page 53.
• Report independent contractor information using the online Report of Independent Contractor(s)
(DE 542) at e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm)
within 20 days of either paying an independent contractor $600 or more for services performed or
entering into a contract for $600 or more, whichever is earlier. Independent contractor information
must be reported to the EDD. For additional information and available reporting methods for
independent contractor reporting, refer to page 55.
• Provide your employees with pamphlets on employee withholdings, Unemployment Insurance
(UI), Disability Insurance (DI), and Paid Family Leave (PFL). For additional information on
employee pamphlets, refer to page 72.
• Post an employee notice with UI, DI, and PFL claim and benefit information. This notice should
be posted in a prominent location, easily seen by your employees. The appropriate notice will be
sent to you after you register. For additional information on employee notices, refer to page 72.
Step 4 Make your Payroll Tax Deposits (DE 88) payments for UI, Employment Training Tax (ETT), State
Disability Insurance (SDI), and California Personal Income Tax (PIT) online at e-Services for Business
(edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm). Your SDI and PIT withholdings deposit due dates
are based on your federal deposit schedule/requirement and the amount of accumulated PIT that you have
withheld. Your UI and ETT payments are due quarterly. For additional information about deposit requirements,
refer to pages 58 and 59.
Step 5 File a Quarterly Contribution Return and Report of Wages (Continuation) (DE 9) online at e-Services
for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm) to reconcile the tax and withholding
amounts with your DE 88 deposits for the quarter. Also, file a Quarterly Contribution Return and Report of
Wages (Continuation) (DE 9C) to report total subject wages paid, PIT wages, and PIT withheld for each
employee for the quarter.
These reports are due on January 1, April 1, July 1, and October 1 of each year. These reports must be
submitted even if you have no payroll during a calendar quarter. For additional information and available
filing options, refer to pages 62 and 63.
Note: Failure to complete the above steps on time may result in penalty and interest charges.
For information on your federal employment tax reporting requirements, access the IRS website
(irs.gov) or contact the IRS at 1-800-829-4933.
edd.ca.gov 4 Taxpayer Assistance Center 1-888-745-3886
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Did you pay wages in excess of $100 NO No registration
Step 1 in a calendar quarter? required.
YES
Register online for an employer payroll tax account
number at e-Services for Business
Step 2 (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm).
Refer to page 7 for alternate registration options.
Step 3
Give to Employee(s)
Provide to the EDD within 20 days Post in Workplace
Employee’s Withholding Allowance
Certificate (DE 4)
Report of New Employee(s) (DE 34) Notice to Employees (DE 1857A)
Employee’s Withholding Certificate (Form
Report of Independent Contractor(s) W-4) (If you are a public entity or not
(DE 542) For Your Benefit: California’s Programs for subject to UI, refer to page 75
the Unemployed (DE 2320) for your posting requirements.)
Paid Family Leave (DE 2511)
Disability Insurance Provisions (DE 2515)
Continuous Filing Requirements
File required reports online at e-Services for
Business (edd.ca.gov/Payroll_Taxes/e-Services_for_
Business.htm).
Payroll Tax Deposit (DE 88)
File online at e-Services for Business
Step 4 (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.
htm).
Refer to page 57 for deposit requirements.
Quarterly Contribution Return and Report of Wages (DE 9)
Form DE 9 reconciles tax and withholding amounts with deposits for the quarter.
AND
Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C)
Step 5 Form DE 9C reports total subject wages and Personal Income Tax [PIT] wages
paid and PIT withheld for each employee for the quarter.
File online at e-Services for Business
(edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm)
Refer to pages 62 and 63 for additional information and available filing options.
Most forms are available online at EDD (edd.ca.gov) or by calling the Taxpayer Assistance Center at 1-888-745-3886.
edd.ca.gov 5 Taxpayer Assistance Center 1-888-745-3886
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2023 FORMS AND DUE DATES
Form Name Due
Commercial Employer Account Registration Within 15 calendar days after paying more
DE 1 and Update Form (If you are not a commercial than $100 in wages during any calendar
employer, refer to page 7.) quarter.
DE 34 Report of New Employee(s) Within 20 days of start-of-work date for new
or rehired employees.
Within 20 days of paying an independent
DE 542 Report of Independent Contractor(s) contractor $600 or more or entering into a
contract for $600 or more, whichever is earlier.
Delinquent if Not
Report Quarter Due 1
Filed by
DE 9/DE 9C 1st (January, February, March) April 1, 2023 May 1, 2023
DE 9/DE 9C 2nd (April, May, June) July 1, 2023 July 31, 2023
DE 9/DE 9C 3rd (July, August, September) October 1, 2023 October 31, 2023
DE 9/DE 9C 4th (October, November, December) January 1, 2024 January 31, 2024
CALIFORNIA DEPOSIT REQUIREMENTS
California “Deposit
If Your Federal And You Have
PIT and SDI Schedule” box
Deposit Schedule/ Accumulated State If Pay Date Is 2 to indicate on
Deposit Due by
Requirement Is1 PIT Withholding Of
the DE 88
Less than $350 Any payday Quarterly3 Quarterly
15 th of the
Next-Day $350 to $500 Any payday Monthly
following month
More than $500 Any payday Next-Day Next-Day
Less than $350 Any payday Quarterly3 Quarterly
15 th of the
$350 to $500 Any payday Monthly
following month
Semi-weekly
Following
More than $500 Wed., Thurs., or Fri. 7 Semi-weekly
Wednesday
More than $500 Sat., Sun., Mon., or Tues. Following Friday7 Semi-weekly
Less than $350 Any payday Quarterly3 Quarterly
Monthly 15 thof the
$350 or more Any payday Monthly
following month
May 1, 2023
July 31, 2023
Quarterly4, 5 Less than $350 Any payday Quarterly
October 31, 2023
or January 31, 2024
Annually6
15 thof 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 Personal Income Tax (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 State Disability Insurance (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 Unemployment Insurance (UI) and Employment Training Tax (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 6 Taxpayer Assistance Center 1-888-745-3886
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ABOUT EMPLOYERS
An employer is a person or legal entity that hires one or more employees 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, trusts, estates, joint ventures, and Indian Tribes.
When Do I Become An Employer?
You become an employer when you pay wages in excess of $100 during any calendar quarter to one or more
employees. 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 atHousehold Employer (edd.ca.gov/payroll_taxes/household_employer.htm). You can also refer to
the Household Employer’s Guide (DE 8829) (PDF) (edd.ca.gov/pdf_pub_ctr/de8829.pdf) online, 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 72 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 must register at e-Services for Business (edd.ca.gov/payroll_taxes/e-
Services_for_Business.htm) 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 Unemployment Insurance (UI) tax
and Employment Training Tax (ETT) on those wages, as well as withholding and remitting State Disability Insurance
(SDI) and Personal Income Tax (PIT) due on those wages.
Action Required: Register with the EDD for an employer payroll tax account number if you pay wages in excess of
$100 during any calendar quarter to one or more employees.
How to Register for an EDD Employer Payroll Tax Account Number
Register online using the EDD e-Services for Business
(edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm).
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). 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 pay wages over $100 during any calendar quarter to one or more
employees.
• 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 7 Taxpayer Assistance Center 1-888-745-3886
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CLASSIFYING EMPLOYEES
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.
ABC TEST, EMPLOYEE OR INDEPENDENT CONTRACTOR?
What Is the ABC Test?
Governor Gavin Newsom signed Assembly Bill 5 (AB 5) on September 18, 2019, codifying the ABC test for employee
versus independent contractor classification adopted by the California Supreme Court in Dynamex Operations West,
Inc. v. Superior Court of Los Angeles (Dynamex). AB 5 became law on January 1, 2020. AB 5 added section 2775 to the
Labor Code as well as amending section 621 (b) of the California Unemployment Insurance Code (CUIC) by removing the
“common law rules” and applying the ABC test.
Under amended section 621 (b) of the CUIC and section 2775 of the Labor Code, a person providing labor or services for
payment shall be considered an employee rather than an independent contractor unless the hiring entity demonstrates that
all of the following are satisfied:
(A) The person is free from the control and direction of the hiring entity in connection with the performance of the work,
both under the contract for the performance of the work and in fact.
(B) The person performs work that is outside the usual course of the hiring entity’s business.
(C) The person is customarily engaged in an independently established trade, occupation, or business of the same
nature as that involved in the work performed.
Note: California does not provide relief under the “Safe Harbor” provisions of the Internal Revenue Code. Therefore,
it is important that workers are properly classified under the ABC test which determines employer-employee
relationships.
How Can I Get Additional Information on This Topic?
Incorrectly classifying your workers can be a costly mistake. If you have incorrectly classified employees as independent
contractors, you could be liable for back taxes, penalties, and interest. The following EDD resources can help you
determine if you have correctly classified your workers:
• Employment Determination Guide (DE 38) (PDF) (edd.ca.gov/pdf_pub_ctr/de38.pdf) – Asks a series of “Yes” or
“No” questions regarding your treatment of workers to help determine if a problem may exist and whether you need
to seek additional guidance. The DE 38 is available to download online.
• Determination of Employment Work Status for Purposes of State of California Employment Taxes and Personal
Income Tax Withholding (DE 1870) (PDF) (edd.ca.gov/pdf_pub_ctr/de1870.pdf) – Provides a series of questions
regarding your relationship with your workers. Complete and return this form to the EDD for a written determination
stating whether your workers are employees or independent contractors based on the facts that you provide. The
DE 1870 is available to download online.
• Information Sheets – Provide general and industry-specific information. To obtain information sheets, visit
Forms and Publications (edd.ca.gov/payroll_taxes/forms_and_publications.htm) or contact the Taxpayer Assistance
Center at 1-888-745-3886.
• Independent Contractor Information – TheFrequently Asked Questions and Answers About the
California Independent Contractor Reporting Law (DE 542FAQ) (PDF) (edd.ca.gov/pdf_pub_ctr/de542faq.pdf)
and Independent Contractors Misconceptions Brochure (DE 573M) (PDF) (edd.ca.gov/pdf_pub_ctr/de573m.pdf)
provides detailed information and are available online to download.
• Payroll Tax Seminars – The EDD offers no-fee seminars online to help employers comply with the California
payroll tax laws. To enroll visit Payroll Tax Seminars (seminars.edd.ca.gov/Payroll_Tax_Seminars/) or contact the
Taxpayer Assistance Center at 1-888-745-3886.
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)
(PDF) (edd.ca.gov/pdf_pub_ctr/de231te.pdf) for more information.
• An employee may perform services on a temporary or less than full-time basis.
• The EDD has several resources available to help you correctly classify your workers.
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STATE PAYROLL TAXES
The Employment Development Department (EDD) administers the following California payroll tax programs:
• Unemployment Insurance Tax (UI) • State Disability Insurance Tax (SDI)
• Employment Training Tax (ETT) • California Personal Income Tax (PIT) Withholding.
Note: Paid Family Leave (PFL) 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 by law.
UNEMPLOYMENT INSURANCE TAX
What Is UI Tax?
The UI program was established as part of a national program administered by the U.S. Department of Labor under
the Social Security Act. The UI program provides temporary payments to individuals who are unemployed through no
fault of their own.
Who Pays It?
The UI program is funded through payroll taxes paid by the employer. Tax-rated employers pay a percentage on
the first $7,000 in wages paid to each employee in a calendar year. The UI rate schedule and amount of taxable
wages are determined annually. New employers pay 3.4 percent (.034) for a period of two to three years. The
UI rate could increase to a maximum of 6.2 percent (.062) or decrease to a minimum of 1.5 percent (0.015)
based on an employer’s experience rating and the balance in the UI Fund. For a detailed explanation of the
experience rating method, refer to Information Sheet: California System of Experience Rating (DE 231Z) (PDF)
(edd.ca.gov/pdf_pub_ctr/de231z.pdf).
Government entities and certain nonprofit employers may elect the reimbursable method of financing UI in which they
reimburse the UI Fund on a dollar-for-dollar basis for all benefits paid to their former employees.
EMPLOYMENT TRAINING TAX
What Is ETT?
Employment Training Tax (ETT) provides funds to train employees in targeted industries to improve the
competitiveness of California businesses. The ETT Fund promotes a healthy labor market by helping California
businesses invest in a skilled and productive workforce while developing the skills of new and incumbent workers.
Who Pays It?
ETT is an employer-paid tax. Employers are subject to pay 0.1 percent (.001) for ETT on the first $7,000 in wages
paid to each employee in a calendar year. The tax rate is set by statute at 0.1 percent (.001) of UI taxable wages for
employers with positive UI reserve account balances and subject to section 977(c) of the CUIC. The maximum tax is
$7 per employee per year ($7,000 x .001).
STATE DISABILITY INSURANCE TAX
What Is SDI Tax?
State Disability Tax (SDI) allows the Disability Fund to pay Disability Insurance (DI) and PFL benefits to eligible
California workers. DI benefits are paid to eligible California workers who lose wages when they are unable to work
due to a non-work-related illness, injury, or pregnancy.
PFL benefits are paid to eligible California workers who take time off work to care for a seriously ill child, parent,
parent-in-law, grandparent, grandchild, sibling, spouse, or registered domestic partner. Benefits are also available to
new parents who need time to bond with a new child entering the family by birth, adoption, or foster care placement.
Benefits are also available to California workers who participate in a qualifying event because of a family member’s
spouse, registered domestic partner, parent, or child’s military deployment to a foreign country.
Who Pays It?
The SDI program is funded through a payroll deduction from employees’ wages. Employers withhold 0.9 percent (.009)
for SDI on the first $153,164 in wages paid to each employee in a calendar year. Taxable wages and rates may change
each year.
CALIFORNIA PERSONAL INCOME TAX
What Is California PIT?
California Personal Income Tax (PIT) is a tax levied on California residents’ income and on income that California
nonresidents derive from California. The EDD reports, collects, and enforces PIT withholding. Taxes collected from
the Franchise Tax Board (FTB) and the EDD support California public services such as schools, public parks, roads,
health, and human services.
Who Pays It?
California PIT is either withheld from employees’ wages based on the Employee’s Withholding Allowance Certificate
(DE 4) on file with their employer or is based on the supplemental tax rates, refer to page 15.
edd.ca.gov 9 Taxpayer Assistance Center 1-888-745-3886
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STATE PAYROLL TAXES
Unemployment Employment State Disability California Personal
Insurance Training Tax Insurance Income Tax
Who Pays? Employer Employer Employee (employer Employee (employer
withholds from withholds from
employee wages) employee wages)
Taxable Wages First $7,000 of First $7,000 of First $153,164 of No limit. Refer to PIT
subject wages per subject wages per subject wages per withholding (edd.
employee, per year. employee, per year. employee, per year. ca.gov/payroll_
taxes/rates_and_
withholding.htm).
Tax Rate New employer tax rate Set by statute at The 2023 SDI Withheld based
is 3.4 percent (.034) 0.1 percent (.001) withholding rate on the Employee’s
for a period of two to of UI taxable wages is 0.9 percent (.009). Withholding
three years. Following for employers with The SDI taxable Allowance Certificate
this period, the tax positive UI reserve wages and tax rate (DE 4).
rate is calculated account balances are set by law and
annually based on and employers may change each
each employer’s subject to section year.
previous experience 977(c) of the CUIC.
and the condition of
the UI Fund. The EDD
notifies employers of
their new rate each
December.
Maximum Tax $434 per employee, $7 per employee, $1,378.48 per No maximum.
(Except when per year. (The amount per year employee, per year
employer is subject has been calculated ($7,000 x .001). ($153,164 x .011).
to section 977[c] of at the highest UI tax
the CUIC.) rate of 6.2 percent
[$7,000 x .062].)
Note: Some types of employment are not subject to payroll taxes and/or PIT withholding. Refer to
Information Sheet: Types of Employment (DE 231TE) (PDF) (edd.ca.gov/pdf_pub_ctr/de231te.pdf).
Certain types of wages and benefits are not subject to payroll taxes. Refer to Information Sheet: Types of
Payments (DE 231TP) (PDF) (edd.ca.gov/pdf_pub_ctr/de231tp.pdf). For additional assistance, contact the
Taxpayer Assistance Center at 1-888-745-3886.
HELP US FIGHT FRAUD
The “underground economy” refers to those individuals and businesses that deal in cash and/or use other schemes
to conceal their activities and their true tax liability from government licensing, regulatory, and taxing agencies. The
underground economy is also referred to as tax evasion, tax fraud, cash pay, tax gap, payments under-the-table
and off-the-books. When businesses operate in the underground economy, they gain an unfair advantage over
businesses that comply with the law because they do not pay workers’ compensation and state and federal payroll
taxes. The EDD, in partnership with several other governmental agencies, follows leads and conducts on-site
inspections of businesses throughout the state. Visit EDD Underground Economy Operations (UEO) programs (edd.
ca.gov/payroll_taxes/underground_economy_operations.htm) to learn more.
To report businesses that are paying workers undocumented cash payments, failing to carry workers’ compensation
insurance, or not complying with labor and licensing laws, please download and complete an Underground
Economy Operations Lead Referral/Complaint Form (DE 660 in English or DE 660/S in Spanish) (PDF)
(edd.ca.gov/pdf_pub_ctr/de660.pdf)/(edd.ca.gov/pdf_pub_ctr/de660s.pdf) or contact the UEO at:
Hotline: 1-800-528-1783 Email: ueo@edd.ca.gov
Fax: 1-916-227-2772 Online: askedd.edd.ca.gov/ReportFraud.aspx
• To obtain the brochure Paying Cash Wages “Under the Table” (DE 573CA in English or DE 573CA/S
in Spanish), visit Forms and Publications (edd.ca.gov/payroll_taxes/forms_and_publications.htm) or order
copies using our online order form (edd.ca.gov/forms).
• Further information about how to help the EDD fight fraud may be found in the brochure Help Us Fight Fraud
(DE 2370) (PDF) (edd.ca.gov/pdf_pub_ctr/de2370.pdf).
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WHAT ARE WAGES?
Wages are all compensation for an employee’s personal services, whether paid by check, cash, electronic debit, or
the reasonable cash value of noncash payments, such as meals and lodging. The method of payment, whether by
private agreement, consent, or mandate, does not change the taxability of wages paid to employees. Payments are
considered wages even if the employee is a casual worker, a day or contract laborer, part-time or temporary worker,
or paid by the day, hour, or any other method or measurement. Supplemental payments, including bonuses, overtime
pay, sales awards, commissions, and vacation pay are also considered wages.
SUBJECT WAGES
Generally, all wages, unless excluded under the California Unemployment Insurance Code (CUIC), are considered
subject wages and are used to determine the amount of Unemployment Insurance (UI), Employment Training Tax
(ETT), Disability Insurance (DI), and Paid Family Leave (PFL) benefits a claimant should receive. Subject wages are the
full amount of wages, regardless of the UI and State Disability Insurance (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) online at Forms and Publications (edd.ca.gov/payroll_taxes/forms_and_publications.htm) or
contact the Taxpayer Assistance Center at 1-888-745-3886.
PERSONAL INCOME TAX WAGES
Personal Income Tax (PIT) wages are cash and noncash payments subject to state income tax and must be
reported on an individual’s California income tax return. Most payments for employees’ services are reportable
as PIT wages. An employee’s PIT wage calendar year total should agree with the amount reported on the
employee’s federal Wage and Tax Statement (Form W-2) in Box 16 (state wages, tips, etc.). The PIT wages
for each employee must be reported quarterly in “Item G” on the DE 9C. For additional information, refer to
Information Sheet: Personal Income Tax Wages Reported on the Quarterly Contribution Return and Report
of Wages (Continuation) (DE 9C) (DE 231PIT) (PDF) (edd.ca.gov/pdf_pub_ctr/de231pit.pdf) 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) (PDF) (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) (PDF) (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.
EMPLOYERS SUBJECT TO CALIFORNIA PERSONAL INCOME TAX ONLY
Employers who are only required to withhold California PIT, but not the other payroll taxes, are still required to register
with the EDD using the Registration Form for Employers Depositing Only Personal Income Tax Withholding (DE 1P). The
employer is liable for the required PIT, whether or not it is withheld. By law, the filing of federal Form 1099-MISC or Form
1099-NEC (issued to the worker) with the Internal Revenue Service (IRS) or Franchise Tax Board does not relieve the
employer of liability.
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MEALS AND LODGING
Meals and lodging 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:
Value of Meals Value of Lodging
Three Meals Meal Not Minimum Maximum
Year Per Day Breakfast Lunch Dinner Identified Per Week Per Month
2023 $ 13.85 $ 2.85 $ 4.25 $ 6.75 $ 4.95 $ 57.05 $ 1,759
2022 $ 12.95 $ 2.65 $ 4.00 $ 6.30 $ 4.65 $ 55.60 $ 1,715
The values above apply to non-maritime employees only.
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) (PDF) (edd.ca.gov/pdf_pub_ctr/de3395.pdf).
ADDITIONAL INFORMATION
• Who Is an Employee? Refer to page 8.
• EDD forms and publications (edd.ca.gov/payroll_taxes/forms_and_publications.htm)
• Information Sheets:
○ Wages (DE 231A)
○ Types of Employment (DE 231TE)
○ Types of Payments (DE 231TP)
○ Personal Income Tax Wages Reported on the Quarterly Contribution Return and Report of
Wages (Continuation) (DE 9C) (DE 231 PIT)
For the latest tax news and employer resources, visit
California Employer News and Updates
(edd.ca.gov/payroll_taxes/employer-news.htm).
Subscribe to the EDD no-fee email subscription services
(edd.ca.gov/about_edd/get_email_notices.htm).
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PERSONAL INCOME TAX WAGES SUBJECT TO CALIFORNIA WITHHOLDING
With certain exceptions, compensation for services performed by an employee is considered wages and subject
to Personal Income Tax (PIT) withholding. California wages include, but are not limited to, salaries, bonuses,
commissions, fees (except fees paid to public officials), and payments in forms other than checks or cash. Wages
in any form other than checks or cash are measured by the fair market value of the goods, lodging, meals, or other
compensation given in payment for the employee’s services.
HOW TO DETERMINE WHICH WAGES REQUIRE PIT WITHHOLDING
Most wages require California PIT withholding. To determine which wages require PIT withholding, refer to
Information Sheet: Types of Employment (DE 231TE) and Information Sheet: Types of Payments (DE 231TP). These
information sheets identify special classes of employment and special types of payments and their treatment for
Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability Insurance (SDI), and California PIT
wages and withholding. Also refer to “Who Is an Employee?” on page 8.
To obtain information sheets for specific industries and types of services, visit Forms and Publications
(edd.ca.gov/payroll_taxes/forms_and_publications.htm) or contact the Taxpayer Assistance Center at
1-888-745-3886. If outside the U.S. or Canada, contact 1-916-464-3502.
MARITAL STATUS, WITHHOLDING ALLOWANCES, AND EXEMPTIONS
FORM W-4 AND DE 4
Beginning January 1, 2020, the Internal Revenue Services (IRS) Employee’s Withholding Certificate (Form W-4) is
used for federal income tax withholding only. The employee must file the state form Employee’s Withholding Allowance
Certificate (DE 4) for the appropriate PIT withholding.
If employees expect to itemize deductions on their California income tax return, they can claim additional withholding
allowances, which are greater than their regular withholding allowances. When reduced withholding amounts are
appropriate because of large amounts of itemized deductions, employees must complete a DE 4, including the
attached worksheets, to support additional allowances for the itemized deductions. For information on treatment of
additional withholding allowances for estimated deductions, refer to “Instructions for Additional Withholding Allowances
for Estimated Deductions” on page 17 and the “Estimated Deduction” table on page 19.
Use of the DE 4 is no longer optional; therefore, when employees provide you with a DE 4, you must use it to
determine their California PIT withholdings. You can download the DE 4 (PDF) (edd.ca.gov/pdf_pub_ctr/de4.pdf) or
contact the Taxpayer Assistance Center at 1-888-745-3886.
Employees may request that no California PIT be withheld if they:
• Incurred no liability for federal/state income tax for the prior tax year and
• Anticipate that no federal/state income tax liability will be incurred for the current tax year.
Action Required: Each employee must complete a DE 4 with the word “EXEMPT” in Line 1.
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 DE 4 unless you receive a written notice from the Franchise
Tax Board (FTB) to withhold at a special rate. To maintain “EXEMPT” status, the
employee must file a new DE 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 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
DE 4 withholding allowances for California PIT withholding purposes.
Employee admits that DE 4 is When you receive an invalid DE 4, do not use it to calculate PIT withholding.
false Ask the employee for a new DE 4. If the employee does not give you a valid
DE 4, 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.
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EMPLOYER’S OBLIGATIONS FOR THE FORMS W-4 AND DE 4
When you hire an employee, you must have the employee complete and provide a signed withholding exemption
certificate, federal Form W-4 and a DE 4. The Form W-4 is used to withhold federal income tax and the DE 4 is used
for the appropriate California Personal Income Tax (PIT) withholding. If an employee fails to give you a properly
completed Form DE 4, you must withhold state income taxes from the employee’s wages as if the employee were
single and claiming no withholding allowances.
The requirements for a complete exemption from state wage withholding are the same as the federal requirements.
You will 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 provided to the
employer by the employee which contains statements that:
• The employee incurred no liability for federal income tax imposed for the preceding tax year; and
• The employee anticipates that they will incur no liability for federal income tax for the current tax year.
A DE 4 claiming exemption from withholding is valid only during the calendar year it was filed with the employer. To
continue exemption 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 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 in their payroll records.
The DE 4 is considered invalid* if either of the following two conditions exist:
• The employee makes major changes to DE 4, such as crossing out words or writing more than is asked.
• The employee admits that the 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 Franchise Tax Board or the Employment Development Department (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.
For the latest tax news and employer resources, visit
California Employer News and Updates
(edd.ca.gov/payroll_taxes/employer-news.htm).
Subscribe to the EDD no-fee email subscription services
(edd.ca.gov/about_edd/get_email_notices.htm).
edd.ca.gov 14 Taxpayer Assistance Center 1-888-745-3886
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HOW TO DETERMINE PIT WITHHOLDING AMOUNTS
Refer to page 17 for the 2023 PIT withholding schedules and information on how to calculate withholdings.
What if Your Employee Wants Additional PIT Withholding?
In addition to the tax withholding requirement from salaries and wages, you may, upon written request from the
employee, agree to withhold an additional amount from the employee’s wages. This agreement will be effective for
the periods you and the employee mutually agree upon or until written termination of the agreement.
If employees rely on the Form W-4 instructions when calculating California withholding allowances, their California PIT
could be significantly under withheld. This is particularly true if the household income is derived from more than one
source. In order to determine the appropriate California PIT withholding, employees must complete the DE 4. 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.
HOW TO WITHHOLD PIT ON SUPPLEMENTAL WAGES
Supplemental wages include, but are not limited to, bonuses, overtime pay, sales awards, commissions, stock
options, vacation pay, and dismissal or severance pay. Under certain circumstances, bonuses and stock options are
taxed at a different flat rate than other types of supplemental wages (refer to “Supplemental Wages” below). This only
applies to stock options that are considered wages subject to PIT withholding.
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:
Supplemental Wages Percentage
Bonuses and stock options 10.23 percent (.1023)
Other types (such as overtime pay, commissions,
sales awards, severance, and vacation pay) 6.6 percent (.066)
To find out if stock options are wages subject to PIT withholding, obtainInformation Sheet: Stock Options (DE 231SK)
(PDF) (edd.ca.gov/pdf_pub_ctr/de231sk.pdf) or contact the Taxpayer Assistance Center at 1-888-745-3886.
QUARTERLY ESTIMATED PAYMENTS
Wages are subject to mandatory California PIT withholding at the time they are paid to the employee. Quarterly
estimates paid directly to the Franchise Tax Board (FTB) are intended to satisfy taxes on income that is not subject to
withholding. Quarterly estimates paid by an employee directly to FTB in lieu of proper withholdings from wages may
result in an assessment to the employer. If you have questions regarding quarterly estimated payments, contact the
FTB at 1-800-852-5711.
edd.ca.gov 15 Taxpayer Assistance Center 1-888-745-3886
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WAGES PAID TO CALIFORNIA RESIDENTS
If Then
A California resident Wages paid to the resident employee are subject to California PIT withholding, and
performs services in PIT must be withheld from all wages paid, in accordance with the employee’s
California or in another DE 4. Refer to the withholding requirements on page 13.
state. The wages paid must be reported as PIT wages on the Quarterly Contribution
Return and Report of Wages (Continuation) (DE 9C). The PIT withheld must also be
reported on the DE 9C.
A California resident Make the withholding required by the other jurisdiction, and:
performs services that are For California, withhold the amount by which the California withholding
subject to personal income •
amount exceeds the withholding amount for the other jurisdiction, or
tax withholding laws of
both California and another • Do not withhold any California PIT if the withholding amount for the other
state, political subdivision, jurisdiction is equal to, or greater than, the withholding amount for California.
or the District of Columbia. The wages reported as PIT wages on the Quarterly Contribution Return and Report
of Wages (Continuation) (DE 9C) for the year should be the same wages that are
entered in “Box 16” on your employee’s Form W-2. The PIT withheld must also be
reported on the DE 9C.
WAGES PAID TO NONRESIDENTS OF CALIFORNIA
If Then
A nonresident employee The wages paid to the nonresident employee are subject to California PIT withholding.
performs their entire The PIT must be withheld from all wages paid in accordance with the employee’s
service within California DE 4. However, the spouse of a military service member may exclude
during the year (may wages from California PIT withholding by marking the corresponding box when filing a
include spouse of a military DE 4. Refer to the withholding requirements on page 13.
service member). The wages paid must be reported as PIT wages on the DE 9C. The PIT withheld
must also be reported on the DE 9C.
A nonresident employee Only the wages earned in California are subject to California PIT withholding. The
performs services both amount of wages subject to California PIT withholding is that portion of the total
in California as well as in number of working days employed in California compared to the total number of
another state. working days employed in both California and the other state.
The California wages must be reported as PIT wages on the DE 9C. The PIT
withheld must also be reported on the DE 9C.
NOTE: For employees whose compensation depends on the volume of business
transacted, the amount of earnings subject to California PIT withholding is that
portion received for the volume of business transacted in California compared
to the total volume of business in both California and the other state.
PIT WITHHOLDING ON PAYMENTS TO NONRESIDENT INDEPENDENT CONTRACTORS
Please refer to FTB’s Resident and Nonresident Withholding Guidelines (Publication 1017)
(ftb.ca.gov/forms/misc/1017.html) for guidance regarding PIT withholding on payments to nonresident independent
contractors for services performed in California or contact the FTB at 1-888-792-4900.
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)
edd.ca.gov 16 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
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, contact:
Franchise Tax Board, Statistical Solutions 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.
Instructions for additional withholding allowances for estimated deductions:
All additional allowances for ESTIMATED DEDUCTIONS that are claimed on an Employee’s Withholding Allowance Certificate
(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
the Employee’s Withholding Allowance Certificate (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
2. Compute the tax to be withheld using either:
METHOD A - WAGE BRACKET TABLE METHOD
METHOD B - EXACT CALCULATION METHOD
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(c) of DE 4.
If the 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.
Employers may require employees to file DE 4 when they wish to use additional allowances for estimated deductions to
reduce the amount of wages subject to withholding.
As of January 1, 2020, the Form W-4 will be used for federal income tax withholding only. You must file a DE 4 to determine the
appropriate California PIT withholding. If you do not provide your employer with a withholding certificate, the employer must use
Single with Zero withholding allowance.
edd.ca.gov 17 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
METHOD A -WAGE BRACKET TABLE METHOD
To determine the amount of tax to be withheld follow these steps:
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
"ABLE 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 ($664); therefore, income tax should be withheld.
Step 2 Earnings for the payroll period .............................. $900.00
Subtract amount from TABLE 2 - ESTIMATED DEDUCTION TABLE ... -58.00
Salaries and wages subject to withholding .................... $842.00
Step 3 Total number of withholding allowances claimed ............... 5
Subtract number of estimated deduction allowances claimed.... -3
Net allowances for tax computation purposes .................. 2
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. .......................... $4.11
________________________________________________________________________________________________
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 ($2,875); therefore, income tax should be withheld.
Step 2 Earnings for the payroll period. ............................. $3,500.00
Subtract amount from TABLE 2 - ESTIMATED DEDUCTION TABLE. -333.00
Salaries and wages subject to withholding. ................... $3,167.00
Step 3 Total number of withholding allowances claimed. .............. 6
Subtract number of estimated deduction allowances claimed.... -4
Net allowances for tax computation purposes. ................. 2
Step 4 Refer to the appropriate wage bracket table (monthly taxable
earnings of $3,167 with two deductions) to arrive at the
amount of tax to be withheld. ................................ $6.93
edd.ca.gov 18 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
METHOD A---WAGE BRACKET TABLE METHOD
TABLE 1 - LOW INCOME EXEMPTION TABLE
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
WEEKLY $332 $332 $664 $664
BIWEEKLY $664 $664 $1,327 $1,327
SEMI-MONTHLY $719 $719 $1,438 $1,438
MONTHLY $1,438 $1,438 $2,875 $2,875
QUARTERLY $4,313 $4,313 $8,626 $8,626
SEMI-ANNUAL $8,626 $8,626 $17,252 $17,252
ANNUAL $17,252 $17,252 $34,503 $34,503
DAILY/MISCELLANEOUS $66 $66 $133 $133
TABLE 2 - ESTIMATED DEDUCTION TABLE
PAYROLL PERIOD
ADDITIONAL
WITHHOLDING BI- SEMI- SEMI- DAILY/
ALLOWANCES * WEEKLY WEEKLY MONTHLY MONTHLY QUARTERLY ANNUAL ANNUAL MISC.
1 $19 $38 $42 $83 $250 $500 $1,000 $4
2 $38 $77 $83 $167 $500 $1,000 $2,000 $8
3 $58 $115 $125 $250 $750 $1,500 $3,000 $12
4 $77 $154 $167 $333 $1,000 $2,000 $4,000 $15
5 $96 $192 $208 $417 $1,250 $2,500 $5,000 $19
6 $115 $231 $250 $500 $1,500 $3,000 $6,000 $23
7 $135 $269 $292 $583 $1,750 $3,500 $7,000 $27
8 $154 $308 $333 $667 $2,000 $4,000 $8,000 $31
9 $173 $346 $375 $750 $2,250 $4,500 $9,000 $35
10** $192 $385 $417 $833 $2,500 $5,000 $10,000 $38
*Number of Additional Withholding Allowances for Estimated Deductions claimed on Form W-4 or DE 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.
edd.ca.gov 19 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
SINGLE PERSONS, DUAL INCOME MARRIED
OR MARRIED WITH MULTIPLE EMPLOYERS----WEEKLY PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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
160 170 0.71
170 180 0.82
180 190 0.93
190 200 1.04
200 210 1.15
210 220 1.26
220 230 1.37
230 240 1.48
240 250 1.59
250 260 1.70
260 270 1.81
270 280 1.92
280 290 2.03
290 300 2.16
300 310 2.38
310 320 2.60
320 330 2.82
330 340 3.04 0.08
340 350 3.26 0.30
350 360 3.48 0.52
360 370 3.70 0.74
370 380 3.92 0.96
380 390 4.14 1.18
390 400 4.36 1.40
400 410 4.58 1.62
410 420 4.80 1.84
420 430 5.02 2.06
430 440 5.24 2.28
440 450 5.46 2.50
450 460 5.68 2.72
460 480 6.01 3.05 0.09
480 500 6.45 3.49 0.53
500 520 6.89 3.93 0.97
520 540 7.33 4.37 1.41
540 560 7.77 4.81 1.85
560 600 8.86 5.91 2.95
600 640 10.62 7.67 4.71 1.75
640 680 12.38 9.43 6.47 3.51 0.55
680 720 14.14 11.19 8.23 5.27 2.31
720 760 15.90 12.95 9.99 7.03 4.07 1.11
760 800 17.66 14.71 11.75 8.79 5.83 2.87
800 840 19.42 16.47 13.51 10.55 7.59 4.63 1.67
840 880 21.91 18.95 15.99 13.03 10.07 7.11 4.16 1.20
880 920 24.55 21.59 18.63 15.67 12.71 9.75 6.80 3.84 0.88
920 970 27.52 24.56 21.60 18.64 15.68 12.72 9.77 6.81 3.85 0.89
970 1070 32.47 29.51 26.55 23.59 20.63 17.67 14.72 11.76 8.80 5.84 2.88
1070 1170 39.31 36.35 33.39 30.43 27.47 24.52 21.56 18.60 15.64 12.68 9.72
1170 1270 48.11 45.15 42.19 39.23 36.27 33.32 30.36 27.40 24.44 21.48 18.52
1270 1370 56.91 53.95 50.99 48.03 45.07 42.12 39.16 36.20 33.24 30.28 27.32
1370 1470 66.35 63.39 60.44 57.48 54.52 51.56 48.60 45.64 42.68 39.72 36.76
1470 and over (Use Method B -Exact Calculation Method)
edd.ca.gov 20 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
MARRIED PERSONS----WEEKLY PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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
160 170 0.71
170 180 0.82
180 190 0.93
190 200 1.04
200 210 1.15
210 220 1.26
220 230 1.37
230 240 1.48
240 250 1.59
250 260 1.70
260 270 1.81
270 280 1.92
280 290 2.03
290 300 2.14
300 310 2.25
310 320 2.36
320 330 2.47
330 340 2.58
340 350 2.69
350 360 2.80
360 370 2.91
370 380 3.02 0.07
380 390 3.13 0.18
390 400 3.24 0.29
400 410 3.35 0.40
410 420 3.46 0.51
420 430 3.57 0.62
430 440 3.68 0.73
440 460 3.85 0.89
460 480 4.07 1.11
480 500 4.31 1.35
500 520 4.75 1.79
520 540 5.19 2.23
540 560 5.63 2.67
560 580 6.07 3.11
580 600 6.51 3.55
600 620 6.95 3.99
620 640 7.39 4.43
640 660 7.83 4.87
660 680 8.27 5.31 0.15
680 700 8.71 5.75 0.59
700 720 9.15 6.19 1.03
720 740 9.59 6.63 1.47
740 760 10.03 7.07 1.91
760 780 10.47 7.51 2.35
780 800 10.91 7.95 2.79
800 820 11.35 8.39 3.23 0.27
820 840 11.79 8.83 3.67 0.71
840 860 12.23 9.27 4.11 1.15
860 880 12.67 9.71 4.55 1.59
--- CONTINUED NEXT PAGE ---
edd.ca.gov 21 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
MARRIED PERSONS----WEEKLY PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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 13.11 10.15 4.99 2.03
900 920 13.55 10.59 5.43 2.47
920 940 13.99 11.03 5.87 2.91
940 960 14.43 11.47 6.31 3.35 0.39
960 980 14.87 11.91 6.75 3.79 0.83
980 1000 15.31 12.35 7.19 4.23 1.27
1000 1020 15.75 12.79 7.63 4.67 1.71
1020 1040 16.41 13.45 8.07 5.11 2.15
1040 1060 17.29 14.33 8.51 5.55 2.59
1060 1080 18.17 15.21 8.95 5.99 3.03 0.08
1080 1100 19.05 16.09 9.39 6.43 3.47 0.52
1100 1120 19.93 16.97 9.83 6.87 3.91 0.96
1120 1140 20.81 17.85 10.49 7.53 4.57 1.61
1140 1170 21.91 18.95 11.59 8.63 5.67 2.71
1170 1200 23.23 20.27 12.91 9.95 6.99 4.03 1.07
1200 1230 24.55 21.59 14.23 11.27 8.31 5.35 2.39
1230 1260 25.87 22.91 15.55 12.59 9.63 6.67 3.71 0.76
1260 1290 27.19 24.23 16.87 13.91 10.95 7.99 5.03 2.08
1290 1320 28.51 25.55 18.19 15.23 12.27 9.31 6.35 3.40 0.44
1320 1350 29.83 26.87 19.51 16.55 13.59 10.63 7.67 4.72 1.76
1350 1390 31.37 28.41 21.05 18.09 15.13 12.17 9.21 6.26 3.30 0.34
1390 1430 33.13 30.17 22.81 19.85 16.89 13.93 10.97 8.02 5.06 2.10
1430 1470 34.89 31.93 24.57 21.61 18.65 15.69 12.73 9.78 6.82 3.86 0.90
1470 1510 36.65 33.69 26.33 23.37 20.41 17.45 14.49 11.54 8.58 5.62 2.66
1510 1550 38.41 35.45 28.09 25.13 22.17 19.21 16.25 13.30 10.34 7.38 4.42
1550 1590 40.52 37.56 29.85 26.89 23.93 20.97 18.01 15.06 12.10 9.14 6.18
1590 1630 43.16 40.20 31.61 28.65 25.69 22.73 19.77 16.82 13.86 10.90 7.94
1630 1670 45.80 42.84 33.37 30.41 27.45 24.49 21.53 18.58 15.62 12.66 9.70
1670 1710 48.44 45.48 35.92 32.96 30.00 27.04 24.08 21.13 18.17 15.21 12.25
1710 1750 51.08 48.12 38.56 35.60 32.64 29.68 26.72 23.77 20.81 17.85 14.89
1750 1810 54.38 51.42 41.86 38.90 35.94 32.98 30.02 27.07 24.11 21.15 18.19
1810 1870 58.34 55.38 45.82 42.86 39.90 36.94 33.98 31.03 28.07 25.11 22.15
1870 1950 62.96 60.00 50.44 47.48 44.52 41.56 38.60 35.65 32.69 29.73 26.77
1950 2030 68.24 65.28 55.72 52.76 49.80 46.84 43.88 40.93 37.97 35.01 32.05
2030 2130 74.18 71.22 61.66 58.70 55.74 52.78 49.82 46.87 43.91 40.95 37.99
2130 2280 84.34 81.39 69.91 66.95 63.99 61.03 58.07 55.12 52.16 49.20 46.24
2280 2430 97.54 94.59 82.82 79.86 76.90 73.95 70.99 68.03 65.07 62.11 59.15
2430 2580 110.74 107.79 96.02 93.06 90.10 87.15 84.19 81.23 78.27 75.31 72.35
2580 2730 124.02 121.06 109.22 106.26 103.30 100.35 97.39 94.43 91.47 88.51 85.55
2730 2880 139.36 136.40 123.21 120.25 117.29 114.33 111.37 108.41 105.45 102.50 99.54
2880 and over (Use Method B -Exact Calculation Method)
edd.ca.gov 22 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
UNMARRIED HEAD OF HOUSEHOLD----WEEKLY PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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
250 260 0.60
260 270 0.71
270 280 0.82
280 290 0.93
290 300 1.04
300 310 1.15
310 320 1.26
320 330 1.37
330 340 1.48
340 350 1.59
350 360 1.70
360 370 1.81
370 380 1.92
380 390 2.03
390 400 2.14
400 410 2.25
410 420 2.36
420 430 2.47
430 440 2.58
440 450 2.69
450 460 2.80
460 470 2.91
470 480 3.02 0.07
480 490 3.13 0.18
490 500 3.24 0.29
500 520 3.41 0.45
520 540 3.63 0.67
540 560 3.85 0.89
560 580 4.07 1.11
580 600 4.30 1.34
600 620 4.74 1.78
620 640 5.18 2.22
640 660 5.62 2.66
660 680 6.06 3.10 0.14
680 700 6.50 3.54 0.58
700 740 7.16 4.20 1.24
740 780 8.04 5.08 2.12
780 820 8.92 5.96 3.00 0.04
820 860 9.80 6.84 3.88 0.92
860 900 10.68 7.72 4.76 1.80
900 950 11.67 8.71 5.75 2.79
950 1010 12.88 9.92 6.96 4.00 1.04
1010 1070 14.20 11.24 8.28 5.32 2.36
1070 1150 15.74 12.78 9.82 6.86 3.90 0.94
1150 1240 19.24 16.28 13.32 10.36 7.40 4.44 1.48
1240 1360 23.86 20.90 17.94 14.98 12.02 9.06 6.10 3.14 0.18
1360 1490 30.19 27.23 24.27 21.31 18.35 15.39 12.44 9.48 6.52 3.56 0.60
1490 1630 39.10 36.14 33.18 30.22 27.26 24.30 21.35 18.39 15.43 12.47 9.51
1630 1770 49.02 46.06 43.10 40.14 37.18 34.22 31.27 28.31 25.35 22.39 19.43
1770 1910 61.34 58.38 55.42 52.46 49.50 46.54 43.59 40.63 37.67 34.71 31.75
1910 2050 74.30 71.34 68.38 65.43 62.47 59.51 56.55 53.59 50.63 47.67 44.71
2050 and over (Use Method B -Exact Calculation Method)
edd.ca.gov 23 Taxpayer Assistance Center 1-888-745-3886
|
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
SINGLE PERSONS, DUAL INCOME MARRIED
OR MARRIED WITH MULTIPLE EMPLOYERS----BIWEEKLY PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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
260 280 0.77
280 300 0.99
300 320 1.21
320 340 1.43
340 360 1.65
360 380 1.87
380 400 2.09
400 420 2.31
420 440 2.53
440 460 2.75
460 480 2.97
480 500 3.19
500 520 3.41
520 540 3.63
540 560 3.85
560 580 4.07
580 600 4.31
600 620 4.75
620 640 5.19
640 660 5.63
660 680 6.07 0.15
680 700 6.51 0.59
700 720 6.95 1.03
720 740 7.39 1.47
740 760 7.83 1.91
760 780 8.27 2.35
780 800 8.71 2.79
800 820 9.15 3.23
820 860 9.81 3.89
860 900 10.69 4.77
900 940 11.57 5.65
940 980 12.45 6.53 0.61
980 1020 13.33 7.41 1.49
1020 1070 14.32 8.40 2.48
1070 1120 15.42 9.50 3.58
1120 1170 17.07 11.15 5.23
1170 1220 19.27 13.35 7.43 1.51
1220 1270 21.47 15.55 9.63 3.71
1270 1320 23.67 17.75 11.83 5.91
1320 1370 25.87 19.95 14.03 8.11 2.20
1370 1420 28.07 22.15 16.23 10.31 4.40
1420 1470 30.27 24.35 18.43 12.51 6.60 0.68
1470 1520 32.47 26.55 20.63 14.71 8.80 2.88
1520 1620 35.77 29.85 23.93 18.01 12.10 6.18 0.26
1620 1720 40.52 34.60 28.68 22.76 16.85 10.93 5.01
1720 1880 49.10 43.18 37.26 31.34 25.43 19.51 13.59 7.67 1.75
1880 2040 59.66 53.74 47.82 41.90 35.99 30.07 24.15 18.23 12.31 6.40 0.48
2040 2200 70.22 64.30 58.38 52.46 46.55 40.63 34.71 28.79 22.87 16.96 11.04
2200 2380 83.02 77.10 71.18 65.27 59.35 53.43 47.51 41.59 35.68 29.76 23.84
2380 2560 98.86 92.94 87.02 81.11 75.19 69.27 63.35 57.43 51.52 45.60 39.68
2560 2740 114.70 108.78 102.86 96.95 91.03 85.11 79.19 73.27 67.36 61.44 55.52
2740 and over (Use Method B - Exact Calculation Method)
edd.ca.gov 24 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
MARRIED PERSONS----BIWEEKLY PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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
260 280 0.77
280 300 0.99
300 320 1.21
320 340 1.43
340 360 1.65
360 380 1.87
380 400 2.09
400 420 2.31
420 440 2.53
440 460 2.75
460 480 2.97
480 500 3.19
500 520 3.41
520 540 3.63
540 560 3.85
560 580 4.07
580 600 4.29
600 620 4.51
620 640 4.73
640 660 4.95
660 680 5.17
680 700 5.39
700 720 5.61
720 740 5.83
740 760 6.05 0.13
760 780 6.27 0.35
780 800 6.49 0.57
800 820 6.71 0.79
820 840 6.93 1.01
840 860 7.15 1.23
860 880 7.37 1.45
880 900 7.59 1.67
900 920 7.81 1.89
920 940 8.03 2.11
940 960 8.25 2.33
960 980 8.47 2.55
980 1000 8.84 2.92
1000 1020 9.28 3.36
1020 1060 9.94 4.02
1060 1100 10.82 4.90
1100 1140 11.70 5.78
1140 1180 12.58 6.66 0.75
1180 1220 13.46 7.54 1.63
1220 1260 14.34 8.42 2.51
1260 1300 15.22 9.30 3.39
1300 1340 16.10 10.18 4.27
1340 1380 16.98 11.06 5.15
1380 1420 17.86 11.94 6.03 0.11
1420 1460 18.74 12.82 6.91 0.99
1460 1500 19.62 13.70 7.79 1.87
--- CONTINUED NEXT PAGE
edd.ca.gov 25 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
MARRIED PERSONS----BIWEEKLY PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
BUT
AT LESS 0 1 2 3 4 5 6 7 8 9 10
LEAST THAN OR MORE
1500 1540 20.50 14.58 8.67 2.75
1540 1580 21.38 15.46 9.55 3.63
1580 1620 22.26 16.34 10.43 4.51
1620 1660 23.14 17.22 11.31 5.39
1660 1700 24.02 18.10 12.19 6.27 0.35
1700 1740 24.90 18.98 13.07 7.15 1.23
1740 1780 25.78 19.86 13.95 8.03 2.11
1780 1820 26.66 20.74 14.83 8.91 2.99
1820 1860 27.54 21.62 15.71 9.79 3.87
1860 1900 28.42 22.50 16.59 10.67 4.75
1900 1940 29.30 23.38 17.47 11.55 5.63
1940 1980 30.18 24.26 18.35 12.43 6.51 0.59
1980 2020 31.06 25.14 19.23 13.31 7.39 1.47
2020 2060 31.94 26.02 20.11 14.19 8.27 2.35
2060 2100 33.70 27.78 21.86 15.95 10.03 4.11
2100 2140 35.46 29.54 23.62 17.71 11.79 5.87
2140 2180 37.22 31.30 25.38 19.47 13.55 7.63 1.71
2180 2220 38.98 33.06 27.14 21.23 15.31 9.39 3.47
2220 2260 40.74 34.82 28.90 22.99 17.07 11.15 5.23
2260 2300 42.50 36.58 30.66 24.75 18.83 12.91 6.99 1.07
2300 2350 44.48 38.56 32.64 26.73 20.81 14.89 8.97 3.05
2350 2400 46.68 40.76 34.84 28.93 23.01 17.09 11.17 5.25
2400 2450 48.88 42.96 37.04 31.13 25.21 19.29 13.37 7.45 1.54
2450 2500 51.08 45.16 39.24 33.33 27.41 21.49 15.57 9.65 3.74
2500 2550 53.28 47.36 41.44 35.53 29.61 23.69 17.77 11.85 5.94 0.02
2550 2600 55.48 49.56 43.64 37.73 31.81 25.89 19.97 14.05 8.14 2.22
2600 2650 57.68 51.76 45.84 39.93 34.01 28.09 22.17 16.25 10.34 4.42
2650 2700 59.88 53.96 48.04 42.13 36.21 30.29 24.37 18.45 12.54 6.62 0.70
2700 2750 62.08 56.16 50.24 44.33 38.41 32.49 26.57 20.65 14.74 8.82 2.90
2750 2800 64.28 58.36 52.44 46.53 40.61 34.69 28.77 22.85 16.94 11.02 5.10
2800 2850 66.48 60.56 54.64 48.73 42.81 36.89 30.97 25.05 19.14 13.22 7.30
2850 2900 68.68 62.76 56.84 50.93 45.01 39.09 33.17 27.25 21.34 15.42 9.50
2900 2950 70.88 64.96 59.04 53.13 47.21 41.29 35.37 29.45 23.54 17.62 11.70
2950 3000 73.08 67.16 61.24 55.33 49.41 43.49 37.57 31.65 25.74 19.82 13.90
3000 3050 75.28 69.36 63.44 57.53 51.61 45.69 39.77 33.85 27.94 22.02 16.10
3050 3150 78.58 72.66 66.74 60.83 54.91 48.99 43.07 37.15 31.24 25.32 19.40
3150 3250 85.00 79.08 73.17 67.25 61.33 55.41 49.49 43.58 37.66 31.74 25.82
3250 3350 91.60 85.68 79.77 73.85 67.93 62.01 56.09 50.18 44.26 38.34 32.42
3350 3450 98.20 92.28 86.37 80.45 74.53 68.61 62.69 56.78 50.86 44.94 39.02
3450 3550 104.80 98.88 92.97 87.05 81.13 75.21 69.29 63.38 57.46 51.54 45.62
3550 3700 113.05 107.13 101.22 95.30 89.38 83.46 77.54 71.63 65.71 59.79 53.87
3700 3850 122.95 117.03 111.12 105.20 99.28 93.36 87.44 81.53 75.61 69.69 63.77
3850 4050 134.50 128.58 122.67 116.75 110.83 104.91 98.99 93.08 87.16 81.24 75.32
4050 4250 147.70 141.78 135.87 129.95 124.03 118.11 112.19 106.28 100.36 94.44 88.52
4250 4450 163.41 157.49 151.57 145.65 139.74 133.82 127.90 121.98 116.06 110.15 104.23
4450 4700 183.21 177.29 171.37 165.45 159.54 153.62 147.70 141.78 135.86 129.95 124.03
4700 4950 205.21 199.29 193.37 187.45 181.54 175.62 169.70 163.78 157.86 151.95 146.03
4950 5250 229.41 223.49 217.57 211.65 205.74 199.82 193.90 187.98 182.06 176.15 170.23
5250 5550 257.24 251.32 245.40 239.48 233.57 227.65 221.73 215.81 209.89 203.98 198.06
5550 and over (Use Method B - Exact Calculation Method)
edd.ca.gov 26 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
UNMARRIED HEAD OF HOUSEHOLD----BIWEEKLY PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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
560 580 1.87
580 600 2.09
600 620 2.31
620 640 2.53
640 660 2.75
660 680 2.97
680 700 3.19
700 720 3.41
720 740 3.63
740 760 3.85
760 780 4.07
780 800 4.29
800 820 4.51
820 840 4.73
840 860 4.95
860 880 5.17
880 900 5.39
900 920 5.61
920 940 5.83
940 960 6.05 0.13
960 980 6.27 0.35
980 1000 6.49 0.57
1000 1040 6.82 0.90
1040 1080 7.26 1.34
1080 1120 7.70 1.78
1120 1160 8.14 2.22
1160 1200 8.60 2.68
1200 1250 9.59 3.67
1250 1300 10.69 4.77
1300 1350 11.79 5.87
1350 1400 12.89 6.97 1.05
1400 1450 13.99 8.07 2.15
1450 1500 15.09 9.17 3.25
1500 1550 16.19 10.27 4.35
1550 1600 17.29 11.37 5.45
1600 1650 18.39 12.47 6.55 0.63
1650 1700 19.49 13.57 7.65 1.73
1700 1750 20.59 14.67 8.75 2.83
1750 1800 21.69 15.77 9.85 3.93
1800 1850 22.79 16.87 10.95 5.03
1850 1950 24.44 18.52 12.60 6.68 0.77
1950 2050 26.64 20.72 14.80 8.88 2.97
2050 2150 28.84 22.92 17.00 11.08 5.17
2150 2250 31.04 25.12 19.20 13.28 7.37 1.45
2250 2350 34.51 28.59 22.67 16.76 10.84 4.92
2350 2500 40.01 34.09 28.17 22.26 16.34 10.42 4.50
2500 2650 46.61 40.69 34.77 28.86 22.94 17.02 11.10 5.18
2650 2850 54.31 48.39 42.47 36.56 30.64 24.72 18.80 12.88 6.97 1.05
2850 3050 66.98 61.06 55.14 49.23 43.31 37.39 31.47 25.55 19.64 13.72 7.80
3050 3250 80.18 74.26 68.34 62.43 56.51 50.59 44.67 38.75 32.84 26.92 21.00
3250 3550 98.04 92.12 86.20 80.29 74.37 68.45 62.53 56.61 50.70 44.78 38.86
3550 3850 124.44 118.52 112.60 106.69 100.77 94.85 88.93 83.01 77.10 71.18 65.26
3850 4150 152.70 146.78 140.86 134.94 129.02 123.11 117.19 111.27 105.35 99.43 93.52
1450 and over (Use Method B - Exact Calculation Method)
edd.ca.gov 27 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
SINGLE PERSONS, DUAL INCOME MARRIED
OR MARRIED WITH MULTIPLE EMPLOYERS----SEMI-MONTHLY PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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
300 320 1.03
320 340 1.25
340 360 1.47
360 380 1.69
380 400 1.91
400 420 2.13
420 440 2.35
440 460 2.57
460 480 2.79
480 500 3.01
500 540 3.34
540 580 3.78
580 620 4.22
620 660 4.68
660 700 5.56
700 740 6.44 0.03
740 780 7.32 0.91
780 820 8.20 1.79
820 860 9.08 2.67
860 900 9.96 3.55
900 940 10.84 4.43
940 980 11.72 5.31
980 1020 12.60 6.19
1020 1060 13.48 7.07 0.65
1060 1100 14.36 7.95 1.53
1100 1140 15.24 8.83 2.41
1140 1180 16.12 9.71 3.29
1180 1220 17.00 10.59 4.17
1220 1260 18.44 12.02 5.61
1260 1300 20.20 13.78 7.37 0.96
1300 1340 21.96 15.54 9.13 2.72
1340 1380 23.72 17.30 10.89 4.48
1380 1420 25.48 19.06 12.65 6.24
1420 1460 27.24 20.82 14.41 8.00 1.58
1460 1500 29.00 22.58 16.17 9.76 3.34
1500 1540 30.76 24.34 17.93 11.52 5.10
1540 1580 32.52 26.10 19.69 13.28 6.86 0.45
1580 1620 34.28 27.86 21.45 15.04 8.62 2.21
1620 1660 36.04 29.62 23.21 16.80 10.38 3.97
1660 1700 37.80 31.38 24.97 18.56 12.14 5.73
1700 1750 39.78 33.36 26.95 20.54 14.12 7.71 1.30
1750 1800 41.98 35.56 29.15 22.74 16.32 9.91 3.50
1800 1850 44.91 38.49 32.08 25.67 19.26 12.84 6.43 0.02
1850 1950 49.86 43.44 37.03 30.62 24.21 17.79 11.38 4.97
1950 2050 56.46 50.04 43.63 37.22 30.81 24.39 17.98 11.57 5.15
2050 2250 66.36 59.94 53.53 47.12 40.71 34.29 27.88 21.47 15.05 8.64 2.23
2250 2450 79.56 73.14 66.73 60.32 53.91 47.49 41.08 34.67 28.25 21.84 15.43
2450 2700 98.20 91.78 85.37 78.96 72.55 66.13 59.72 53.31 46.89 40.48 34.07
2700 2950 120.20 113.78 107.37 100.96 94.55 88.13 81.72 75.31 68.89 62.48 56.07
2950 3200 143.57 137.16 130.75 124.33 117.92 111.51 105.10 98.68 92.27 85.86 79.44
3200 and over (Use Method B - Exact Calculation Method)
edd.ca.gov 28 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
MARRIED PERSONS----SEMI-MONTHLY PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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
300 320 1.03
320 340 1.25
340 360 1.47
360 380 1.69
380 400 1.91
400 420 2.13
420 440 2.35
440 460 2.57
460 480 2.79
480 500 3.01
500 520 3.23
520 540 3.45
540 560 3.67
560 580 3.89
580 600 4.11
600 620 4.33
620 640 4.55
640 660 4.77
660 680 4.99
680 700 5.21
700 720 5.43
720 740 5.65
740 760 5.87
760 780 6.09
780 800 6.31
800 820 6.53 0.11
820 840 6.75 0.33
840 860 6.97 0.55
860 880 7.19 0.77
880 900 7.41 0.99
900 920 7.63 1.21
920 940 7.85 1.43
940 960 8.07 1.65
960 980 8.29 1.87
980 1000 8.51 2.09
1000 1040 8.84 2.42
1040 1080 9.29 2.88
1080 1120 10.17 3.76
1120 1160 11.05 4.64
1160 1200 11.93 5.52
1200 1240 12.81 6.40
1240 1280 13.69 7.28
1280 1320 14.57 8.16
1320 1360 15.45 9.04
1360 1400 16.33 9.92
1400 1440 17.21 10.80
1440 1480 18.09 11.68 0.49
1480 1520 18.97 12.56 1.38
1520 1560 19.85 13.44 2.26
1560 1600 20.73 14.32 3.14
--- CONTINUED NEXT PAGE ---
edd.ca.gov 29 Taxpayer Assistance Center 1-888-745-3886
|
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
MARRIED PERSONS----SEMI-MONTHLY PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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 21.61 15.20 4.02
1640 1680 22.49 16.08 4.90
1680 1720 23.37 16.96 5.78
1720 1760 24.25 17.84 6.66 0.24
1760 1800 25.13 18.72 7.54 1.12
1800 1840 26.01 19.60 8.42 2.00
1840 1880 26.89 20.48 9.30 2.88
1880 1920 27.77 21.36 10.18 3.76
1920 1960 28.65 22.24 11.06 4.64
1960 2000 29.53 23.12 11.94 5.52
2000 2040 30.41 24.00 12.82 6.40
2040 2080 31.29 24.88 13.70 7.28 0.87
2080 2120 32.17 25.76 14.58 8.16 1.75
2120 2160 33.05 26.64 15.46 9.04 2.63
2160 2200 33.93 27.52 16.34 9.92 3.51
2200 2250 35.19 28.78 17.33 10.91 4.50
2250 2300 37.39 30.98 18.43 12.01 5.60
2300 2350 39.59 33.18 19.53 13.11 6.70 0.29
2350 2400 41.79 35.38 20.63 14.21 7.80 1.39
2400 2450 43.99 37.58 21.73 15.31 8.90 2.49
2450 2500 46.19 39.78 23.83 17.41 11.00 4.59
2500 2550 48.39 41.98 26.03 19.61 13.20 6.79 0.37
2550 2600 50.59 44.18 28.23 21.81 15.40 8.99 2.57
2600 2650 52.79 46.38 30.43 24.01 17.60 11.19 4.77
2650 2700 54.99 48.58 32.63 26.21 19.80 13.39 6.97 0.56
2700 2750 57.19 50.78 34.83 28.41 22.00 15.59 9.17 2.76
2750 2800 59.39 52.98 37.03 30.61 24.20 17.79 11.37 4.96
2800 2850 61.59 55.18 39.23 32.81 26.40 19.99 13.57 7.16 0.75
2850 2900 63.79 57.38 41.43 35.01 28.60 22.19 15.77 9.36 2.95
2900 2950 65.99 59.58 43.63 37.21 30.80 24.39 17.97 11.56 5.15
2950 3000 68.19 61.78 45.83 39.41 33.00 26.59 20.17 13.76 7.35 0.94
3000 3075 70.94 64.53 48.58 42.16 35.75 29.34 22.92 16.51 10.10 3.69
3075 3150 74.24 67.83 51.88 45.46 39.05 32.64 26.22 19.81 13.40 6.99 0.57
3150 3225 77.54 71.13 55.18 48.76 42.35 35.94 29.52 23.11 16.70 10.29 3.87
3225 3300 80.84 74.43 58.48 52.06 45.65 39.24 32.82 26.41 20.00 13.59 7.17
3300 3375 84.14 77.73 61.78 55.36 48.95 42.54 36.12 29.71 23.30 16.89 10.47
3375 3475 89.27 82.86 65.63 59.21 52.80 46.39 39.97 33.56 27.15 20.74 14.32
3475 3575 95.87 89.46 70.03 63.61 57.20 50.79 44.37 37.96 31.55 25.14 18.72
3575 3675 102.47 96.06 75.34 68.93 62.51 56.10 49.69 43.27 36.86 30.45 24.04
3675 3775 109.07 102.66 81.94 75.53 69.11 62.70 56.29 49.87 43.46 37.05 30.64
3775 3975 118.97 112.56 91.84 85.43 79.01 72.60 66.19 59.77 53.36 46.95 40.54
3975 4175 132.17 125.76 105.04 98.63 92.21 85.80 79.39 72.97 66.56 60.15 53.74
4175 4450 147.85 141.43 120.71 114.30 107.89 101.48 95.06 88.65 82.24 75.82 69.41
4450 4850 171.47 165.06 142.99 136.58 130.16 123.75 117.34 110.92 104.51 98.10 91.69
4850 5250 206.67 200.26 174.77 168.36 161.94 155.53 149.12 142.70 136.29 129.88 123.46
5250 5650 241.87 235.46 209.97 203.56 197.14 190.73 184.32 177.90 171.49 165.08 158.66
5650 6050 278.63 272.22 245.17 238.76 232.34 225.93 219.52 213.10 206.69 200.28 193.86
6050 6500 322.11 315.69 287.11 280.70 274.28 267.87 261.46 255.04 248.63 242.22 235.80
6500 and over (Use Method B - Exact Calculation Method)
edd.ca.gov 30 Taxpayer Assistance Center 1-888-745-3886
|
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
UNMARRIED HEAD OF HOUSEHOLD----SEMI-MONTHLY PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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
600 620 1.94
620 640 2.16
640 660 2.38
660 680 2.60
680 700 2.82
700 720 3.04
720 740 3.26
740 760 3.48
760 780 3.70
780 800 3.92
800 820 4.14
820 840 4.36
840 860 4.58
860 880 4.80
880 900 5.02
900 940 5.35
940 980 5.79
980 1020 6.23
1020 1060 6.67 0.26
1060 1100 7.11 0.70
1100 1140 7.55 1.14
1140 1180 7.99 1.58
1180 1220 8.43 2.02
1220 1260 8.87 2.46
1260 1300 9.36 2.95
1300 1350 10.35 3.94
1350 1400 11.45 5.04
1400 1450 12.55 6.14
1450 1500 13.65 7.24 0.83
1500 1550 14.75 8.34 1.93
1550 1600 15.85 9.44 3.03
1600 1650 16.95 10.54 4.13
1650 1700 18.05 11.64 5.23
1700 1750 19.15 12.74 6.33
1750 1800 20.25 13.84 7.43 1.01
1800 1900 21.90 15.49 9.08 2.66
1900 2000 24.10 17.69 11.28 4.86
2000 2100 26.30 19.89 13.48 7.06 0.65
2100 2200 28.50 22.09 15.68 9.26 2.85
2200 2300 30.70 24.29 17.88 11.46 5.05
2300 2420 33.12 26.71 20.30 13.88 7.47 1.06
2420 2540 36.89 30.48 24.07 17.66 11.24 4.83
2540 2660 42.17 35.76 29.35 22.94 16.52 10.11 3.70
2660 2780 47.45 41.04 34.63 28.22 21.80 15.39 8.98 2.56
2780 2900 52.73 46.32 39.91 33.50 27.08 20.67 14.26 7.84 1.43
2900 3200 62.95 56.54 50.13 43.71 37.30 30.89 24.48 18.06 11.65 5.24
3200 3500 82.75 76.34 69.93 63.51 57.10 50.69 44.28 37.86 31.45 25.04 18.62
3500 3810 103.73 97.32 90.90 84.49 78.08 71.67 65.25 58.84 52.43 46.01 39.60
3810 4120 131.01 124.60 118.18 111.77 105.36 98.95 92.53 86.12 79.71 73.29 66.88
4120 4430 159.46 153.04 146.63 140.22 133.80 127.39 120.98 114.56 108.15 101.74 95.33
4430 and over (Use Method B - Exact Calculation Method)
edd.ca.gov 31 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
SINGLE PERSONS, DUAL INCOME MARRIED
OR MARRIED WITH MULTIPLE EMPLOYERS----MONTHLY PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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
600 640 2.05
640 680 2.49
680 720 2.93
720 760 3.37
760 800 3.81
800 840 4.25
840 880 4.69
880 920 5.13
920 960 5.57
960 1000 6.01
1000 1050 6.51
1050 1100 7.06
1100 1150 7.61
1150 1200 8.16
1200 1250 8.71
1250 1300 9.26
1300 1350 10.35
1350 1400 11.45
1400 1450 12.55
1450 1500 13.65 0.83
1500 1600 15.30 2.48
1600 1700 17.50 4.68
1700 1800 19.70 6.88
1800 1900 21.90 9.08
1900 2000 24.10 11.28
2000 2100 26.30 13.48 0.65
2100 2200 28.50 15.68 2.85
2200 2300 30.70 17.88 5.05
2300 2400 32.90 20.08 7.25
2400 2500 35.55 22.73 9.90
2500 2600 39.95 27.13 14.30 1.47
2600 2700 44.35 31.53 18.70 5.87
2700 2800 48.75 35.93 23.10 10.27
2800 2900 53.15 40.33 27.50 14.67 1.85
2900 3000 57.55 44.73 31.90 19.07 6.25
3000 3100 61.95 49.13 36.30 23.47 10.65
3100 3200 66.35 53.53 40.70 27.87 15.05 2.22
3200 3300 70.75 57.93 45.10 32.27 19.45 6.62
3300 3400 75.15 62.33 49.50 36.67 23.85 11.02
3400 3500 79.55 66.73 53.90 41.07 28.25 15.42 2.60
3500 3700 86.52 73.69 60.86 48.04 35.21 22.39 9.56
3700 3900 99.72 86.89 74.06 61.24 48.41 35.59 22.76 9.93
3900 4100 112.92 100.09 87.26 74.44 61.61 48.79 35.96 23.13 10.31
4100 4400 129.42 116.59 103.76 90.94 78.11 65.29 52.46 39.63 26.81 13.98 1.16
4400 4700 149.22 136.39 123.56 110.74 97.91 85.09 72.26 59.43 46.61 33.78 20.96
4700 5100 174.39 161.57 148.74 135.92 123.09 110.26 97.44 84.61 71.79 58.96 46.13
5100 5500 209.59 196.77 183.94 171.12 158.29 145.46 132.64 119.81 106.99 94.16 81.33
5500 5900 244.79 231.97 219.14 206.32 193.49 180.66 167.84 155.01 142.19 129.36 116.53
5900 6300 282.03 269.21 256.38 243.55 230.73 217.90 205.08 192.25 179.42 166.60 153.77
6300 and over (Use Method B - Exact Calculation Method)
edd.ca.gov 32 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
MARRIED PERSONS----MONTHLY PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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
600 640 2.05
640 680 2.49
680 720 2.93
720 760 3.37
760 800 3.81
800 840 4.25
840 880 4.69
880 920 5.13
920 960 5.57
960 1000 6.01
1000 1040 6.45
1040 1080 6.89
1080 1120 7.33
1120 1160 7.77
1160 1200 8.21
1200 1240 8.65
1240 1280 9.09
1280 1320 9.53
1320 1360 9.97
1360 1400 10.41
1400 1440 10.85
1440 1480 11.29
1480 1520 11.73
1520 1560 12.17
1560 1600 12.61
1600 1640 13.05 0.23
1640 1680 13.49 0.67
1680 1720 13.93 1.11
1720 1760 14.37 1.55
1760 1800 14.81 1.99
1800 1840 15.25 2.43
1840 1880 15.69 2.87
1880 1920 16.13 3.31
1920 1960 16.57 3.75
1960 2000 17.01 4.19
2000 2040 17.45 4.63
2040 2080 17.89 5.07
2080 2140 18.44 5.62
2140 2200 19.68 6.85
2200 2260 21.00 8.17
2260 2320 22.32 9.49
2320 2380 23.64 10.81
2380 2440 24.96 12.13
2440 2500 26.28 13.45
2500 2560 27.60 14.77
2560 2620 28.92 16.09
2620 2680 30.24 17.41
2680 2740 31.56 18.73
2740 2800 32.88 20.05
2800 2860 34.20 21.37
--- CONTINUED NEXT PAGE ---
edd.ca.gov 33 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
MARRIED PERSONS----MONTHLY PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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 35.52 22.69 0.33
2920 2980 36.84 24.01 1.65
2980 3040 38.16 25.33 2.97
3040 3100 39.48 26.65 4.29
3100 3160 40.80 27.97 5.61
3160 3220 42.12 29.29 6.93
3220 3280 43.44 30.61 8.25
3280 3340 44.76 31.93 9.57
3340 3400 46.08 33.25 10.89
3400 3460 47.40 34.57 12.21
3460 3520 48.72 35.89 13.53 0.70
3520 3580 50.04 37.21 14.85 2.02
3580 3640 51.36 38.53 16.17 3.34
3640 3700 52.68 39.85 17.49 4.66
3700 3800 54.44 41.61 19.25 6.42
3800 3900 56.64 43.81 21.45 8.62
3900 4000 58.84 46.01 23.65 10.82
4000 4100 61.04 48.21 25.85 13.02 0.20
4100 4200 63.24 50.41 28.05 15.22 2.40
4200 4300 65.44 52.61 30.25 17.42 4.60
4300 4400 67.64 54.81 32.45 19.62 6.80
4400 4500 70.38 57.55 34.65 21.82 9.00
4500 4600 74.78 61.95 36.85 24.02 11.20
4600 4700 79.18 66.35 39.05 26.22 13.40 0.57
4700 4800 83.58 70.75 41.25 28.42 15.60 2.77
4800 4900 87.98 75.15 43.45 30.62 17.80 4.97
4900 5000 92.38 79.55 47.65 34.83 22.00 9.17
5000 5100 96.78 83.95 52.05 39.23 26.40 13.57 0.75
5100 5200 101.18 88.35 56.45 43.63 30.80 17.97 5.15
5200 5300 105.58 92.75 60.85 48.03 35.20 22.37 9.55
5300 5400 109.98 97.15 65.25 52.43 39.60 26.77 13.95 1.12
5400 5500 114.38 101.55 69.65 56.83 44.00 31.17 18.35 5.52
5500 5600 118.78 105.95 74.05 61.23 48.40 35.57 22.75 9.92
5600 5700 123.18 110.35 78.45 65.63 52.80 39.97 27.15 14.32 1.50
5700 5800 127.58 114.75 82.85 70.03 57.20 44.37 31.55 18.72 5.90
5800 5900 131.98 119.15 87.25 74.43 61.60 48.77 35.95 23.12 10.30
5900 6000 136.38 123.55 91.65 78.83 66.00 53.17 40.35 27.52 14.70 1.87
6000 6200 142.98 130.15 98.25 85.43 72.60 59.77 46.95 34.12 21.30 8.47
6200 6400 151.78 138.95 107.05 94.23 81.40 68.57 55.75 42.92 30.10 17.27 4.44
6400 6600 160.58 147.75 115.85 103.03 90.20 77.37 64.55 51.72 38.90 26.07 13.24
6600 6800 169.38 156.55 124.65 111.83 99.00 86.17 73.35 60.52 47.70 34.87 22.04
6800 7000 181.84 169.02 133.45 120.63 107.80 94.97 82.15 69.32 56.50 43.67 30.84
7000 7200 195.04 182.22 142.25 129.43 116.60 103.77 90.95 78.12 65.30 52.47 39.64
7200 7400 208.24 195.42 153.98 141.15 128.33 115.50 102.67 89.85 77.02 64.20 51.37
7400 7600 221.44 208.62 167.18 154.35 141.53 128.70 115.87 103.05 90.22 77.40 64.57
7600 7800 234.64 221.82 180.38 167.55 154.73 141.90 129.07 116.25 103.42 90.60 77.77
7800 8100 251.14 238.32 196.88 184.05 171.23 158.40 145.57 132.75 119.92 107.10 94.27
8100 8500 274.24 261.42 219.98 207.15 194.33 181.50 168.67 155.85 143.02 130.20 117.37
8500 8900 300.64 287.82 246.38 233.55 220.73 207.90 195.07 182.25 169.42 156.60 143.77
8900 9400 330.34 317.52 276.08 263.25 250.43 237.60 224.77 211.95 199.12 186.30 173.47
9400 9900 373.74 360.91 309.94 297.11 284.28 271.46 258.63 245.81 232.98 220.15 207.33
9900 10500 422.14 409.31 358.34 345.51 332.68 319.86 307.03 294.21 281.38 268.55 255.73
10500 11100 474.94 462.11 411.14 398.31 385.48 372.66 359.83 347.01 334.18 321.35 308.53
11100 11800 532.14 519.31 468.34 455.51 442.68 429.86 417.03 404.21 391.38 378.55 365.73
11800 12500 603.30 590.47 533.30 520.47 507.64 494.82 481.99 469.17 456.34 443.51 430.69
12500 and over (Use Method B - Exact Calculation Method)
edd.ca.gov 34 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
UNMARRIED HEAD OF HOUSEHOLD----MONTHLY PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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
1400 1450 6.14
1450 1500 6.69
1500 1550 7.24
1550 1600 7.79
1600 1650 8.34
1650 1700 8.89
1700 1750 9.44
1750 1800 9.99
1800 1850 10.54
1850 1900 11.09
1900 1950 11.64
1950 2000 12.19
2000 2050 12.74
2050 2100 13.29 0.46
2100 2150 13.84 1.01
2150 2200 14.39 1.56
2200 2250 14.94 2.11
2250 2300 15.49 2.66
2300 2350 16.04 3.21
2350 2400 16.59 3.76
2400 2450 17.14 4.31
2450 2500 17.69 4.86
2500 2600 18.51 5.69
2600 2700 20.70 7.88
2700 2800 22.90 10.08
2800 2900 25.10 12.28
2900 3000 27.30 14.48 1.65
3000 3100 29.50 16.68 3.85
3100 3200 31.70 18.88 6.05
3200 3300 33.90 21.08 8.25
3300 3400 36.10 23.28 10.45
3400 3500 38.30 25.48 12.65
3500 3600 40.50 27.68 14.85 2.02
3600 3700 42.70 29.88 17.05 4.22
3700 3800 44.90 32.08 19.25 6.42
3800 3900 47.10 34.28 21.45 8.62
3900 4000 49.30 36.48 23.65 10.82
4000 4100 51.50 38.68 25.85 13.02 0.20
4100 4200 53.70 40.88 28.05 15.22 2.40
4200 4300 55.90 43.08 30.25 17.42 4.60
4300 4500 59.20 46.38 33.55 20.72 7.90
4500 4700 63.60 50.78 37.95 25.12 12.30
4700 4900 68.00 55.18 42.35 29.52 16.70 3.87
4900 5100 75.55 62.72 49.90 37.07 24.24 11.42
5100 5300 84.35 71.52 58.70 45.87 33.04 20.22 7.39
5300 5600 95.35 82.52 69.70 56.87 44.04 31.22 18.39 5.57
5600 5900 108.55 95.72 82.90 70.07 57.24 44.42 31.59 18.77 5.94
5900 6300 125.91 113.08 100.25 87.43 74.60 61.78 48.95 36.12 23.30 10.47
6300 6700 152.31 139.48 126.65 113.83 101.00 88.18 75.35 62.52 49.70 36.87 24.05
6700 7200 182.01 169.18 156.35 143.53 130.70 117.88 105.05 92.22 79.40 66.57 53.75
7200 7700 219.78 206.95 194.13 181.30 168.48 155.65 142.82 130.00 117.17 104.35 91.52
7700 8300 268.18 255.35 242.53 229.70 216.88 204.05 191.22 178.40 165.57 152.75 139.92
8300 8900 324.03 311.20 298.37 285.55 272.72 259.90 247.07 234.24 221.42 208.59 195.77
8900 and over (Use Method B - Exact Calculation Method)
edd.ca.gov 35 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
SINGLE PERSONS, DUAL INCOME MARRIED
OR MARRIED WITH MULTIPLE EMPLOYERS----DAILY / MISCELLANEOUS PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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 0.10
30 32 0.12
32 34 0.14
34 36 0.16
36 38 0.19
38 40 0.21
40 42 0.23
42 44 0.25
44 46 0.27
46 48 0.30
48 50 0.32
50 54 0.35
54 58 0.40
58 62 0.45
62 66 0.54
66 70 0.63 0.03
70 74 0.71 0.12
74 78 0.80 0.21
78 82 0.89 0.30
82 86 0.98 0.38
86 90 1.07 0.47
90 94 1.15 0.56
94 98 1.24 0.65 0.05
98 102 1.33 0.74 0.14
102 106 1.42 0.82 0.23
106 110 1.51 0.91 0.32
110 114 1.59 1.00 0.41
114 118 1.77 1.18 0.58
118 122 1.95 1.35 0.76 0.16
122 126 2.12 1.53 0.93 0.34
126 131 2.32 1.73 1.13 0.54
131 136 2.54 1.95 1.35 0.76 0.16
136 141 2.76 2.17 1.57 0.98 0.38
141 146 2.98 2.39 1.79 1.20 0.60 0.01
146 151 3.20 2.61 2.01 1.42 0.82 0.23
151 156 3.42 2.83 2.23 1.64 1.04 0.45
156 161 3.64 3.05 2.45 1.86 1.26 0.67 0.08
161 166 3.86 3.27 2.67 2.08 1.48 0.89 0.30
166 171 4.16 3.56 2.97 2.38 1.78 1.19 0.59
171 176 4.49 3.89 3.30 2.71 2.11 1.52 0.92 0.33
176 181 4.82 4.22 3.63 3.04 2.44 1.85 1.25 0.66 0.07
181 186 5.15 4.55 3.96 3.37 2.77 2.18 1.58 0.99 0.40
186 201 5.81 5.21 4.62 4.03 3.43 2.84 2.24 1.65 1.06 0.46
201 216 6.80 6.20 5.61 5.02 4.42 3.83 3.23 2.64 2.05 1.45 0.86
216 241 8.26 7.67 7.07 6.48 5.88 5.29 4.70 4.10 3.51 2.91 2.32
241 271 10.68 10.09 9.49 8.90 8.30 7.71 7.12 6.52 5.93 5.33 4.74
271 301 13.48 12.88 12.29 11.70 11.10 10.51 9.91 9.32 8.73 8.13 7.54
301 and over (Use Method B - Exact Calculation Method)
edd.ca.gov 36 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
MARRIED PERSONS----DAILY / MISCELLANEOUS PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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 0.14
34 36 0.16
36 38 0.19
38 40 0.21
40 42 0.23
42 44 0.25
44 46 0.27
46 48 0.30
48 50 0.32
50 52 0.34
0.00
52 54 0.36
54 56 0.38
56 58 0.41
58 60 0.43
60 62 0.45
62 64 0.47
64 66 0.49
66 68 0.52
68 70 0.54
70 72 0.56
72 74 0.58
74 76 0.60 0.01
76 78 0.63 0.03
78 80 0.65 0.05
80 82 0.67 0.08
82 84 0.69 0.10
84 86 0.71 0.12
86 88 0.74 0.14
88 90 0.76 0.16
90 92 0.78 0.19
92 94 0.80 0.21
94 96 0.82 0.23
96 98 0.85 0.25
98 100 0.88 0.29
100 102 0.92 0.33
102 104 0.97 0.37
104 106 1.01 0.42
106 108 1.06 0.46
108 110 1.10 0.51
110 112 1.14 0.55
112 114 1.19 0.59
114 118 1.25 0.66 0.07
118 122 1.34 0.75 0.15
122 126 1.43 0.84 0.24
126 130 1.52 0.92 0.33
130 134 1.61 1.01 0.42
134 138 1.69 1.10 0.51
138 142 1.78 1.19 0.59
142 146 1.87 1.28 0.68 0.09
146 150 1.96 1.36 0.77 0.18
--- CONTINUED NEXT PAGE ---
edd.ca.gov 37 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
MARRIED PERSONS----DAILY / MISCELLANEOUS PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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 2.05 1.45 0.86 0.26
154 158 2.13 1.54 0.95 0.35
158 162 2.22 1.63 1.03 0.44
162 166 2.31 1.72 1.12 0.53
166 170 2.40 1.80 1.21 0.62 0.02
170 174 2.49 1.89 1.30 0.70 0.11
174 178 2.57 1.98 1.39 0.79 0.20
178 182 2.66 2.07 1.47 0.88 0.29
182 186 2.75 2.16 1.56 0.97 0.37
186 190 2.84 2.24 1.65 1.06 0.46
190 195 2.94 2.34 1.75 1.15 0.56
195 200 3.05 2.45 1.86 1.26 0.67 0.08
200 205 3.16 2.56 1.97 1.37 0.78 0.19
205 210 3.34 2.75 2.16 1.56 0.97 0.37
210 215 3.56 2.97 2.38 1.78 1.19 0.59
215 220 3.78 3.19 2.60 2.00 1.41 0.81 0.22
220 225 4.00 3.41 2.82 2.22 1.63 1.03 0.44
225 230 4.22 3.63 3.04 2.44 1.85 1.25 0.66 0.07
230 235 4.44 3.85 3.26 2.66 2.07 1.47 0.88 0.29
235 240 4.66 4.07 3.48 2.88 2.29 1.69 1.10 0.51
240 245 4.88 4.29 3.70 3.10 2.51 1.91 1.32 0.73 0.13
245 250 5.10 4.51 3.92 3.32 2.73 2.13 1.54 0.95 0.35
250 255 5.32 4.73 4.14 3.54 2.95 2.35 1.76 1.17 0.57
255 260 5.54 4.95 4.36 3.76 3.17 2.57 1.98 1.39 0.79 0.20
260 265 5.76 5.17 4.58 3.98 3.39 2.79 2.20 1.61 1.01 0.42
265 270 5.98 5.39 4.80 4.20 3.61 3.01 2.42 1.83 1.23 0.64 0.04
270 275 6.20 5.61 5.02 4.42 3.83 3.23 2.64 2.05 1.45 0.86 0.26
275 280 6.42 5.83 5.24 4.64 4.05 3.45 2.86 2.27 1.67 1.08 0.48
280 285 6.64 6.05 5.46 4.86 4.27 3.67 3.08 2.49 1.89 1.30 0.70
285 290 6.86 6.27 5.68 5.08 4.49 3.89 3.30 2.71 2.11 1.52 0.92
290 300 7.19 6.60 6.01 5.41 4.82 4.22 3.63 3.04 2.44 1.85 1.25
300 310 7.63 7.04 6.45 5.85 5.26 4.66 4.07 3.48 2.88 2.29 1.69
310 320 8.18 7.59 7.00 6.40 5.81 5.21 4.62 4.03 3.43 2.84 2.24
320 330 8.84 8.25 7.66 7.06 6.47 5.87 5.28 4.69 4.09 3.50 2.90
330 340 9.50 8.91 8.32 7.72 7.13 6.53 5.94 5.35 4.75 4.16 3.56
340 350 10.16 9.57 8.98 8.38 7.79 7.19 6.60 6.01 5.41 4.82 4.22
350 360 10.82 10.23 9.64 9.04 8.45 7.85 7.26 6.67 6.07 5.48 4.88
360 380 11.81 11.22 10.63 10.03 9.44 8.84 8.25 7.66 7.06 6.47 5.87
380 400 13.13 12.54 11.95 11.35 10.76 10.16 9.57 8.98 8.38 7.79 7.19
400 425 14.62 14.02 13.43 12.84 12.24 11.65 11.05 10.46 9.87 9.27 8.68
425 455 16.79 16.19 15.60 15.00 14.41 13.82 13.22 12.63 12.03 11.44 10.85
455 490 19.65 19.05 18.46 17.86 17.27 16.68 16.08 15.49 14.89 14.30 13.71
490 530 22.95 22.35 21.76 21.16 20.57 19.98 19.38 18.79 18.19 17.60 17.01
530 570 26.75 26.16 25.56 24.97 24.37 23.78 23.19 22.59 22.00 21.40 20.81
570 and over (Use Method B - Exact Calculation Method)
edd.ca.gov 38 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
UNMARRIED HEAD OF HOUSEHOLD----DAILY / MISCELLANEOUS PAYROLL PERIOD
FOR WAGES PAID IN 2023
IF WAGES ARE... AND THE NUMBER OF WITHHOLDING ALLOWANCES CLAIMED IS...
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 0.19
58 60 0.21
60 62 0.23
62 64 0.25
64 66 0.27
66 68 0.30
68 70 0.32
70 72 0.34
72 74 0.36
74 76 0.38
76 78 0.41
78 80 0.43
80 82 0.45
82 84 0.47
84 86 0.49
86 88 0.52
88 90 0.54
90 92 0.56
92 94 0.58
94 96 0.60 0.01
96 100 0.64 0.04
100 104 0.68 0.09
104 108 0.73 0.13
108 112 0.77 0.18
112 116 0.81 0.22
116 121 0.87 0.27
121 126 0.98 0.38
126 131 1.09 0.49
131 136 1.20 0.60 0.01
136 141 1.31 0.71 0.12
141 146 1.42 0.82 0.23
146 151 1.53 0.93 0.34
151 156 1.64 1.04 0.45
156 161 1.75 1.15 0.56
161 166 1.86 1.26 0.67 0.08
166 171 1.97 1.37 0.78 0.19
171 176 2.08 1.48 0.89 0.30
176 181 2.19 1.59 1.00 0.41
181 186 2.30 1.70 1.11 0.52
186 191 2.41 1.81 1.22 0.63 0.03
191 196 2.52 1.92 1.33 0.74 0.14
196 206 2.68 2.09 1.50 0.90 0.31
206 216 2.90 2.31 1.72 1.12 0.53
216 226 3.12 2.53 1.94 1.34 0.75 0.15
226 236 3.50 2.90 2.31 1.72 1.12 0.53
236 246 3.94 3.34 2.75 2.16 1.56 0.97 0.37
246 256 4.38 3.78 3.19 2.60 2.00 1.41 0.81 0.22
256 276 5.04 4.44 3.85 3.26 2.66 2.07 1.47 0.88 0.29
276 296 6.11 5.52 4.93 4.33 3.74 3.14 2.55 1.96 1.36 0.77 0.17
296 321 7.60 7.01 6.41 5.82 5.22 4.63 4.04 3.44 2.85 2.25 1.66
321 351 9.46 8.86 8.27 7.68 7.08 6.49 5.89 5.30 4.71 4.11 3.52
351 381 12.10 11.50 10.91 10.32 9.72 9.13 8.53 7.94 7.35 6.75 6.16
381 411 14.87 14.27 13.68 13.08 12.49 11.90 11.30 10.71 10.11 9.52 8.93
411 and over (Use Method B - Exact Calculation Method)
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
METHOD B - EXACT CALCULATION METHOD
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 (Form W-4 or DE 4). This method also takes into consideration the
special treatment of additional allowances for estimated deductions.
The steps in computing the amount of tax to be withheld are as follows:
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 ($332); therefore, no income tax is to be withheld.
EXAMPLE B:Biweekly earnings of $1,600, 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 ($1,327); therefore, income tax should be withheld.
Step 2 Earnings for biweekly payroll period.......................... 1,600.00 $
Subtract amount from TABLE 2 - ESTIMATED DEDUCTION TABLE.... -38.00
Salaries and wages subject to withholding. .................... $ 1,562.00
Step 3 Subtract amount from TABLE 3 - STANDARD DEDUCTION TABLE..... -400.00
Taxable income................................................ $ 1,162.00
Step 4 Tax computation from TABLE 5 - TAX RATE TABLE:
Entry covering $1,162 (over $776 but not over $1,840).
2.2% amount over $776 (.022 x ([$1,162 – $776]) $ 8.49
Plus the marginal amount. ................................. +8.54
Computed tax. ............................................. 17.03
Step 5 Subtract amount from TABLE 4 - EXEMPTION ALLOWANCE TABLE.
for two regular withholding allowances.... ................. -11.85
Net amount of tax to be withheld............................ 5.18 $
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.
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
METHOD B -EXACT CALCULATION METHOD (CONTINUED)
EXAMPLE C: Monthly earnings of $5,100 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 ($2,875) therefore, income tax should be withheld.
Step 2 Earnings for monthly payroll period. $ 5,100.00
Not applicable - no estimated deduction allowance claimed.
Step 3 Subtract amount from TABLE 3 - STANDARD DEDUCTION TABLE. -867.00
Taxable income.............................................. $ 4,233.00
Step 4 Tax computation from TABLE 5 - TAX RATE TABLE:
Entry covering $4,233 (over $3,992 but not over $6,300).
4.4% of amount over $3,992 (.044 x ([$4,233 - $3,992]). $ 10.60
Plus marginal tax amount................................... +69.30
Computed tax. .............................................. $ 79.90
Step 5 Subtract amount from TABLE 4 – EXEMPTION ALLOWANCE TABLE for
5 regular withholding allowances............................. -64.17
Net amount of tax to be withheld........................... $ 15.73
EXAMPLE D: Weekly earnings of $800, unmarried head of household, and 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 ($664); therefore, income tax should be withheld.
Step 2 Earnings for weekly payroll period........................... 800.00 $
Not applicable - no estimated deduction allowance claimed.
Step 3 Subtract amount from TABLE 3 - STANDARD DEDUCTION TABLE ... -200.00
Taxable income .............................................. $ 600.00
Step 4 Tax computation from TABLE 5 - TAX RATE TABLE:
Entry covering $600 (over $389 but not over $921).
2.2% of amount over $389 (.022 x ([$600 - $389]). 4.64 $
Plus marginal tax amount. .................................. + 4.28
Computed tax. .............................................. $ 8.92
Step 5 Subtract amount from TABLE 4 - EXEMPTION ALLOWANCE TABLE for
3 regular withholding allowances. ............................ - 8.88
Net amount of tax to be withheld............................. $ 0.04
EXAMPLE E: Semi-monthly earnings of $2,100, 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 ($1,438); therefore, income tax should be withheld.
Step 2 Annualized wages and salary (24 x $2,100)................. $50,400.00
Not applicable - no estimated deduction allowance claimed.
Step 3 Subtract amount from TABLE 3 - STANDARD DEDUCTION TABLE...... -10,404.00
Taxable income................................................. $39,996.00
Step 4 Tax computation from TABLE 5 - TAX RATE TABLE:
Entry covering $39,996 (over $20,198 but not over $47,884).
2.2% of amount over $39,996 (.022 x [$39,996- $20,198]).... 435.56$
Plus marginal tax amount.................................... +222.18
Computed annual tax. ........................................ $ 657.74
Step 5 Subtract amount from TABLE 4 - EXEMPTION ALLOWANCE TABLE for
4 regular withholding allowances............................... -616.00
Annual amount of tax to be withheld............................ $ 41.74
Divide by number of payroll periods in year (24)............... $ 1.74
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.
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
METHOD B -EXACT CALCULATION METHOD (CONTINUED)
EXAMPLE F: Annual earnings of $57,000, 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 ($34,503); therefore, income tax should be withheld.
Step 2 Annualized wages and/or monthly salary (12 x $4,750)....... . 57,000.00 $
Not applicable - no estimated deduction allowance claimed.
Step 3 Subtract amount from TABLE 3 - STANDARD DEDUCTION TABLE. ..... -10,404.00
Taxable income................................................. $ 46,596.00
Step 4 Tax computation from TABLE 5 - TAX RATE TABLE:
Entry covering $46,596 (over $20,198 but not over $47,884)
2.2% of amount over $20,198 (.022 x ([$46,596 - $20,198]).... $ 580.76
Plus marginal tax amount. ................................... +222.18
Computed annual tax. ........................................ $ 802.94
Step 5 Subtract amount from TABLE 4 - EXEMPTION ALLOWANCE TABLE for
4 regular withholding allowances. .............................. -616.00
Annual amount of tax to be withheld. ........................... $ 186.94
Divide by number of payroll periods in year (12). ............. $ 15.58
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.
edd.ca.gov 42 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
METHOD B---EXACT CALCULATION METHOD
TABLE 1 - LOW INCOME EXEMPTION TABLE
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
WEEKLY $332 $332 $664 $664
BIWEEKLY $664 $664 $1,327 $1,327
SEMI-MONTHLY $719 $719 $1,438 $1,438
MONTHLY $1,438 $1,438 $2,875 $2,875
QUARTERLY $4,313 $4,313 $8,626 $8,626
SEMI-ANNUAL $8,626 $8,626 $17,252 $17,252
ANNUAL $17,252 $17,252 $34,503 $34,503
DAILY/MISCELLANEOUS $66 $66 $133 $133
TABLE 2 - ESTIMATED DEDUCTION TABLE
PAYROLL PERIOD
ADDITIONAL
WITHHOLDING BI- SEMI- SEMI- DAILY/
ALLOWANCES * WEEKLY WEEKLY MONTHLY MONTHLY QUARTERLY ANNUAL ANNUAL MISC.
1 $19 $38 $42 $83 $250 $500 $1,000 $4
2 $38 $77 $83 $167 $500 $1,000 $2,000 $8
3 $58 $115 $125 $250 $750 $1,500 $3,000 $12
4 $77 $154 $167 $333 $1,000 $2,000 $4,000 $15
5 $96 $192 $208 $417 $1,250 $2,500 $5,000 $19
6 $115 $231 $250 $500 $1,500 $3,000 $6,000 $23
7 $135 $269 $292 $583 $1,750 $3,500 $7,000 $27
8 $154 $308 $333 $667 $2,000 $4,000 $8,000 $31
9 $173 $346 $375 $750 $2,250 $4,500 $9,000 $35
10** $192 $385 $417 $833 $2,500 $5,000 $10,000 $38
*Number of Additional Withholding Allowances for Estimated Deductions claimed on Form W-4 or DE 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.
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
METHOD B---EXACT CALCULATION METHOD
TABLE 3 - STANDARD DEDUCTION TABLE
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
WEEKLY $100 $100 $200 $200
BIWEEKLY $200 $200 $400 $400
SEMI-MONTHLY $217 $217 $434 $434
MONTHLY $434 $434 $867 $867
QUARTERLY $1,301 $1,301 $2,601 $2,601
SEMI-ANNUAL $2,601 $2,601 $5,202 $5,202
ANNUAL $5,202 $5,202 $10,404 $10,404
DAILY/MISCELLANEOUS $20 $20 $40 $40
TABLE 4 - EXEMPTION ALLOWANCE TABLE
PAYROLL PERIOD
ALLOWANCES
ON DE 4 OR BI- SEMI- SEMI- DAILY/
FORM W-4 WEEKLY WEEKLY MONTHLY MONTHLY QUARTERLY ANNUAL ANNUAL MISC.
0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
1 $2.96 $5.92 $6.42 $12.83 $38.50 $77.00 $154.00 $0.59
2 $5.92 $11.85 $12.83 $25.67 $77.00 $154.00 $308.00 $1.18
3 $8.88 $17.77 $19.25 $38.50 $115.50 $231.00 $462.00 $1.78
4 $11.85 $23.69 $25.67 $51.33 $154.00 $308.00 $616.00 $2.37
5 $14.81 $29.62 $32.08 $64.17 $192.50 $385.00 $770.00 $2.96
6 $17.77 $35.54 $38.50 $77.00 $231.00 $462.00 $924.00 $3.55
7 $20.73 $41.46 $44.92 $89.83 $269.50 $539.00 $1,078.00 $4.15
8 $23.69 $47.38 $51.33 $102.67 $308.00 $616.00 $1,232.00 $4.74
9 $26.65 $53.31 $57.75 $115.50 $346.50 $693.00 $1,386.00 $5.33
10* $29.62 $59.23 $64.17 $128.33 $385.00 $770.00 $1,540.00 $5.92
* 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 W-4 or DE 4,
on a weekly payroll period would be $34.65
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
METHOD B---EXACT CALCULATION METHOD
TABLE 5 - TAX RATE TABLE
ANNUAL PAYROLL PERIOD DAILY / MISCELLANEOUS PAYROLL PERIOD
SINGLE PERSONS, DUAL INCOME MARRIED, SINGLE PERSONS, DUAL INCOME MARRIED,
OR MARRIED WITH MULTIPLE EMPLOYERS OR MARRIED WITH MULTIPLE EMPLOYERS
IF THE TAXABLE IF THE TAXABLE
INCOME IS... THE COMPUTED TAX IS... INCOME IS... THE COMPUTED TAX IS...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
$0 $10,099 ... 1.100% $0 $0.00 $0 $39 ... 1.100% $0 $0.00
$10,099 $23,942 ... 2.200% $10,099 $111.09 $39 $92 ... 2.200% $39 $0.43
$23,942 $37,788 ... 4.400% $23,942 $415.64 $92 $145 ... 4.400% $92 $1.60
$37,788 $52,455 ... 6.600% $37,788 $1,024.86 $145 $202 ... 6.600% $145 $3.93
$52,455 $66,295 ... 8.800% $52,455 $1,992.88 $202 $255 ... 8.800% $202 $7.69
$66,295 $338,639 ... 10.230% $66,295 $3,210.80 $255 $1,302 ... 10.230% $255 $12.35
$338,639 $406,364 ... 11.330% $338,639 $31,071.59 $1,302 $1,563 ... 11.330% $1,302 $119.46
$406,364 $677,275 ... 12.430% $406,364 $38,744.83 $1,563 $2,605 ... 12.430% $1,563 $149.03
$677,275 $1,000,000 ... 13.530% $677,275 $72,419.07 $2,605 $3,846 ... 13.530% $2,605 $278.55
$1,000,000 and over ... 14.630% $1,000,000 $116,083.76 $3,846 and over ... 14.630% $3,846 $446.46
MARRIED PERSONS MARRIED PERSONS
IF THE TAXABLE IF THE TAXABLE
INCOME IS... THE COMPUTED TAX IS... INCOME IS... THE COMPUTED TAX IS...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
$0 $20,198 ... 1.100% $0 $0.00 $0 $78 ... 1.100% $0 $0.00
$20,198 $47,884 ... 2.200% $20,198 $222.18 $78 $184 ... 2.200% $78 $0.86
$47,884 $75,576 ... 4.400% $47,884 $831.27 $184 $290 ... 4.400% $184 $3.19
$75,576 $104,910 ... 6.600% $75,576 $2,049.72 $290 $404 ... 6.600% $290 $7.85
$104,910 $132,590 ... 8.800% $104,910 $3,985.76 $404 $510 ... 8.800% $404 $15.37
$132,590 $677,278 ... 10.230% $132,590 $6,421.60 $510 $2,604 ... 10.230% $510 $24.70
$677,278 $812,728 ... 11.330% $677,278 $62,143.18 $2,604 $3,126 ... 11.330% $2,604 $238.92
$812,728 $1,000,000 ... 12.430% $812,728 $77,489.67 $3,126 $3,846 ... 12.430% $3,126 $298.06
$1,000,000 $1,354,550 ... 13.530% $1,000,000 $100,767.58 $3,846 $5,210 ... 13.530% $3,846 $387.56
$1,354,550 and over … 14.630% $1,354,550 $148,738.20 $5,210 and over … 14.630% $5,210 $572.11
UNMARRIED/HEAD OF HOUSEHOLD UNMARRIED/HEAD OF HOUSEHOLD
IF THE TAXABLE IF THE TAXABLE
INCOME IS... THE COMPUTED TAX IS... INCOME IS... THE COMPUTED TAX IS...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
$0 $20,212 ... 1.100% $0 $0.00 $0 $78 ... 1.100% $0 $0.00
$20,212 $47,887 ... 2.200% $20,212 $222.33 $78 $184 ... 2.200% $78 $0.86
$47,887 $61,730 ... 4.400% $47,887 $831.18 $184 $237 ... 4.400% $184 $3.19
$61,730 $76,397 ... 6.600% $61,730 $1,440.27 $237 $294 ... 6.600% $237 $5.52
$76,397 $90,240 ... 8.800% $76,397 $2,408.29 $294 $347 ... 8.800% $294 $9.28
$90,240 $460,547 ... 10.230% $90,240 $3,626.47 $347 $1,771 ... 10.230% $347 $13.94
$460,547 $552,658 ... 11.330% $460,547 $41,508.88 $1,771 $2,126 ... 11.330% $1,771 $159.62
$552,658 $921,095 ... 12.430% $552,658 $51,945.06 $2,126 $3,543 ... 12.430% $2,126 $199.84
$921,095 $1,000,000 ... 13.530% $921,095 $97,741.78 $3,543 $3,846 ... 13.530% $3,543 $375.97
$1,000,000 and over ... 14.630% $1,000,000 $108,417.63 $3,846 and over ... 14.630% $3,846 $416.97
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
METHOD B---EXACT CALCULATION METHOD
TABLE 5 - TAX RATE TABLE
QUARTERLY PAYROLL PERIOD SEMI-ANNUAL PAYROLL PERIOD
SINGLE PERSONS, DUAL INCOME MARRIED, SINGLE PERSONS, DUAL INCOME MARRIED,
OR MARRIED WITH MULTIPLE EMPLOYERS OR MARRIED WITH MULTIPLE EMPLOYERS
IF THE TAXABLE IF THE TAXABLE
INCOME IS... THE COMPUTED TAX IS... INCOME IS... THE COMPUTED TAX IS...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
$0 $2,525 ... 1.100% $0 $0.00 $0 $5,050 ... 1.100% $0 $0.00
$2,525 $5,986 ... 2.200% $2,525 $27.78 $5,050 $11,972 ... 2.200% $5,050 $55.55
$5,986 $9,447 ... 4.400% $5,986 $103.92 $11,972 $18,894 ... 4.400% $11,972 $207.83
$9,447 $13,114 ... 6.600% $9,447 $256.20 $18,894 $26,228 ... 6.600% $18,894 $512.40
$13,114 $16,574 ... 8.800% $13,114 $498.22 $26,228 $33,148 ... 8.800% $26,228 $996.44
$16,574 $84,660 ... 10.230% $16,574 $802.70 $33,148 $169,320 ... 10.230% $33,148 $1,605.40
$84,660 $101,591 ... 11.330% $84,660 $7,767.90 $169,320 $203,182 ... 11.330% $169,320 $15,535.80
$101,591 $169,319 ... 12.430% $101,591 $9,686.18 $203,182 $338,638 ... 12.430% $203,182 $19,372.36
$169,319 $250,000 ... 13.530% $169,319 $18,104.77 $338,638 $500,000 ... 13.530% $338,638 $36,209.54
$250,000 and over ... 14.630% $250,000 $29,020.91 $500,000 and over ... 14.630% $500,000 $58,041.82
MARRIED PERSONS MARRIED PERSONS
IF THE TAXABLE IF THE TAXABLE
INCOME IS... THE COMPUTED TAX IS... INCOME IS... THE COMPUTED TAX IS...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
$0 $5,050 ... 1.100% $0 $0.00 $0 $10,100 ... 1.100% $0 $0.00
$5,050 $11,972 ... 2.200% $5,050 $55.55 $10,100 $23,944 ... 2.200% $10,100 $111.10
$11,972 $18,894 ... 4.400% $11,972 $207.83 $23,944 $37,788 ... 4.400% $23,944 $415.67
$18,894 $26,228 ... 6.600% $18,894 $512.40 $37,788 $52,456 ... 6.600% $37,788 $1,024.81
$26,228 $33,148 ... 8.800% $26,228 $996.44 $52,456 $66,296 ... 8.800% $52,456 $1,992.90
$33,148 $169,320 ... 10.230% $33,148 $1,605.40 $66,296 $338,640 ... 10.230% $66,296 $3,210.82
$169,320 $203,182 ... 11.330% $169,320 $15,535.80 $338,640 $406,364 ... 11.330% $338,640 $31,071.61
$203,182 $250,000 ... 12.430% $203,182 $19,372.36 $406,364 $500,000 ... 12.430% $406,364 $38,744.74
$250,000 $338,638 ... 13.530% $250,000 $25,191.84 $500,000 $677,276 ... 13.530% $500,000 $50,383.69
$338,638 and over ... 14.630% $338,638 $37,184.56 $677,276 and over ... 14.630% $677,276 $74,369.13
UNMARRIED/HEAD OF HOUSEHOLD UNMARRIED/HEAD OF HOUSEHOLD
IF THE TAXABLE IF THE TAXABLE
INCOME IS... THE COMPUTED TAX IS... INCOME IS... THE COMPUTED TAX IS...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
$0 $5,053 ... 1.100% $0 $0.00 $0 $10,106 ... 1.100% $0 $0.00
$5,053 $11,972 ... 2.200% $5,053 $55.58 $10,106 $23,944 ... 2.200% $10,106 $111.17
$11,972 $15,433 ... 4.400% $11,972 $207.80 $23,944 $30,866 ... 4.400% $23,944 $415.61
$15,433 $19,099 ... 6.600% $15,433 $360.08 $30,866 $38,198 ... 6.600% $30,866 $720.18
$19,099 $22,560 ... 8.800% $19,099 $602.04 $38,198 $45,120 ... 8.800% $38,198 $1,204.09
$22,560 $115,137 ... 10.230% $22,560 $906.61 $45,120 $230,274 ... 10.230% $45,120 $1,813.23
$115,137 $138,165 ... 11.330% $115,137 $10,377.24 $230,274 $276,330 ... 11.330% $230,274 $20,754.48
$138,165 $230,274 ... 12.430% $138,165 $12,986.31 $276,330 $460,548 ... 12.430% $276,330 $25,972.62
$230,274 $250,000 ... 13.530% $230,274 $24,435.46 $460,548 $500,000 ... 13.530% $460,548 $48,870.92
$250,000 and over ... 14.630% $250,000 $27,104.39 $500,000 and over ... 14.630% $500,000 $54,208.78
edd.ca.gov 46 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
METHOD B---EXACT CALCULATION METHOD
TABLE 5 - TAX RATE TABLE
SEMI-MONTHLY PAYROLL PERIOD MONTHLY PAYROLL PERIOD
SINGLE PERSONS, DUAL INCOME MARRIED, SINGLE PERSONS, DUAL INCOME MARRIED,
OR MARRIED WITH MULTIPLE EMPLOYERS OR MARRIED WITH MULTIPLE EMPLOYERS
IF THE TAXABLE IF THE TAXABLE
INCOME IS... THE COMPUTED TAX IS... INCOME IS... THE COMPUTED TAX IS...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
$0 $421 ... 1.100% $0 $0.00 $0 $842 ... 1.100% $0 $0.00
$421 $998 ... 2.200% $421 $4.63 $842 $1,996 ... 2.200% $842 $9.26
$998 $1,575 ... 4.400% $998 $17.32 $1,996 $3,150 ... 4.400% $1,996 $34.65
$1,575 $2,186 ... 6.600% $1,575 $42.71 $3,150 $4,372 ... 6.600% $3,150 $85.43
$2,186 $2,762 ... 8.800% $2,186 $83.04 $4,372 $5,524 ... 8.800% $4,372 $166.08
$2,762 $14,110 ... 10.230% $2,762 $133.73 $5,524 $28,220 ... 10.230% $5,524 $267.46
$14,110 $16,932 ... 11.330% $14,110 $1,294.63 $28,220 $33,864 ... 11.330% $28,220 $2,589.26
$16,932 $28,220 ... 12.430% $16,932 $1,614.36 $33,864 $56,440 ... 12.430% $33,864 $3,228.73
$28,220 $41,667 ... 13.530% $28,220 $3,017.46 $56,440 $83,334 ... 13.530% $56,440 $6,034.93
$41,667 and over ... 14.630% $41,667 $4,836.84 $83,334 and over ... 14.630% $83,334 $9,673.69
MARRIED PERSONS MARRIED PERSONS
IF THE TAXABLE IF THE TAXABLE
INCOME IS... THE COMPUTED TAX IS... INCOME IS... THE COMPUTED TAX IS...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
$0 $842 ... 1.100% $0 $0.00 $0 $1,684 ... 1.100% $0 $0.00
$842 $1,996 ... 2.200% $842 $9.26 $1,684 $3,992 ... 2.200% $1,684 $18.52
$1,996 $3,150 ... 4.400% $1,996 $34.65 $3,992 $6,300 ... 4.400% $3,992 $69.30
$3,150 $4,372 ... 6.600% $3,150 $85.43 $6,300 $8,744 ... 6.600% $6,300 $170.85
$4,372 $5,524 ... 8.800% $4,372 $166.08 $8,744 $11,048 ... 8.800% $8,744 $332.15
$5,524 $28,220 ... 10.230% $5,524 $267.46 $11,048 $56,440 ... 10.230% $11,048 $534.90
$28,220 $33,864 ... 11.330% $28,220 $2,589.26 $56,440 $67,728 ... 11.330% $56,440 $5,178.50
$33,864 $41,667 ... 12.430% $33,864 $3,228.73 $67,728 $83,334 ... 12.430% $67,728 $6,457.43
$41,667 $56,440 ... 13.530% $41,667 $4,198.64 $83,334 $112,880 ... 13.530% $83,334 $8,397.26
$56,440 and over ... 14.630% $56,440 $6,197.43 $112,880 and over ... 14.630% $112,880 $12,394.83
UNMARRIED/HEAD OF HOUSEHOLD UNMARRIED/HEAD OF HOUSEHOLD
IF THE TAXABLE IF THE TAXABLE
INCOME IS... THE COMPUTED TAX IS... INCOME IS... THE COMPUTED TAX IS...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
$0 $842 ... 1.100% $0 $0.00 $0 $1,684 ... 1.100% $0 $0.00
$842 $1,995 ... 2.200% $842 $9.26 $1,684 $3,990 ... 2.200% $1,684 $18.52
$1,995 $2,572 ... 4.400% $1,995 $34.63 $3,990 $5,144 ... 4.400% $3,990 $69.25
$2,572 $3,183 ... 6.600% $2,572 $60.02 $5,144 $6,366 ... 6.600% $5,144 $120.03
$3,183 $3,760 ... 8.800% $3,183 $100.35 $6,366 $7,520 ... 8.800% $6,366 $200.68
$3,760 $19,189 ... 10.230% $3,760 $151.13 $7,520 $38,378 ... 10.230% $7,520 $302.23
$19,189 $23,027 ... 11.330% $19,189 $1,729.52 $38,378 $46,054 ... 11.330% $38,378 $3,459.00
$23,027 $38,379 ... 12.430% $23,027 $2,164.37 $46,054 $76,758 ... 12.430% $46,054 $4,328.69
$38,379 $41,667 ... 13.530% $38,379 $4,072.62 $76,758 $83,334 ... 13.530% $76,758 $8,145.20
$41,667 and over ... 14.630% $41,667 $4,517.49 $83,334 and over ... 14.630% $83,334 $9,034.93
edd.ca.gov 47 Taxpayer Assistance Center 1-888-745-3886
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CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
CALIFORNIA WITHHOLDING SCHEDULES FOR 2023
METHOD B---EXACT CALCULATION METHOD
TABLE 5 - TAX RATE TABLE
WEEKLY PAYROLL PERIOD BIWEEKLY PAYROLL PERIOD
SINGLE PERSONS, DUAL INCOME MARRIED, SINGLE PERSONS, DUAL INCOME MARRIED,
OR MARRIED WITH MULTIPLE EMPLOYERS OR MARRIED WITH MULTIPLE EMPLOYERS
IF THE TAXABLE IF THE TAXABLE
INCOME IS... THE COMPUTED TAX IS... INCOME IS... THE COMPUTED TAX IS...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
$0 $194 ... 1.100% $0 $0.00 $0 $388 ... 1.100% $0 $0.00
$194 $460 ... 2.200% $194 $2.13 $388 $920 ... 2.200% $388 $4.27
$460 $727 ... 4.400% $460 $7.98 $920 $1,454 ... 4.400% $920 $15.97
$727 $1,009 ... 6.600% $727 $19.73 $1,454 $2,018 ... 6.600% $1,454 $39.47
$1,009 $1,275 ... 8.800% $1,009 $38.34 $2,018 $2,550 ... 8.800% $2,018 $76.69
$1,275 $6,512 ... 10.230% $1,275 $61.75 $2,550 $13,024 ... 10.230% $2,550 $123.51
$6,512 $7,815 ... 11.330% $6,512 $597.50 $13,024 $15,630 ... 11.330% $13,024 $1,195.00
$7,815 $13,025 ... 12.430% $7,815 $745.13 $15,630 $26,050 ... 12.430% $15,630 $1,490.26
$13,025 $19,231 ... 13.530% $13,025 $1,392.73 $26,050 $38,462 ... 13.530% $26,050 $2,785.47
$19,231 and over ... 14.630% $19,231 $2,232.40 $38,462 and over ... 14.630% $38,462 $4,464.81
MARRIED PERSONS MARRIED PERSONS
IF THE TAXABLE IF THE TAXABLE
INCOME IS... THE COMPUTED TAX IS... INCOME IS... THE COMPUTED TAX IS...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
$0 $388 ... 1.100% $0 $0.00 $0 $776 ... 1.100% $0 $0.00
$388 $920 ... 2.200% $388 $4.27 $776 $1,840 ... 2.200% $776 $8.54
$920 $1,454 ... 4.400% $920 $15.97 $1,840 $2,908 ... 4.400% $1,840 $31.95
$1,454 $2,018 ... 6.600% $1,454 $39.47 $2,908 $4,036 ... 6.600% $2,908 $78.94
$2,018 $2,550 ... 8.800% $2,018 $76.69 $4,036 $5,100 ... 8.800% $4,036 $153.39
$2,550 $13,024 ... 10.230% $2,550 $123.51 $5,100 $26,048 ... 10.230% $5,100 $247.02
$13,024 $15,630 ... 11.330% $13,024 $1,195.00 $26,048 $31,260 ... 11.330% $26,048 $2,390.00
$15,630 $19,231 ... 12.430% $15,630 $1,490.26 $31,260 $38,462 ... 12.430% $31,260 $2,980.52
$19,231 $26,049 ... 13.530% $19,231 $1,937.86 $38,462 $52,098 ... 13.530% $38,462 $3,875.73
$26,049 and over ... 14.630% $26,049 $2,860.34 $52,098 and over ... 14.630% $52,098 $5,720.68
UNMARRIED/HEAD OF HOUSEHOLD UNMARRIED/HEAD OF HOUSEHOLD
IF THE TAXABLE IF THE TAXABLE
INCOME IS... THE COMPUTED TAX IS... INCOME IS... THE COMPUTED TAX IS...
OVER BUT NOT OF AMOUNT PLUS OVER BUT NOT OF AMOUNT PLUS
OVER OVER... OVER OVER...
$0 $389 ... 1.100% $0 $0.00 $0 $778 ... 1.100% $0 $0.00
$389 $921 ... 2.200% $389 $4.28 $778 $1,842 ... 2.200% $778 $8.56
$921 $1,187 ... 4.400% $921 $15.98 $1,842 $2,374 ... 4.400% $1,842 $31.97
$1,187 $1,469 ... 6.600% $1,187 $27.68 $2,374 $2,938 ... 6.600% $2,374 $55.38
$1,469 $1,735 ... 8.800% $1,469 $46.29 $2,938 $3,470 ... 8.800% $2,938 $92.60
$1,735 $8,857 ... 10.230% $1,735 $69.70 $3,470 $17,714 ... 10.230% $3,470 $139.42
$8,857 $10,628 ... 11.330% $8,857 $798.28 $17,714 $21,256 ... 11.330% $17,714 $1,596.58
$10,628 $17,713 ... 12.430% $10,628 $998.93 $21,256 $35,426 ... 12.430% $21,256 $1,997.89
$17,713 $19,231 ... 13.530% $17,713 $1,879.60 $35,426 $38,462 ... 13.530% $35,426 $3,759.22
$19,231 and over ... 14.630% $19,231 $2,084.99 $38,462 and over ... 14.630% $38,462 $4,169.99
edd.ca.gov 48 Taxpayer Assistance Center 1-888-745-3886
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E-FILE AND E-PAY MANDATE
All employers are required to electronically submit their employment tax returns, wage reports and payroll tax
deposits to the EDD.
Benefits of Electronic Filing and Payment
• Increases data accuracy.
• Protects data through encryption.
• Reduces paper and mailing cost.
• Eliminates lost mail.
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)
Note: Filing a paper return to indicate that no wages were paid will result in a noncompliance penalty of $50.00.
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. Mandate waiver requests cannot be filed
retroactively. You will receive an approval or denial letter from the EDD by mail. The approval letter will indicate
the approval period. Upon the expiration of the approval period, you must start to electronically file and pay.
If you are still unable to electronically file and pay, you must submit a new waiver request to avoid any non-
compliance penalties. For more information, visit e-file and e-pay mandate and related noncompliance penalties
(edd.ca.gov/EfileMandate). You can download the E-file and E-pay Mandate Waiver Request (DE 1245W)
(PDF) (edd.ca.gov/pdf_pub_ctr/de1245w.pdf) or contact the Taxpayer Assistance Center at 1-888-745-3886.
Enroll in e-Services for Business
(edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm)
to help you meet the requirements
of the e-file and e-pay mandate.
Fast, easy, and secure!
edd.ca.gov 49 Taxpayer Assistance Center 1-888-745-3886
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ONLINE SERVICES
e-Services for Business
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.*
Enroll in e-Services for Business
(edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm).
Fast, easy, and secure!
Features:
• Register, close, or re-open an employer payroll tax account.
• File, adjust, and print tax returns and wage reports.
• Make payments.
• View and update business name, address, and more.
• Protest Unemployment Insurance (UI) benefit charges or UI rates.
• Authorize a power of attorney.
• Report new employees or independent contractors.
• Request a transfer of a reserve account.
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 may
be accessed 24 hours a day, 7 days a week.
Additional e-Services for Business Information
Tutorials on how to: Answers to frequently asked questions about:
• Enroll for a username and password. • Accessing an employer payroll tax account.
• Register for an employer payroll tax account • Registering, closing, or reopening an account.
number. • Filing forms and making payments.
• File an employment tax return/wage report. • Filing benefit charge and rate protests.
• Make a payroll tax deposit. • And more.
• And more.
Visit e-Services for Business Tutorials Frequently Asked Questions
(edd.ca.gov/payroll_taxes/ (edd.ca.gov/payroll_taxes/
e-Services_for_Business_tutorials.htm) for more! FAQ_-_e-Services_for_Business.htm).
edd.ca.gov 50 Taxpayer Assistance Center 1-888-745-3886
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ONLINE SERVICES (cont.)
Express Pay
Employers and employer representatives/payroll agents can make electronic tax payments without having to
register with the EDD. 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 File and Pay (edd.ca.gov/Payroll_Taxes/File_
and_Pay.htm) 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) (PDF) (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.
Frequently Asked Questions
For answers to frequently asked questions (FAQs) regarding our electronic services, such as filing returns and
reports, making payments, bulk transfer options, and more, visit FAQs for e-Services for Business (edd.ca.gov/
Payroll_Taxes/FAQ_-_e-Services_for_Business.htm).
For more information regarding e-Services for Business (edd.ca.gov/payroll_taxes/e-Services_for_Business.htm)
contact the Taxpayer Assistance Center at 1-888-745-3886.
For the latest tax news and employer resources, visit
California Employer News and Updates
(edd.ca.gov/payroll_taxes/employer-news.htm).
Subscribe to the EDD no-fee email subscription services
(edd.ca.gov/about_edd/get_email_notices.htm).
To request an annual mailing of the California Employer’s Guide (DE 44), visit
Employer’s Guide Mailing Preference
(eddservices.edd.ca.gov/tap/open/annualguide/_/#1)
edd.ca.gov 51 Taxpayer Assistance Center 1-888-745-3886
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REQUIRED FORMS
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 (UI), Disability Insurance (DI), and Paid Family
Leave (PFL) 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. Refer to page 49 for the information on
the e-file and e-pay mandate and related noncompliance penalties.
The required reporting forms are:
• Report of New Employee(s) (DE 34)
• Report of Independent Contractor(s) (DE 542)
• Payroll Tax Deposit (DE 88)
• Quarterly Contribution Return and Report of Wages (DE 9)
• Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C)
For the latest tax news and employer resources, visit
California Employer News and Updates
(edd.ca.gov/payroll_taxes/employer-news.htm).
Subscribe to the EDD no-fee email subscription services
(edd.ca.gov/about_edd/get_email_notices.htm).
To request an annual mailing of the California Employer’s Guide (DE 44), visit
Employer’s Guide Mailing Preference
(eddservices.edd.ca.gov/tap/open/annualguide/_/#1)
edd.ca.gov 52 Taxpayer Assistance Center 1-888-745-3886
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REPORT OF NEW EMPLOYEE(S) (DE 34)
OVERVIEW
All employers are required by law to report all newly hired or rehired employees to the New Employee
Registry (NER) within 20 days of their start-of-work date, which is the first day services were performed for
wages.
• Newly Hired employees are those individuals who have not previously been included on your payroll.
• Rehired employees are those individuals who were previously included on your payroll, left your
employment, and were rehired after a separation of at least 60 consecutive days.
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.
Filing Options for Reporting New or Rehired Employees:
1. File through e-Services for Business (edd.ca.gov/payroll_taxes/e-Services_for_Business.htm). It’s fast, easy,
and secure.
2. Download the Report of New Employee(s) (DE 34) (PDF) (edd.ca.gov/pdf_pub_ctr/de34.pdf).
3. Order DE 34 forms using the EDD online order form (forms.edd.ca.gov/forms).
You must report all newly hired or rehired employees within 20 days of the start-of-work date. If an employee
returns to work after a layoff or leave of absence and is required to complete a new IRS Employee’s Withholding
Certificate (Form W-4) and state Employee Withholding Allowance Certificate (DE 4), you must report the employee
as a new hire. If the returning employee had been separated or removed from payroll records for at least 60
consecutive days, then you need to report the employee as a rehire.
Include the following information when reporting new or rehired employees:
Employer Information Employee Information
• EDD eight-digit employer payroll tax account • First name, middle initial, and last name.
number. • 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 DE 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/payroll_taxes/e-Services_for_Business.htm). 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)
(PDF) (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.
edd.ca.gov 53 Taxpayer Assistance Center 1-888-745-3886
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FOR ILLUSTRATIVE PURPOSES ONLY
REPORT OF NEW EMPLOYEE(S)
NOTE: Failure to provide all of the information below may result in
this form being rejected and/or a penalty being assessed.
00340600
DATE CA EMPLOYER ACCOUNT NUMBER BRANCH CODE FEDERAL ID NUMBER
030423 M M D D Y Y 00000000 xxxxxxxxx
BUSINESS NAME CONTACT PERSON PHONE NUMBER
EMPLOYER CITY STORE JANE SMITH 123-555-7789
ADDRESS STREET CITY STATE ZIP CODE
PO BOX 12345 ANYTOWN CA 12345
EMPLOYEE FIRST NAME MI EMPLOYEE LAST NAME
E MILLER
SOCIAL SECURITY NUMBER STREET NUMBER STREET NAME UNIT/APT
CEDAR STREET
CITY STATE ZIP CODE START-OF-WORK DATE
M 022522M D D Y Y
CA 12345
e-Services for Business
(edd.ca.gov/payroll_taxes/e-Services_for_
EMPLOYEE FIRST NAME MI EMPLOYEE LAST NAME
Business.htm).
SOCIAL SECURITY NUMBER STREET NUMBER STREET NAME UNIT/APT
CITY STATE ZIP CODE START-OF-WORK DATE
M M D D Y Y
EMPLOYEE FIRST NAME MI EMPLOYEE LAST NAME
SOCIAL SECURITY NUMBER STREET NUMBER STREET NAME UNIT/APT
CITY STATE ZIP CODE START-OF-WORK DATE
M M D D Y Y
EMPLOYEE FIRST NAME MI EMPLOYEE LAST NAME
SOCIAL SECURITY NUMBER STREET NUMBER STREET NAME UNIT/APT
CITY STATE ZIP CODE START-OF-WORK DATE
M M D D Y Y
EMPLOYEE FIRST NAME MI EMPLOYEE LAST NAME
SOCIAL SECURITY NUMBER STREET NUMBER STREET NAME UNIT/APT
CITY STATE ZIP CODE START-OF-WORK DATE
M M D D Y Y
EMPLOYEE FIRST NAME MI EMPLOYEE LAST NAME
SOCIAL SECURITY NUMBER STREET NUMBER STREET NAME UNIT/APT
CITY STATE ZIP CODE START-OF-WORK DATE
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
edd.ca.gov 54 Taxpayer Assistance Center 1-888-745-3886
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REPORT OF INDEPENDENT CONTRACTOR(S) (DE 542)
Overview
Any business or government entity that is required to file the federal Forms 1099-MISC or 1099-NEC for personal
services performed must also report specific information to the Employment Development Department (EDD)
regarding any independent contractor providing services to you or your business. The Independent Contractor
Reporting (ICR) information assists California’s Department of Child Support Services and Department of Justice
in locating parents for the purpose of collecting delinquent child support payments. An independent contractor is an
individual who is not an employee under the ABC test or statutory employee of a business and/or government entity
for California purposes and who receives compensation for, or executes a contract for, services performed for a
business and/or government entity, either in or outside of California.
Filing Options for Reporting Independent Contractors:
1. File through e-Services for Business (edd.ca.gov/payroll_taxes/e-Services_for_Business.htm). It’s fast, easy,
and secure.
2. Download the Report of Independent Contractor(s) DE 542 (PDF) (edd.ca.gov/pdf_pub_ctr/de542.pdf).
3. Order DE 542 forms using the EDD online order form (edd.ca.gov/forms).
Important Due Dates: Independent contractor information must be reported to the EDD within 20 days of EITHER
making payments totaling $600 or more, OR entering into a contract for $600 or more with an independent contractor
in any calendar year, whichever occurs first. This is in addition to your requirement to report the total annual
payments to the Internal Revenue Service on the Forms 1099-MISC or 1099-NEC after the close of the calendar
year.
Include the following information when reporting independent contractors:
Business or Government Entity Independent Contractor
(Service-Recipient) Information (Service-Provider) Information
• Federal employer identification number (FEIN). • First name, middle initial, and last name (do not
use company name).
• EDD eight-digit employer payroll tax account
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/Payroll_Taxes/e-Services_for_Business.
htm). 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)
(PDF) (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.
edd.ca.gov 55 Taxpayer Assistance Center 1-888-745-3886
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FOR ILLUSTRATIVE PURPOSES ONLY
REPORT OF
INDEPENDENT CONTRACTOR(S)
See detailed instructions on reverse side. Please type or print. 05420101
SERVICE-RECIPIENT (BUSINESS OR GOVERNMENT ENTITY):
DATE FEDERAL ID NUMBER CA EMPLOYER ACCOUNT NUMBER SOCIAL SECURITY NUMBER
031423 XXXXXXXXX 00000000 XXXXXXXX
SERVICE-RECIPIENT NAME / BUSINESS NAME CONTACT PERSON
EMPLOYER CITY STORE JANE SMITH
ADDRESS PHONE NUMBER
123 555-7899
CITYe-Services for Business STATE ZIP CODE
(edd.ca.gov/payroll_taxes/e-Services_for_
CA 12345
Business.htm).
SERVICE-PROVIDER (INDEPENDENT CONTRACTOR):
FIRST NAME MI LAST NAME
HENRY A KENNEDY
SOCIAL SECURITY NUMBER STREET NUMBER STREET NAME UNIT/APT
000000000 2954 HILLCREST DRIVE
CITY STATE ZIP CODE
ANYCITY CA 12345
START DATE OF CONTRACT AMOUNT OF CONTRACT CONTRACT EXPIRATION DATE CHECK HERE IF CONTRACT IS ONGOING
030422M M D D Y Y 1000.00 , , . 063022M M D D Y Y
FIRST NAME MI LAST NAME
SOCIAL SECURITY NUMBER STREET NUMBER STREET NAME UNIT/APT
CITY STATE ZIP CODE
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
FIRST NAME MI LAST NAME
SOCIAL SECURITY NUMBER STREET NUMBER STREET NAME UNIT/APT
CITY STATE ZIP CODE
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
DE 542 Rev. 9 (6-17) (INTERNET) Page 1 of 2
edd.ca.gov 56 Taxpayer Assistance Center 1-888-745-3886
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PAYROLL TAX DEPOSIT (DE 88)
Overview
The Payroll Tax Deposit (DE 88) is used to report and pay Unemployment Insurance (UI) tax, Employment Training
Tax (ETT), State Disability Insurance (SDI) tax withholding, and Personal Income Tax (PIT) withholding to the
Employment Development Department (EDD). Employers can enroll and use e-Services for Business to make
deposits.
e-Services for Business. Fast, easy and secure!
Electronic Filing with e-Services for Business:
• All employers must electronically submit payroll tax deposits. Refer to page 49 for
additional information on the e-file and e-pay mandate and related noncompliance penalties.
• Fulfills the e-file and e-pay mandate.
• Fast, easy, and secure way to manage your payroll taxes online.
• Available 24 hours a day, 7 days a week.
• Employer representatives or payroll agents can manage their clients’ payroll tax accounts by enrolling in
e-Services for Business as a Representative/Agent.
• For additional e-Services for Business features, refer to page 50.
Enroll and file through e-Services for Business (edd.ca.gov/payroll_taxes/e-Services_for_Business.htm) today.
Important Due Dates:
• 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 your e-Services for Business account.
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.
edd.ca.gov 57 Taxpayer Assistance Center 1-888-745-3886
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PAYROLL TAX DEPOSIT (DE 88) (cont.)
Withholding Deposits
All employers must electronically submit payroll tax deposits to the EDD. Refer to page 49 for information on the
e-file and e-pay mandate and related noncompliance penalties. Employers can enroll and use e-Services for Business
(edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm) to submit a Payroll Tax Deposit (DE 88) electronically.
Although employer contributions of Unemployment Insurance (UI) and Employment Training Tax (ETT) are due
quarterly, withholdings from employee wages for State Disability Insurance (SDI) and Personal Income Tax
(PIT) may need to be deposited more often. The SDI and PIT deposit due dates are based on each employer’s
federal deposit schedule/requirement and the amount of accumulated PIT the employer has withheld. Details
are provided below and in the table on page 59. For information on federal deposit schedules, download the IRS
Employer’s Tax Guide (Publication 15, Circular E) at IRS (irs.gov) or contact the IRS at 1-800-829-3676.
A penalty of 15 percent plus interest will be charged on late payroll tax payments.
CALIFORNIA DEPOSIT REQUIREMENTS
California
Deposit Requirement Definition
Schedule
Next-Day You are required to make next-day SDI and PIT deposits if you are required to make federal next-
day deposits and you accumulate more than $500* in California PIT during one or more payroll
periods. If you accumulate $350 to $500* in PIT during one or more pay periods, refer to
monthly requirements below.
The next-day deposit schedule requires deposits to be made by the next business day. Business
days do not include Saturdays, Sundays, or federal holidays.
Semiweekly You are required to make semiweekly SDI and PIT deposits if you are required to make federal
semiweekly deposits and you accumulate more than $500* in California PIT during one or more
payroll periods. If you accumulate $350 to $500* in PIT during one or more pay periods, refer
to monthly requirements below.
The semiweekly deposit schedule requires deposits for paydays on Wednesday, Thursday, and
Friday to be made by the following Wednesday. For paydays on Saturday, Sunday, Monday, or
Tuesday, deposits must be made by the following Friday.
Semiweekly depositors always have three business days after the end of the semiweekly period to
make a deposit. If any of the three business days after the end of the semiweekly period is a legal
holiday, you will have an additional business day to make your deposit.
Monthly You are required to make monthly SDI and PIT deposits if you are required to make federal
annual, quarterly, or monthly deposits and you accumulate $350 or more in California PIT during
one or more months of a quarter.
Monthly deposits are due by the 15 thday of the following month. If the 15 this a Saturday, Sunday,
or federal holiday, the last timely date would be the next business day.
You are required to make monthly SDI and PIT deposits if you are required to make federal
semiweekly or next-day deposits and you accumulate $350 to $500* in California PIT during
one or more months of a quarter.
Quarterly Quarterly tax payments are due and delinquent on the same dates as the Quarterly Contribution
Return and Report of Wages (Continuation) (DE 9C). Refer to the monthly deposit schedule if you are
a quarterly depositor but accumulate $350 or more in California PIT during one or more months of the
quarter.
Employer contributions for UI and ETT are due quarterly. However, they may be submitted more
often with any required SDI and PIT deposits.
*California PIT deposit threshold may be adjusted annually. Please refer to the California Deposit Requirements
on page 6.
edd.ca.gov 58 Taxpayer Assistance Center 1-888-745-3886
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PAYROLL TAX DEPOSIT (DE 88) (cont.)
Due Dates for Quarterly Tax Deposits
Using Electronic Funds Transfer
Electronic Funds Transfer (EFT) transactions, regardless of the method of transmission (e-Services for Business,
vendor, or Federal/State Employment Taxes program), for quarterly Unemployment Insurance (UI) tax, Employment
Training Tax (ETT), State Disability Insurance (SDI) Tax, and Personal Income Tax (PIT) withholding payments must
settle in the state’s bank account on or before the timely settlement date. Refer to the last column in the table below
for specific settlement dates.
2023 Quarterly Payment Table
Reporting Period Taxes Due Last Timely Date Timely Settlement
(initiate on or before) Date
January, February, March April 1, 2023 May 1, 2023 May 2, 2023
April, May, June July 1, 2023 July 31, 2023 August 1, 2023
July, August, September October 1, 2023 October 31, 2023 November 1, 2023
October, November, December January 1, 2024 January 31, 2024 February 1, 2024
To ensure timely settlement of your electronic payments, please note:
• EFT Automated Clearing House (ACH) debit transactions must be completed before 3 p.m., Pacific Time,
on or before the last timely date to ensure a timely settlement date.
• The EFT ACH credit transactions are processed based on individual bank requirements. Ask your bank what
day you should report your payment to ensure a timely settlement date.
Using a Payroll Tax Deposit (DE 88) Coupon
All employers must electronically submit 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. Employers who have an approved e-file and
e-pay mandate waiver can mail your tax payments with a DE 88 to the EDD. A penalty of 15 percent plus interest
will be charged on late payroll tax payments. The filing due dates and delinquency dates for 2023 quarterly payroll
tax deposits are:
Reporting Period Filing Due Date Delinquent if Not Paid By
January, February, March April 1, 2023 May 1, 2023
April, May, June July 1, 2023 July 31, 2023
July, August, September October 1, 2023 October 31, 2023
October, November, December January 1, 2024 January 31, 2024
Late Deposit, Penalty, and Interest
When tax payments are remitted electronically, the settlement date is used to determine timeliness. When your tax
payments are mailed to the EDD, the postmark date is used to determine timeliness. If the last timely filing date falls
on a Saturday, Sunday, or federal holiday, the next business day is considered to be the last timely date. A penalty
of 15 percent plus interest will be charged on late payroll tax payments. The interest rate is reestablished every
six months. Refer to the interest table (edd.ca.gov/payroll_taxes/interest_rate.htm).
Note: If you do not make timely payments, you will receive a Statement of Account (DE 2176) that provides details
of the delinquent balance due. If the delinquency is not paid, a State Tax Lien may be issued. If a State Tax Lien is
issued, it will be recorded at the county recorder’s office and the Secretary of State. Tax lien information is a matter of
public record after it is recorded.
Penalty for Failure to Deposit Payroll Taxes
Employers are required to withhold payroll taxes and send them to the EDD. Any person or employer who fails to do
this, even by mistake, can be charged with a misdemeanor. If convicted, the person or employer can be fined up to
$1,000 or sentenced to jail for up to one year, or both, at the discretion of the court.
edd.ca.gov 59 Taxpayer Assistance Center 1-888-745-3886
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PAYROLL TAX DEPOSIT (DE 88) (cont.)
Correcting Previously Submitted Payroll Tax Deposit (DE 88)
Payroll tax deposits can be corrected online through e-Services for Business (edd.ca.gov/payroll_taxes/e-Services_
for_Business.htm) even if the deposit was made using another electronic payment method or a paper DE 88 coupon.
The following tables clarify when and how to notify the EDD of adjustments to payroll tax deposits.
Reason for Adjustment How to Make an Adjustment Form to Use
Overpaid UI, ETT, SDI, and/or PIT on On the next DE 88 for the same DE 88 (DO NOT use a
a DE 88 prior to filing your Quarterly calendar quarter, reduce the amount Quarterly Contribution and
Contribution Return and Report of of taxes due by the amount of the Wage Adjustment Form [DE
Wages (DE 9) for the quarter. overpayment. Do not show credits on 9ADJ])
the DE 88.
Overpaid UI, ETT, SDI, and/or PIT on Claim the amount overpaid on Line J File DE 9 at the end of the
a DE 88 prior to filing your DE 9 for the when you file your DE 9 for the quarter. quarter. (DO NOT use a
quarter, and you cannot reduce the 9ADJ.)
overpayment on your next deposit within
the quarter.
Overwithheld PIT and: Do not refund PIT withholding to None
•
• DE 9 was filed. the employee.
• DE 9C was filed. • Do not change the California PIT
• Wage and Tax Statement (Form withholding amount shown on the
W-2) was issued to the employee. Form W-2.
• Do not file a claim for refund with
the EDD.
The employee will receive a credit
for the PIT withholding when filing a
California state income tax return with
the Franchise Tax Board (FTB).
Underpaid UI, ETT, SDI, and/or PIT Submit a DE 88 to pay the additional DE 88 (DO NOT use a
prior to filing your DE 9 for the amount due, including penalty and DE 9ADJ.)
quarter. interest. Indicate the payroll date on the
DE 88.
The penalty amount is 15% of the portion
of the payment that is late (penalty is 10%
for periods prior to 3rd quarter 2014).
Underpaid UI, ETT, SDI, and/or PIT Submit a DE 88 for the additional Complete the DE 9ADJ,
information and your DE 9 was filed. amount due for the quarter, including Sections I, II, III, and V, with
any penalty and interest, or pay the the correct information.
balance due when you receive a
Statement of Account (DE 2176) in the
mail.
The penalty amount is 15% of the
portion of the payment that is late.
Allocated the wrong amounts to specific Do Not Adjust: The EDD will make the No form required.
funds on a DE 88. necessary adjustments at the end of the
quarter when your DE 9 is filed.
Refer to the Instructions for Completing the Quarterly Contribution and Wage Adjustment Form (DE 9ADJ-I)
(edd.ca.gov/siteassets/files/pdf_pub_ctr/de9adji.pdf) or page 65 for additional information and samples.
edd.ca.gov 60 Taxpayer Assistance Center 1-888-745-3886
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PAYROLL TAX DEPOSIT (DE 88) (cont.)
Correcting Payroll Tax Deposits (cont.)
Note: All employers must electronically submit payroll tax deposits to the Employment Development Department
(EDD). Refer to page 49 for additional information on the e-file and e-pay mandate and related noncompliance
penalties.
Upon receiving written permission from an employee, you are authorized to adjust any over or underwithholding
of California PIT from the employee if the adjustment is made within the same calendar year and before the IRS
Form W-2 is issued. You should obtain a receipt from the employee whenever a credit adjustment or repayment of
overwithheld tax is made.
Overwithheld SDI and/or California PIT must be credited or refunded to your employee before you can take a credit
or receive a refund from the EDD. This overpayment can be adjusted in one of the following ways:
• If you have issued an IRS Form W-2 to the employee, you cannot adjust any overwithholding of PIT reported.
The employee will receive credit for any overwithholding when he/she files a California state income tax return
with the Franchise Tax Board.
• If you have issued the IRS Form W-2 showing the wrong amount, you must issue an IRS Corrected Wage and
Tax Statement (Form W-2C) to the employee. Do not send the state copy of the IRS Form W-2C to the EDD
or the FTB.
Note: A claim for credit or refund must be filed within three years of the delinquent date for the quarter being adjusted.
For the latest tax news and employer resources, visit
California Employer News and Updates
(edd.ca.gov/payroll_taxes/employer-news.htm).
Subscribe to the EDD no-fee email subscription services
(edd.ca.gov/about_edd/get_email_notices.htm).
edd.ca.gov 61 Taxpayer Assistance Center 1-888-745-3886
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QUARTERLY CONTRIBUTION RETURN AND REPORT OF WAGES (DE 9)
Overview
Employers use the Quarterly Contribution Return and Report of Wages (DE 9) to reconcile payroll tax payments and
total subject wages reported for the quarter. You must electronically file a DE 9 and a Quarterly Contribution
Return and Report of Wages (Continuation) (DE 9C) each quarter. As an active employer, you must file a
DE 9 each quarter even if you paid no wages during the quarter. Your DE 9 should indicate that no wages
were paid for the quarter. If you no longer have employees or you are no longer in business, refer to page 70 for
filing instructions. Effective January 1, 2019, filing a paper return to indicate that no wages were paid will result in a
noncompliance penalty of $50. If you need to report wages after your account has been inactivated/ceased, you must
reactivate the account and file the return and wage report electronically.
2023 Due Dates for the Quarterly Contribution Return and Report of Wages (DE 9)
Report Covering Due Date Delinquent if Not Filed By
January, February, March April 1, 2023 May 1, 2023
April, May, June July 1, 2023 July 31, 2023
July, August, September October 1, 2023 October 31, 2023
October, November, December January 1, 2024 January 31, 2024
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.
Note: For reporting purposes, wages are taxable when paid, when constructively paid, or when an employee
receives payment other than cash
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.
• If your reports are filed late or you do not make timely payments, you will receive a Statement of Account (DE
2176) that provides details of the delinquent balance due. If the delinquency is not paid, a State Tax Lien may
be issued. If a State Tax Lien is issued, it will be recorded at the county recorder’s office and the Secretary of
State. A Notice of State Tax Lien information is a matter of public record after it is recorded.
• A penalty of $50 plus interest will be charged for filing a paper tax return. For more information, visit e-file
and e-pay mandate for employers (edd.ca.gov/EfileMandate) or refer to page 49.
Correcting a Previously Filed DE 9
If you made an error on a DE 9, you can make a correction as follows:
Online:
Log in to e-Services for Business (edd.ca.gov/payroll_taxes/e-Services_for_Business.htm) and access the
previously filed DE 9 you want to correct. For step-by-step instructions, access the e-Services for Business
User Guide (DE160) (PDF) (edd.ca.gov/pdf_pub_ctr/de160.pdf) and tutorials.
Paper:
Complete and mail the Quarterly Contribution and Wage Adjustment Form (DE 9ADJ). Refer to pages 65 and
66 for additional information and a sample DE 9ADJ form.
edd.ca.gov 62 Taxpayer Assistance Center 1-888-745-3886
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QUARTERLY CONTRIBUTION RETURN AND REPORT OF WAGES (CONTINUATION) (DE 9C)
Overview
Employers use the Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C) to report employee
wages subject to Unemployment Insurance (UI) tax, Employment Training Tax (ETT), State Disability Insurance
(SDI) tax, and to report Personal Income Tax (PIT) wages and PIT withheld. As an active employer, you must
electronically file a DE 9C each quarter even if you paid no wages during the quarter indicating you do not
have the payroll to report. If you no longer have employees or you are no longer in business, refer to page 70 for
filing instructions. If you need to report wages after your account has been inactivated/ceased, you must reactivate
the account and file the return and wage report electronically.
2023 Due Dates for the DE 9C
Report Covering Due Date Delinquent if Not Filed By
January, February, March April 1, 2023 May 1, 2023
April, May, June July 1, 2023 July 31, 2023
July, August, September October 1, 2023 October 31, 2023
October, November, December January 1, 2024 January 31, 2024
Penalty and interest will be charged on late reports. If the due date falls on a Saturday, Sunday, or federal holiday,
the due date is extended to the next business day.
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.
Important:
• Wages are reported when they are paid to the employee, not when the employee earns the wages. Because
UI and SDI benefits are based on the highest quarter of wages, it is important that wages are reported for
the correct quarter. If you have any questions on reporting your employees’ wages, contact the Taxpayer
Assistance Center at 1-888-745-3886.
• All employers are required to 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.
• A wage item penalty of $20 per employee will be charged for late reporting or unreported employee wages.
• A noncompliance penalty of $20 per employee will be charged for filing a paper wage report.
• Before submitting your DE 9C, make sure the following are correct:
○ The quarter you are reporting.
○ Your employer payroll tax account number.
○ The names of your employees, and their Social Security numbers.
edd.ca.gov 63 Taxpayer Assistance Center 1-888-745-3886
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QUARTERLY CONTRIBUTION RETURN AND REPORT OF WAGES (CONTINUATION) (DE 9C)
(cont.)
Correcting a Previously Filed DE 9C
The DE 9C can be corrected through e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.
htm) even if originally filed using another electronic filing method or a paper form.
Online:
Log in to e-Services for Business (edd.ca.gov/payroll_taxes/e-Services_for_Business.htm) and access the
previously filed DE 9C you want to correct. For step-by-step instructions, access the e-Services for Business
User Guide (DE 160) (PDF) (edd.ca.gov/pdf_pub_ctr/de160.pdf) and tutorials.
Paper:
Complete and mail a DE 9ADJ. Refer to pages 65 and 66 for additional information and a DE 9ADJ sample form.
edd.ca.gov 64 Taxpayer Assistance Center 1-888-745-3886
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QUARTERLY CONTRIBUTION AND WAGE ADJUSTMENT FORM (DE 9ADJ)
Overview
Employers use the Quarterly Contribution and Wage Adjustment Form (DE 9ADJ) to make corrections to previous tax
returns and wage reports. Corrections may also be made electronically through e-Services for Business
(edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm).
Reason for
Form How to Make an Adjustment
Adjustment
Correcting previously Incorrect UI, ETT, File a DE 9ADJ. Complete Sections I, II, III, V with the correct
filed Quarterly SDI, and/ information. Also, complete Section IV (items A and C) of the
Contribution Return or PIT information DE 9ADJ if a correction is needed to the DE 9C for the quarter.
and Report of Wages reported.
(DE 9) Note: If taxes are due, send a payment for the additional tax amount
due plus penalty and interest, if any, with the DE 9ADJ.
Correcting previously Incorrect employee File a DE 9ADJ. Complete Sections I, II, IV (items A and C), and V.
filed Quarterly Social Security Refer to pages 3 through 5 of the Instructions for Completing the
Contribution Return number (SSN) Quarterly Contribution and Wage Adjustment Form (DE 9ADJ-I) and
and Report of Wages and/or name examples 5-7 of wage line adjustments.
(Continuation) (DE 9C) reported.
Incorrect wages File a DE 9ADJ. Complete Sections I, II, IV (items A and C), and V.
and/or PIT Refer to page 3 through 5 of the DE 9ADJ-I for detailed instructions
information and examples 3 and 4 of wage line adjustments.
for employees
previously Note: If DE 9 has been filed with incorrect information, also complete
reported. Section III.
No SSN reported File a DE 9ADJ. Complete Sections I, II, IV (items A and C) and V.
for employee. Refer to pages 3 through 5 of the DE 9ADJ-I for detailed instructions
and example 8 of wage line adjustments.
Employee(s) File a DE 9ADJ. Complete Sections I, II, IV (items A and C) and V.
not previously Refer to pages 3 through 5 of the DE 9ADJ-I for detailed instructions
reported. and example 2 of wage line adjustments.
Note: If a DE 9 has been filed with incorrect information, also
complete Section III. If taxes are due, send a payment for the
additional tax amount plus penalty and interest, if any, with the DE
9ADJ.
Incorrect wage File a DE 9ADJ. Complete Sections I, II, IV (items A and B, or items
plan code(s) A and C) and V. Refer to pages 3 through 5 of the DE 9ADJ-I for
previously detailed instructions and examples 1 and 9 of wage line adjustments.
reported.
Detailed DE 9ADJ instructions are provided on the DE 9ADJ-I (PDF) (edd.ca.gov/pdf_pub_ctr/de9adji.pdf) or contact
the Taxpayer Assistance Center at 1-888-745-3886 for additional assistance.
A completed sample DE 9ADJ is shown on pages 66 and 67.
For the latest tax news and employer resources, visit
California Employer News and Updates
(edd.ca.gov/payroll_taxes/employer-news.htm).
Subscribe to the EDD no-fee email subscription services
(edd.ca.gov/about_edd/get_email_notices.htm).
edd.ca.gov 65 Taxpayer Assistance Center 1-888-745-3886
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FOR ILLUSTRATIVE PURPOSES ONLY
Examples were created using 2022 rates.
Refer to inside front cover for 2023 rates.
Quarterly Contribution and Wage
Adjustment Form
The Quarterly Contribution and Wage Adjustment Form (DE 9ADJ) is used to request corrections to information previously
reported on a Quarterly Contribution Return and Report of Wages (DE 9) and/or Quarterly Contribution Return and Report of
Wages (Continuation) (DE 9C). A claim for refund must be filed within 3 years of the last timely date of the quarter being
adjusted, 6 months after an assessment becomes final, or 60 days from the date of the overpayment, whichever date occurs
later.
You can also file adjustments to previously filed returns online through the Employment Development Department (EDD)
e-Services for Business (edd.ca.gov/e-Services_for_Business). Refer to the Instructions for Completing the Quarterly
Contribution and Wage Adjustment Form (DE 9ADJ-I) (PDF) (edd.ca.gov/pdf_pub_ctr/de9adji.pdf) for additional information.
Check the box ☐ If only adjusting the DE 9, ☐ If only adjusting the DE 9C, ☐ If adjusting DE 9 and DE 9C,
that applies: complete Sections I, II, III, and V. complete Sections I, II, IV, and V. complete all sections.
Section I: Employer Information. Complete all fields (Please print). Quarter
Business Name: _______________________________________________JOHN AND JANE SMITH YYQ22 1
_______________________________________________ Employer Account Number
Street Address:e-Services_______________________________________________POforBOXBusiness12345 000-0000-0
City, State,(edd.ca.gov/payroll_taxes/e-Services_for_ZIP Code: _______________________________________________ANYTOWN, CA 12345
Business.htm).
Section II: Reason for Adjustment. Enter a detailed reason for the adjustments requested. (Required)
_____________________________________________________________________________________________________UNDERSTATED 1ST QUARTER BY $9,500.50 DUE TO ONE EMPLOYEE NOT REPORTED. REPORTED INCORRECT SSN, NAME FOR ONE EMPLOYEE.
_____________________________________________________________________________________________________
Section III: Request to Adjust the DE 9. (1) (2) (3)
Complete all fields. If requesting a credit (decrease) to Amounts Reported on Amounts That Difference
SDI or PIT, you must also complete Line O below. DE 9 or Most Recent Should Have Been Debit/(Credit)
Adjustment Form Reported
A. Total Subject Wages 9,000 00 18,500 50 9,500 50
B. Unemployment Insurance (UI) Taxable Wages 7,000 00 14,000 00 7,000 00
C. State Disability Insurance (SDI) Taxable Wages 9,000 00 18,500 50 9,500 50
D. Employer’s UI Contributions (UI rate___%3.4 times B) 238 00 476 00 238 00
E. Employment Training Tax (ETT rate___%0.1 times B) 7 00 14 00 7 00
F. SDI Withheld (SDI rate ____%1.1 times C)
(Includes Paid Family Leave) 99 00 203 51 104 51
G. Personal Income Tax (PIT) Withheld 150 00 350 55 200 55
H. Subtotal (Add amounts on Lines D, E, F, and G) 494 00 1,044 06 550 06
I. Plus: Erroneous SDI Deductions Not Refunded (Refer to Notebelow) 0 00
J. Less: Contributions and Withholdings Paid for the Quarter 494 00
K. Total Taxes Due or Overpaid (H2 + I – J). (If balance is due, complete L,
M, and N) 550 06
L. Penalty (If balance is due, calculate 15% of the amount on Line K) 82 51
M. Interest (Refer to the DE 9ADJ-I for instructions) 14 50
N. Total Due (Lines K + L + M) 647 07
O. SDI and PIT overpayments.If requesting a credit (decrease) to SDI or PIT, you must SDI Deductions PIT Deductions
answer the following questions:
1. Was the credit claimed above (column 3) withheld from the wages of employee(s)? ☐ Yes ☐ No ☐ Yes ☐ No
2. If yes, has this amount been refunded to the employee(s)? ☐ Yes ☐ No ☐ Yes ☐ No
3. Was the correct PIT reported on the Form W-2 issued to the employee(s)? ☐ Yes ☐ No
Note: SDI and PIT deductions are employee contributions. The EDD cannot refund these amounts unless you first refund the
erroneous deductions to the employee(s). If you have issued Form(s) W-2, do not refund PIT overwithholdings or
change the amount reported on the employee(s) Form W-2. The employee will receive a credit for the PIT overwithheld
when they file their California Income Tax Return (Form 540) with the Franchise Tax Board. If you are requesting a PIT credit
for a prior year because you paid the EDD more than the amount withheld from the employee(s), attach a copy of Form(s)
W-2 filed for each affected employee. Refer to the DE 9ADJ-I for additional instructions.
Sign on Page 2 and Mail To:Employment Development Department / PO Box 989073 / West Sacramento, CA 95798-9073
DE 9ADJ Rev. 4 (1-23) Page 1 of ___ CU
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FOR ILLUSTRATIVE PURPOSES ONLY
Examples were created using 2022 rates.
Refer to inside front cover for 2023 rates.
Quarter Employer Account Number
Business Name: ______________________________________JOHN AND JANE SMITH YYQ22 1 000-0000-0
Section IV: Request to Adjust the DE 9C. Complete Item A for all DE 9C adjustments. Complete Item B only for wage plan
code corrections to all employees. Complete Item C to request adjustments to individual employee information.
A. DE 9C Grand Totals for the Quarter
A1. Enter the correct grand totals for all Total Subject Wages Total PIT Wages Total PIT Withheld
employees for the quarter. 18,500 50 18,500 50 350 55
A2. Enter the number of employees full-time and part-time who 1st Month 2nd Month 3rd Month
worked during or received pay subject to UI for the pay period
which includes the 12thof the month. 1 2 2
Wage Item Count
A3. Enter the correct total number of wage lines for all employees for the quarter. 2
B. Wage Plan Code Corrections for All Employees. Leave blank if not correcting all wage plan codes. Refer to the
Information Sheet: Reporting Wage Plan Codes on Quarterly Wage Reports and Adjustments (DE 231WPC) (PDF)
(edd.ca.gov/pdf_pub_ctr/de231wpc.pdf) for additional information.
Enter Number of Employees: _________ Prior Plan Code: ____ Correct Plan Code: _____
(Item C below is not required if only adjusting wage plan codes for all employees.)
C. Individual Wage Line Adjustments. Identify the adjustment type for each affected employee and complete the fields
indicated. Include only the wage lines that need to be corrected. Make corrections to the quarter(s) in which the
information e-Services for Business was originally reported. Do not report negative amounts.
(edd.ca.gov/payroll_taxes/e-Services_for_Adjustment Type Fields to Complete for Each Affected Employee
Add employee(s)Business.htm).not previously reported. C1 –C6. Leave C7 C9– blank.
Remove employee(s) reported in error. C1 –C6. Enter 0.00 in C3 –C5.
Adjust wages or PIT amounts previously reported. C1 –C6. Leave C7 C9– blank.
Correct employee name(s). C1 –C6 and C7. Leave C8 –C9 blank.
Correct a Social Security number (SSN). C1 –C6 and C8. Leave C7 and C9 blank.
Correct wage plan code for one or more employees but not all. C1 –C6 and C9. Leave C7 and C8 blank.
Multiple adjustments . C1 –C6 and C7 –C9 if they apply to adjustment.
For name, SSN, or plan code corrections, enter
wages or withholdings amount to zero, enter 0.00 in the blank for all other
If aEntercorrectionthe informationreduces that should havefield. been reported in fields C1 C6.– C7 the–C9.informationLeaveadjustmentthesepreviouslyfieldstypes.reported in fields
C1. Social Security Number (SSN) C2.Employee Name (First, Mid dle Initial, Last) C7.Previously Reported Name (First, Middle Initial, Last)
xxx-xx-xxxx THOMAS T TAYLOR
C3. Total Subject Wages C4.PIT Wages C5.PIT Withheld C6.Plan Code C8.Previously Reported SSN C9.Previously Reported Plan Code
9,500 50 9,500 50 200 55 S
C1. Social Security Number (SSN) C2.Employee Name (First, Middle Initial, Last) C7.Previously Reported Name (First, Middle Initial, Last)
XXX-00-XXXX HARRY L JONES HAROLD L JONES
C3. Total Subject Wages C4.PIT Wages C5.PIT Withheld C6.Plan Code C8.Previously Reported SSN C9.Previously Reported Plan Code
9,000 00 9,000 00 150 00 S 000-XX-0000
C1. Social Security Number (SSN) C2.Employee Name (First, Middle Initial, Last) C7.Previously Reported Name (First, Middle Initial, Last)
C3. Total Subject Wages C4.PIT Wages C5.PIT Withheld C6.Plan Code C8.Previously Reported SSN C9.Previously Reported Plan Code
Please attach additional pages if reporting more than 3 wage line adjustments.
Section V: Declaration. I declare that the information herein is true and correct to the best of my knowledge. (A signature is
required on all adjustments)
Signature ______________________________Title _________________________OWNER Date _____________________________01/03/2023
Print Name _____________________________JANE SMITH Phone _______________________(123) 555-7899 Email ____________________________Jane123@gmail.com
Sign and Mail To:Employment Development Department / PO Box 989073 / West Sacramento, CA 95798-9073
DE 9ADJ Rev. 4 (1-23) Page 2 of ___
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FEDERAL FORMS W-2 AND 1099
Wage and Tax Statement (Form W-2)
Employers are required to annually prepare a federal Wage and Tax Statement (Form W-2) for each employee. For
tax year 2023, employers must provide each employee with a Form W-2 by January 31, 2024*. Prepare the Form
W-2 on the federal/state four-part paper form. To obtain these forms, visit theIRS (irs.gov).
For information on Form W-2 reporting requirements, refer to the IRS Employer’s Tax Guide (Publication 15, Circular
E). For federal instructions on completing Form W-2, refer to the IRS publication 2023 General Instructions for Forms
W-2 and W-3. To obtain these publications, visit theIRS (irs.gov) or call the IRS at 1-800-829-3676.
In addition to required federal information, employers must include PIT wages, PIT withheld, and SDI tax withheld in
the following Form W-2 boxes:
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” or 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 (PDF) (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, Form 1099-MISC, or Form 1099-NEC) 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.
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FEDERAL FORMS W-2 AND 1099 (cont.)
Do not send a copy of Form W-2 or Form W-2C to the State of California Employment Development Department (EDD)
or the Franchise Tax Board (FTB). The Forms W-2 and W-2C are not filed with the state because you should already
be reporting wage and withholding information to the EDD on the Quarterly Contribution Return and Report of Wages
(Continuation) (DE 9C). However, you must continue to send Forms W-2 and W-2C to your employees and the Social
Security Administration.
Information Return (Forms 1099-MISC and 1099-NEC)
Individuals, partnerships, corporations, or other organizations engaged in a trade or business in California may have
a requirement to report independent contractor payments made in the course of their business. For 2023, you must
provide a statement to each independent contractor by January 31, 2024*, containing the information furnished to the
IRS and FTB. If you do not use the official IRS Form 1099-MISC or 1099-NEC to furnish the statement to recipients,
refer to the IRS Publication 1179 for specific rules for substitute statements.
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 information returns to FTB. The following forms may be filed under this program: Forms 1099-DIV, 1099-G,
1099-INT, 1099-MISC, 1099-NEC, 1099-OID, 1099-PATR, 1099-R, and 5498. For information on the IRS Combined
Federal/State Filing program, call IRS at 1-866-455-7438.
If you are not participating in the Combined Federal/State Filing program, did not file by paper with the IRS, and file
250 or more information returns of one type, you must file electronically directly with FTB. If you file less than 250
returns, you must file either by paper or electronically 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 FTB. This applies to paper filing only.
Generally, FTB’s reporting requirements are the same as the IRS reporting requirements. For specific differences,
contact the Information Reporting Program Help Desk at IRPHELP@ftb.ca.gov.
Publications and Contact Information
Visit the IRS (irs.gov) to: obtain Form 1099 reporting requirements and instructions, the IRS Publication 1220, and
the IRS General Instructions for Forms 1099, 1098, 5498, and W-2G, or call 1-800-829-3676.
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.
For more information, contact:
Internal Revenue Services
1-866-455-7438
irs.gov
mccirp@irs.gov
Franchise Tax Board
1-916-845-6304
ftb.ca.gov
irphelp@ftb.ca.gov
*Failure to provide an Information Return (Form 1099), if required, may result in a penalty for each independent contractor as
imposed pursuant to section 13052.5 of the California Unemployment Insurance Code or section 19175 of the Revenue and
Taxation Code (R&TC). The amount of the penalty is the unreported payments for personal services multiplied by the maximum
rate as provided pursuant to section 17041 of the R&TC. Contact the EDD Taxpayer Assistance Center at 1-888-745-3886 for
assistance.
Note: All employers are required to notify all of their employees of the federal Earned Income Tax Credit. Refer to
page 73 for details.
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Change to Your Business Status
Registered employers must report any change in business status to the EDD. Employers or their authorized
representative may report changes to an employer payroll tax account using e-Services for Business.
BUSINESS NAME AND MAILING ADDRESS CHANGE
If you have changes to your business such as:
● Your Business name
● Corporation name
● Personal name (e.g., marriage)
● Change in ownership of the business
● Business mailing address
Action Required:
Notify the EDD of any change to your business status through e-Services for Business
(edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm).
NO LONGER HAVE EMPLOYEES
If you no longer have employees and will not be reporting wages in any future quarter, you must submit a final
DE 88, DE 9, and DE 9C. You may close your employer payroll tax account using e-Services for Business
(edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm). For instructions on how to reopen your Employer Payroll
Tax Account, visit the e-Services for Business FAQs category Register, Close, or Reopen an Employer Payroll Tax
Account (edd.ca.gov/en/payroll_taxes/faq_-_e-services_for_business).
If you currently do not have employees, but may have employees in future quarters, you are required to file your
DE 9 and DE 9C stating you have no payroll to report every quarter, otherwise the EDD may presume you have
employees and assess your account.
CLOSE YOUR BUSINESS
If you close your business, you are required to submit a final DE 88, DE 9, and DE 9C within 10 days of quitting
business, regardless of the normal due dates. You must close your employer payroll tax account using e-Services
for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm). For instructions on how to reopen your
Employer Payroll Tax Account, visit the e-Services for Business FAQs category Register, Close, or Reopen an
Employer Payroll Tax Account (edd.ca.gov/en/payroll_taxes/faq_-_e-services_for_business).
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Reopen Your Employer Payroll Tax Account
Request to reopen your employer tax account on e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_
Business.htm) when:
• If you paid wages in excess of $100 (or $750 for household employers) in the current calendar year or the prior
calendar year and pay wages in any amount in a calendar quarter.
• If you did not have payroll in the prior calendar year and you paid wages in excess of $100 ($750 for household
employers) in any calendar quarter in the current calendar year.
PURCHASE, SELL, TRANSFER, OR CHANGE OWNERSHIP
Registered employers must report any change in business status; for example, any change in business name or
legal entity, such as a change from partnership or limited liability company to corporation. Report changes through
e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm).
If you add or remove partners/LLC members; change corporate name/officers of a business entity type, the entity
normally keeps the same EDD employer payroll tax account number and continues to make payroll tax deposits and file
reports as though it was the same type of ownership for the entire year. The EDD must be notified of any change in the
ownership of a business entity so that the taxpayer information can be updated. For additional information, contact the
Taxpayer Assistance Center at 1-888-745-3886. If outside the U.S. or Canada, call 1-916-464-3502.
Remember: Report changes through e-Services for business (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.
htm).
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) (PDF) (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.
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WHAT IS A SUCCESSOR EMPLOYER?
A successor employer is an employer who has acquired all or part of another employer’s (predecessor’s) business
and continues to operate the business without substantial reduction of personnel resulting from the acquisition.
The successor employer may receive all or part of the predecessor’s UI reserve account balance by applying for a
reserve account transfer. The transfer may result in an immediate reduction or increase of the successor’s UI tax
rate. The successor employer must register the acquired business with the EDD.
For more information on reserve account transfers, refer to page 81 or call 1-916-653-7795.
Note: Acquiring all or part of the stock in a corporation does not constitute a new employing unit. The corporation
retains the same EDD employer payroll tax account number.
IT IS AGAINST THE LAW TO CHANGE/PURCHASE A BUSINESS ENTITY SOLELY
TO OBTAIN A LOWER UI RATE
Changing your business ownership solely for the purpose of obtaining an employer account with a lower UI
contribution rate is not allowed. Section 1052 of the California Unemployment Insurance Code provides that a
reserve account transfer will not apply to any acquisition, which is determined to have been made for the purpose
of obtaining a more favorable UI contribution rate. The EDD aggressively pursues businesses practicing UI rate
manipulation. To read more about UI rate manipulation, refer to page 83.
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 (UI), Disability Insurance (DI), and Paid Family Leave
(PFL). 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).
Required Notices and Pamphlets
Provide a copy of the following notices and pamphlets to each of your employees when appropriate. The publications
listed below are available at Required Notices and Pamphlets (edd.ca.gov/payroll_taxes/required_notices_and_
pamphlets.htm).
• The following pamphlets explain your employees’ benefit rights:
○ For Your Benefit:California’s Programs for the Unemployed (DE 2320) – Provides information on UI, DI,
PFL, and Workforce Services benefits available to the employee and must be given when an employer
discharges, lays off, or places an employee on a leave of absence.
○ Disability Insurance Provisions (DE 2515) – Provides information on DI benefits.
○ Paid Family Leave Brochure (DE 2511) – Provides information on PFL benefits.
Note: For additional information on your posting requirements, access the California Tax Service Center
(taxes.ca.gov). Voluntary Plan Disability Insurance (VPDI) insurers have similar literature. VPDI employers
must also supply claim forms to their employees. For further information on VPDI, refer to page 95.
• Notice required by the Earned Income Tax Credit Information Act (refer to page 73 for details).
• Notice to Employee as to Change in Relationship – Written notice must be given immediately to employees of
their discharge, layoff, leave of absence, or change in employment status, along with a DE 2320.
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ADDITIONAL REQUIREMENTS (cont.)
The following sample meets the minimum requirements:
NOTICE TO EMPLOYEE AS TO CHANGE IN RELATIONSHIP
(Issued pursuant to provisions of section 1089 of the California Unemployment Insurance Code.)
Name __________________________________________________ SSN _____________________
1. You were/will be laid off/discharged on __________________, 20_______.
(date)
2. You were/will be on leave of absence starting __________________, 20_______.
(date)
3. On __________________, your employment status changed/will change as follows:
(date)
________________________________________________
(Name of Employer)
________________________________________________
(By)
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.
Earned Income Tax Credit Information Act
The refundable California EITC is available to low-income working individuals who earned wage income subject to
California withholding and/or have net earnings from self-employment. This credit is similar to the federal Earned
Income Credit (EIC) but with different income limitations. To claim the California EITC, you must file a California
income tax return and attach a completed California Earned Income Tax Credit (FTB 3514) form. For information on
the availability of the credit, eligibility requirements, and how to obtain the necessary California tax forms or get help
filing, visit the Franchise Tax Board (ftb.ca.gov/forms) or call 1-800-852-5711.
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 will be provided within one week before, after, or during the time the employer provides an annual
wage summary, including, but not limited to, Forms W-2 or 1099, to the employee. The notice will 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.”
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PLANT CLOSURE OR MASS LAYOFF
Federal and California Worker Adjustment and Retraining Notification (WARN) laws require covered employers to
provide 60 days advance notice of plant closings and mass layoffs. Advance notice provides employees and their
families some transition time to adjust to the prospective loss of employment, to seek and obtain alternative jobs,
and, if necessary, to acquire skill training or retraining that will allow these employees to successfully compete in the
job market.
Employers should review the Federal WARN law and the California WARN law Labor Code section 1400 –1408 for a
full understanding of the notification requirements.
General Provisions of the Federal and California WARN Laws
Category Federal WARN California WARN
Covered Applicable only to employers with 100 or Applicable to a “covered establishment” that
Employers more full-time employees who must have employs or has employed in the preceding
been employed for at least six months of the 12 months 75 or more full and part-time
12 months preceding the date of required employees. As under the federal WARN Act,
notice in order to be counted. employees must have been employed for at
(29 United States Code [USC] 2101 and 20 least six months of the 12 months preceding
Code Federal Regulations [CFR] 639.3) the date of required notice in order to be
counted.
(California Labor Code, section 1400[a] and [h])
Plant Closing Plant closings involving 50 or more employees Plant closure affecting any amount of
or Layoff during a 30-day period. Layoffs within a 30-day employees. Layoff of 50 or more employees
Requiring period involving 50 to 499 full-time employees within a 30-day period regardless of percent
Notice constituting at least 33 percent of the full-time of workforce. Relocation of at least 100 miles
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,
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)
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PLANT CLOSURE OR MASS LAYOFF (WARN)
Category Federal WARN California WARN
Notice An employer must provide written notice 60 An employer must give notice 60 days prior to
Requirements days prior to a plant closing or mass layoff to all a plant closing, layoff, or relocation. In addition
of the following: to the notifications required under the federal
WARN Act, notice must also be given to both of
• Employees or their representative.
the following:
• Employment Development Department.
The Local Workforce Development Board.
○ Email a WARN Notice to •
WARNNotice@edd.ca.gov. • Employment Development Department.
The chief elected official of local government ○ Email a WARN Notice to
•
within which such closing or layoff is to occur. WARNNotice@edd.ca.gov.
(29 USC, 2102; 20 CFR 639.5 and 639.6) • The chief elected official of each city
and county government within which the
termination, relocation, or mass layoff
occurs.
(California Labor Code, section 1401)
Exceptions Regular federal, state, local, and federally California WARN law does not apply when the
and recognized Indian tribal governments are not closing or layoff is the result of the completion of
Exemptions covered. (20 CFR 639.3) a particular project or undertaking of an employer
to Notice subject to Wage Orders 11, 12, or 16, regulating
Requirements The following situations are exempt from the Motion Picture Industry, or Construction,
notice: Drilling, Logging, and Mining Industries, and the
There is an offer to transfer employee employees were hired with the understanding
•
to a different site within a reasonable that their employment was limited to the duration
commuting distance. (29 USC, 2101[b][2]; of that project or undertaking.
20 CFR 639.5) • (California Labor Code, section 1400[g])
• The closure is due to unforeseeable The notice requirements do not apply to
business circumstances or a natural employees involved in seasonal employment
disaster. (29 USC, 2102; 20 CFR 639.9) where the employees were hired with the
• The closing or layoff constitutes a strike understanding that their employment was
or constitutes a lockout not intended to seasonal and temporary.
evade the requirement of this chapter. • (California Labor Code, section 1400[g][2])
(29 USC, 2103[2])
Notice is not required if a mass layoff,
relocation, or plant closure is necessitated by a
physical calamity or act of war.
• (California Labor Code, section 1401[c])
• Notice of a relocation or termination is
not required where, under multiple and
specific conditions, the employer submits
documents to the Department of Industrial
Relations (DIR), and DIR determines that
the employer was actively seeking capital or
business, and a WARN notice would have
precluded the employer from obtaining the
capital or business. (California Labor Code,
section 1402.5). This exception does not
apply to notice of a mass layoff as defined
in California Labor Code section 1400(d).
(California Labor Code, section 1402.5[d])
Rapid Response services are available to assist employers and workers facing a potential mass layoff or plant closure.
These services are carried out by Rapid Response teams and are a collaborative effort between state and local
workforce development agencies. These teams work with employers to help avert layoffs and meet with workers who
face job loss. They provide important information about the services available under the Workforce Innovation and
Opportunity Act and the EDD Workforce Services and UI programs. If the dislocation is the result of foreign trade, the
dislocated worker may be eligible for case management services such as career assessments, development of an
Individual Employment Plan, review of eligible training programs, information about financial aid, career counseling,
labor market information, and supportive services; and income support, job search and relocation allowances, and
training under the Trade Adjustment Assistance (TAA) program. For more information about the TAA, refer to page 97.
To learn more about Rapid Response services, contact the Local Workforce Area (edd.ca.gov/jobs_and_training/Local_
Area_Listing.htm) near you.
For more information on WARN requirements visit WARN Information for employers (edd.ca.gov/Jobs_and_Training/
Layoff_Services_WARN.htm). Visit the federal WARN Act Compliance Assistance (doleta.gov/layoff/warn.cfm) for
more information.
edd.ca.gov 75 Taxpayer Assistance Center 1-888-745-3886
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U.S. GOVERNMENT CONTRACTOR JOB LISTING REQUIREMENTS
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 the State Workforce Agency Job Bank, which in California is known as
CalJOBSSM (caljobs.ca.gov). This is required to enable EDD to comply with federal compliance inquiries from the
Office of Federal Contractor Compliance Program (OFCCP). Contractors may post their jobs on the National Labor
Exchange (NLx) (usnlx.com), but CalJOBS SMdoes not maintain permanent records of jobs imported from the NLx
or other 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/agencies/vets/programs/vets4212).
The table below provides the general provisions of the Federal Contractor Reporting requirements.
Subject Subject Prior to December 1, 2003 On or After December 1, 2003
Job Employers with a federal government contract Government contractors with a federal
Listings of $25,000 or more, prior to December 1, 2003, government contract of $150,000 or more,
and not modified on or after December 1, 2003, must list applicable job openings with the
if more than $100,000, must list applicable state workforce agency job bank (CalJOBS in
job openings with the state National Labor California), or the local American Job Center
Exchange website. In California, employers (known as the employment service delivery
must first register and list applicable jobs within system) where the openings occur. Listing these
CalJOBSSM. employment openings is one type of affirmative
(41 CFR 60-250.40) action the contractor takes to recruit and hire
qualified veterans.
The contractor has some immediate actions
to take as soon as it has a minimum threshold
contract, and it has some ongoing actions it must
take for as long as it continues to be a federal
contractor subject to the Vietnam Era Veteran’s
Readjustment Assistance Act (VEVRAA).
For more information, refer to the
Postings and Notice Requirements (dol.
gov/sites/dolgov/files/ofccp/CAGuides/files/
Postings%26NoticesGuide-CONTR508c.pdf).
VETS-4212 Employers with a federal government contract Employers with a federal government contract of
Federal of $25,000 or more, entered into prior to $150,000 or more entered into or modified on or
Contract December 1, 2003, and not modified on or after after December 1, 2003, must file a VETS-4212
Reporting December 1, 2003, if more than $100,000, must Federal Contract Reporting.
file a VETS-4212 Federal Contract Reporting. (38 United States Code, sections 4211 and 4212)
(38 United States Code, sections 4211 and 4212)
Affirmative Employers with a federal government contract Government contractors with a federal
Action of $50,000 or more, entered into prior to government contract of $150,000 or more, must
Program December 1, 2003, and not modified on or after prepare, implement, and maintain a written
December 1, 2003, if more than $100,000 and Affirmative Action Plan (AAP) for each of its
have 50 or more employees, must prepare, establishments.
implement, and maintain a written Affirmative (41 CFR 60-300.40)
Action Plan (AAP) for each of its establishments.
(41 CFR 60-250.40)
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RECORDKEEPING
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.
• Date hired, rehired, or returned to work after a temporary layoff.
• Last date services were performed.
• 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.)
• Disbursement records showing payments to workers.
• Other information necessary to determine payments to workers.
If you have any questions on the records you must keep, refer to the Information Sheet: Employment Tax Audit
Process (DE 231TA) (PDF) (edd.ca.gov/pdf_pub_ctr/de231ta.pdf) or by contacting the Taxpayer Assistance Center at
1-888-745-3886.
For the latest tax news and employer resources, visit
California Employer News and Updates
(edd.ca.gov/payroll_taxes/employer-news.htm).
Subscribe to the EDD no-fee email subscription services
(edd.ca.gov/about_edd/get_email_notices.htm).
edd.ca.gov 77 Taxpayer Assistance Center 1-888-745-3886
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EMPLOYERS’ BILL OF RIGHTS
COMMITMENT
The Employment Development Department (EDD) is committed to applying the payroll tax laws of the State of
California in an equitable and impartial manner. We developed the following to inform you of your rights during the
employment taxation process.
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 109 for the definition of “good cause.”)
• Request a filing extension for up to 60 days. The law provides that the EDD may grant a filing extension when
the governor declares a state of emergency if the employer is directly affected by an emergency or disaster.
• 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.
• Petition certain actions to the California Unemployment Insurance Appeals Board.
The Employers’ Bill of Rights (DE 195) (PDF) (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.
OFFICE OF THE TAXPAYER RIGHTS ADVOCATE
The EDD Tax Branch established the Office of the Taxpayer Rights Advocate (OTRA), which is responsible for
providing a clear and consistent focus on protecting the rights of the taxpayer. Incorporated within OTRA are the
Taxpayer Advocate Office and the Settlements Office.
Taxpayer Advocate Office
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.
Employment Development Department
Taxpayer Advocate Office, MIC 93
PO Box 826880
Sacramento, CA 94280-0001
Toll-free Phone: 1-866-594-4177
Phone: 1-916-654-8957
Fax: 1-916-449-9498
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OFFICE OF THE TAXPAYER RIGHTS ADVOCATE (cont.)
Settlements Office
The Settlements Program provides employers and the state an opportunity to avoid the cost of prolonged litigation
associated with resolving disputed payroll tax issues (e.g., petitions for reassessment, appeals, or denial of refund claims).
When reviewing a settlement offer, the EDD considers the risks and costs for the state associated with litigating the
issues, balanced against the benefit of reaching a settlement agreement. Final tax liabilities, cases still in process,
cases involving fraud or criminal violations, and issues solely involving fairness or financial hardship are generally
not eligible. Depending on the reduction of tax and penalties, all settlement agreements are subject to approval by an
Administrative Law Judge, the California Unemployment Insurance Appeals Board, and/or the Attorney General’s office.
If you have questions, refer to the Information Sheet: Settlements Program (DE 231SP) (PDF) (edd.ca.gov/pdf_pub_ctr/
de231sp.pdf) or contact the Settlement Office at 1-916-653-9130 or the Taxpayer Assistance Center at 1-888-745-3886.
Settlement offers must be in writing. You can email, fax or mail in your settlement offers to the Settlements Office:
taxtsdsg@edd.ca.gov
Fax: 1-916-449-2161
Employment Development Department
Settlements Office, MIC 93
PO Box 826880
Sacramento, CA 94280-0001
PROTECTING YOUR PRIVACY
The EDD recognizes that your privacy is a personal and fundamental right without exception. The EDD values and
protects your privacy and places strict controls on the gathering and use of personally identifiable data. Your personal
information is not disclosed, made available, or otherwise used for purposes other than those specified at or before the
time of collection, except with your consent or as authorized by law or regulation.
Payroll tax and benefit information collected and maintained by the EDD is confidential. As an employer, you have
the right to obtain access to and inspect your records. You may also authorize your agent or representative to access
your records by submitting aPower of Attorney (POA) Declaration (DE 48) (PDF) (edd.ca.gov/pdf_pub_ctr/de48.pdf)
online through e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm) or by contacting the
Taxpayer Assistance Center at 1-888-745-3886.
If you have further questions regarding your privacy rights, contact the Tax Information Security Office at
1-916-654-5981.
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:
• The liability must be final and undisputed.
• The employer’s account must be inactive and out-of-business or the applicant must no longer have a
controlling interest or any association with the business that incurred the liability.
• The applicant must meet all financial requirements.
• Full financial disclosure is required before an offer can be analyzed.
If you have questions, refer to theInformation Sheet: Offers in Compromise(DE 631C) (PDF) (edd.ca.gov/pdf_pub_
ctr/de631c.pdf) or contact the OIC office at 1-916-464-2739.
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UNEMPLOYMENT INSURANCE – TAXES
The Unemployment Insurance (UI) program provides financial assistance to individuals who are temporarily out of
work through no fault of their own. In California, this program is financed entirely by employers.
METHODS OF PAYING FOR UI BENEFITS
Experience Rating Method
The experience rating method is used by the majority of employers. For a detailed explanation of the experience
rating method, refer to the “How Your UI Tax Rate Is Determined” section below, obtain Information Sheet: California
System of Experience Rating (DE 231Z) (PDF) (edd.ca.gov/pdf_pub_ctr/de231z.pdf), or contact the Taxpayer
Assistance Center at 1-888-745-3886.
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) (PDF) (edd.ca.gov/pdf_pub_ctr/de231np.pdf) and Potential Liability for Unemployment Insurance (UI)
Benefits When Electing the Reimbursable Method of Financing Under the California Unemployment Insurance Code
(CUIC) (DE 1378F) (PDF) (edd.ca.gov/pdf_pub_ctr/de1378f.pdf). 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
School Employees Fund (SEF) Method
California public school districts (kindergarten through 12 thgrade), California community colleges, and charter
schools may elect to participate in the School Employees Fund (SEF), which is a special UI reimbursable financing
method available for school districts. For additional information visit SEF (edd.ca.gov/payroll_taxes/school_
employees_fund.htm) or contact the SEF Unit at 1-916-653-5380.
HOW YOUR UI TAX RATE IS DETERMINED
Tax Rate Schedules
The UI tax rates are based on one of seven tax rate schedules (AA through F) established by law. The first step in the
annual process of establishing the UI tax rates for the calendar year is for the EDD to determine which of the seven
tax rate schedules will be in effect. Employers are assigned their UI tax rates from the same rate schedule.
New Employer – UI Tax Rate and Reserve Account
A UI reserve account is a nonmonetary account that is set up when an employer registers with the EDD. New
employers are assigned a 3.4 percent (.034) UI contribution rate for a period of two to three years. This will depend
on when the employer meets the criteria under section 982(b) of the California Unemployment Insurance Code (CUIC).
After that, an employer’s UI contribution rate is determined by their experience rating and the condition of the UI Fund.
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NOTICE OF TAX RATES
Each December, the Employment Development Department (EDD) mails the Notice of Contribution Rates and
Statement of UI Reserve Account (DE 2088) that shows your Unemployment Insurance (UI), and Employment
Training Tax (ETT) tax rates and taxable wage limits for the upcoming year. For SDI rate information visit Tax-Rated
Employers (edd.ca.gov/en/payroll_taxes/tax-rated-employers/). If you have address changes and/or agent updates,
please contact the EDD immediately in order to receive your notice timely.
You may protest any item on the DE 2088 except SDI and ETT, which are specifically set by law. To protest online,
visit the EDD e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm). You must provide
a valid Letter ID with the associated tax rate year you are protesting within 60 days of the issued date on the notice.
You may also file a protest in writing which must be postmarked within 60 days of the issued date on the notice.
Please include your employer payroll tax account number, the specific item(s) you wish to protest, and the reason
you are protesting. An extension of up to 60 days may be granted for “good cause” if your request is submitted before
the protest deadline.
For more information about the DE 2088 or protest information, review the Explanation of the Notice of Contribution
Rates and Statement of UI Reserve Account (DE 2088) for the Period Shown on Your DE 2088 (DE 2088C) (PDF)
(edd.ca.gov/pdf_pub_ctr/de2088c.pdf) or contact the Taxpayer Assistance Center at 1-888-745-3886.
FEDERAL UNEMPLOYMENT TAX ACT CERTIFICATION
The Internal Revenue Service (IRS) uses the Federal Unemployment Tax Act (FUTA) certification process to verify
that the total taxable wages claimed on the Employer’s Annual Federal Unemployment (FUTA) Tax Return (Form
940) or the federal Household Employment Taxes (Form 1040, Schedule H) was actually paid to the state. Under
this “dual” system, you are subject to both the state and federal payroll tax requirements.
You are required to file reports and pay UI taxes with the EDD. You are also required to file a Form 940 with IRS to
report total taxable UI wages and pay any federal Unemployment Tax due. Generally, you can take a federal credit
against your FUTA tax for the UI taxes you paid to California. You may request a FUTA Recertification at Ask EDD
(askedd.edd.ca.gov) and follow the prompts under Payroll Tax.
On an annual basis, the IRS and the EDD compare amounts reported on your IRS Form 940 to the Total
Subject Wages (line C) and UI Taxable Wages (line D2) reported on your EDD Quarterly Contribution Return
and Report of Wages (DE 9). When an “out-of-balance” condition exists, reconciliation must be made or
an assessment may be issued by either the IRS or the EDD. A common reason for an “out-of-balance” is
a change of entity or federal employer identification number (FEIN) that has not been updated with the
EDD. You can view or update your FEIN and make changes to your account at e-Services for Business
(edd.ca.gov/payroll_taxes/e-Services_for_Business.htm). For more FUTA information, visit the FUTA Information
page (payroll_taxes/federal-unemployment-tax-act-htm) or contact the EDD FUTA Certification Unit at
1-916-654-8545.
RESERVE ACCOUNT TRANSFERS
When an employer acquires all or part of an ongoing business and continues to operate the business without
substantial reduction of personnel resulting from the acquisition, the employer may request the previous owner’s
UI reserve account balance transferred to the new ownership by completing an Application for Transfer of Reserve
Account (DE 4453). This form can be filed electronically through e-Services for Business (edd.ca.gov/Payroll_Taxes/
e-Services_for_Business.htm). If the EDD approves the transfer, the UI tax rate will be recalculated and may result in
an immediate reduction or increase in the UI tax rate. For further information regarding reserve account transfers, call
1-916-653-7795.
Note:
• When a UI reserve account transfer is 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.
WAGES IN ANOTHER STATE
Section 930.1 of the California Unemployment Insurance Code (CUIC) provides that a California employer who pays
wages to an employee for employment subject to the unemployment insurance laws of another state (and reports
to that state), can use such wages in computing the UI taxable wage limit in the same calendar year if the individual
is subsequently transferred to California. Such wages may not be used to arrive at the taxable wage limit for State
Disability Insurance purposes.
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INTERSTATE RECIPROCAL COVERAGE ELECTIONS FOR MULTISTATE WORKERS
When an individual performs services in two or more states and the services are not localized in any one state, under
the provisions of CUIC (sections 602 and 603), the employer may request to report the individual’s services to one
state.
Upon approval for UI and State Disability Insurance purposes, the employer may report to any state in which (a)
services are performed, (b) the employee has residence, or (c) the employer maintains a place of business.
Note: Special reporting may be required for California Personal Income Tax withholding purposes.
For additional information, refer to the Information Sheet: Multistate Employment (DE 231D) (PDF)
(edd.ca.gov/pdf_pub_ctr/de231d.pdf) or contact the Taxpayer Assistance Center at 1-888-745-3886.
TIPS FOR REDUCING YOUR UI TAX RATE
UI tax works like any other insurance premium. An employer may pay a lower rate when former employees make
fewer claims on the employer’s payroll tax account. The following steps may help reduce your UI tax rate:
• Maintain a stable workforce; it could save you UI taxes. High employee turnover increases the potential of
benefits charged to your reserve account.
• Submit your Payroll Tax Deposit (DE 88) within the required time limits to ensure your UI contributions are
included in calculating your UI tax rate for the following year.
• Respond timely to the Benefit Audit (DE 1296B, DE 1296NER, and DE 1296NBA). It may lead to the reversal
of related charges to your reserve or reimbursable account. For additional information, refer to “Benefit Audits
to Determine Fraud” on page 90.
• Respond timely to the Notice of Unemployment Insurance Claim Filed (DE 1101CZ or DE 1101ER) if you
believe that a former employee does not meet the UI eligibility criteria. A timely response to a DE 1101CZ or
DE 1101ER may reduce charges to your reserve account. For added convenience, employers and third-party
administrators can elect to electronically receive and respond to the DE 1101CZ through the State Information
Data Exchange System (SIDES). VisitSIDES (edd.ca.gov/SIDES) to learn more.
• Respond timely to the Notice of Wages Used for Unemployment Insurance (UI) Claim (DE 1545) if you believe
the wages used to establish a claim are incorrect, the employee is still working, or if you believe a former
employee does not meet the UI eligibility criteria. A timely response to a DE 1545 may reduce charges to your
reserve account.
• Conduct and document an exit interview to help you to understand why the employee is leaving. This may
result in changes to your policies or procedures that will assist you in retaining your employees. Written
documentation of the exit interview may be important in supporting your protest.
• Permit leaves of absence because they may help keep fully trained personnel.
• Keep good personnel records to justify any action(s) taken. Give written warnings prior to discharging an
employee and keep a copy of these warnings and other supporting information. For more information, refer to
the Recordkeeping section on page 77.
• Protest UI benefit claims for former employees who you believe are not eligible for benefits (e.g., employee
voluntarily quit or was discharged for misconduct, etc.). Answer UI claim notices promptly, accurately, and in detail.
• Rehire former employees who are currently receiving UI benefits that may be charged against your
reserve account.
• Report refusals of work to the EDD at (AskEDD, Employer Inquiry/Report Refusal of Work).
• Provide clear, specific answers to phone interview questions from EDD personnel.
• Review your Statement of Charges to Reserve Account (DE 428T) and report inaccuracies within the protest
time limits.
• Bring witnesses with firsthand knowledge of pertinent facts when attending an appeal hearing.
For additional information on the UI program or assistance in reducing UI costs, refer to the booklet Managing
Unemployment Insurance Costs(DE 4527) (PDF) (edd.ca.gov/pdf_pub_ctr/de4527.pdf).
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FRAUD PREVENTION DETECTION AND REPORTING
The Employment Development Department (EDD) recognizes your concerns about imposter fraud and the threat
of identity theft. Imposter fraud and identity theft occurs when someone steals your employees’ employment and/or
personal information and uses that information for personal gain. We actively investigate cases of imposter fraud
and are committed to taking the steps necessary to protect the integrity of the Unemployment Insurance (UI) Fund.
To assist in these efforts, you may receive a Request for Additional Information (DE 1326ER) asking you to validate
information provided to us by an individual when we suspect a UI claim may have potential identity or imposter issues.
Completing and returning the DE 1326ER with the requested information will assist us in resolving these issues
promptly. Visit our fraud detection and prevention activities (edd.ca.gov/unemployment/responding_to_ui_claim_
notices.htm) for more information.
We also encourage you to take all necessary steps to protect your employees’ Social Security numbers (SSN) and
other identifying information. A key way to protect yourself and your employees is by properly disposing of your old
payroll records. California law requires you to properly destroy (e.g., shred, erase, etc.) the personal information on
all records under your control. Your employees may sue you for civil damages if you fail to protect their confidential
information. For more information on California privacy legislation and protecting yourself and your employees from
identity theft, visit the Office of Privacy Protection (oag.ca.gov/privacy).
To minimize potential fraud and protect your UI reserve account, we urge you to carefully review each EDD statement
and/or notice and respond as directed in a timely manner to any items for which you have questions. If you suspect
your payroll or personnel data has been compromised, please report the incident immediately to our Fraud Hotline at
1-800-229-6297 or by submitting a fraud reporting form (edd.ca.gov/unemployment/fraud_prevention.htm).
Additionally, the Social Security Administration (SSA) offers employers and authorized agents a service for
verifying employees’ SSNs. For information on how to access the SSA’s SSN verification service, visit theSSA
(ssa.gov/employer/ssnv.htm) or contact your local SSA office.
To learn about steps that you can take to fight imposter fraud, protect your employees, and control your UI costs,
review the brochure How You Can Prevent Unemployment Insurance Imposter Fraud (DE 2360ER) (PDF)
(edd.ca.gov/pdf_pub_ctr/de2360er.pdf).
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.
For the latest tax news and employer resources, visit
California Employer News and Updates
(edd.ca.gov/payroll_taxes/employer-news.htm).
Subscribe to the EDD no-fee email subscription services
(edd.ca.gov/about_edd/get_email_notices.htm).
edd.ca.gov 83 Taxpayer Assistance Center 1-888-745-3886
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UNEMPLOYMENT INSURANCE FUNDING
The California Unemployment Insurance (UI) program is funded through payroll taxes paid by employers. These
taxes are placed in the UI Fund and benefits are paid to qualified claimants from this fund. The individual tax reserve
account established for each employer has no monetary value. The reserve account is an accounting tool used to
keep track of credits and charges made against the employer’s account to determine his/her annual UI tax rate. For
additional information, please refer to “Unemployment Insurance Taxes” on page 80.
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
Employment Development Department (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 92 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
2023 $40 $450 $11,700
2022 $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 all earnings during their weekly quitting for personal reasons, to go to school, or
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 Failed to apply for a job when referred by a public
occupation or in an occupation for which they are •
employment office.
reasonably qualified.
• Be actively seeking work on their own behalf. •
Failed to make reasonable efforts to look for work.
• Failed to comply with regulations.
• Have received a minimum amount of wages
during the base period. For additional information, • Made false statements or withheld information for
please refer to the Qualifying UI Wages section the purpose of receiving UI benefits.
on page 85. • Is not legally entitled to work in the U.S.
• Comply with regulations in regard to filing claims. • Is not able to work or is not available for work.
Is working full-time or earns wages totaling more
Once a claim is filed, EDD staff will determine if there •
than 25 percent of their weekly UI benefit amount.
are eligibility issues. An EDD representative may call
employers as well as claimants to resolve eligibility issues. • Voluntarily left work due to a trade dispute.
Certain types of employees are not covered for UI
benefits. For additional information, refer to:
• Information Sheet: Types of Employment (DE 231TE).
• Information Sheet: Types of Payments (DE 231TP).
The DE 231TE and DE 231TP are available at Forms
and Publications (edd.ca.gov/payroll_taxes/forms_and_
publications.htm).
edd.ca.gov 84 Taxpayer Assistance Center 1-888-745-3886
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QUALIFYING UI WAGES
To have a valid UI claim, individuals must have earned:
• $1,300 or more in covered employment wages in one quarter of the base period, or
• $900 or more in covered employment wages in the base period quarter with the highest earnings and earned
at least 1.25 times the high quarter earnings during the entire base period.
Certain types of payments made to employees are not considered covered employment (wages) for UI purposes. For
additional information, refer to Information Sheet: Types of Payments (DE 231TP) (PDF)
(edd.ca.gov/pdf_pub_ctr/de231tp.pdf). The table shows if certain types of jobs and types of income are taxable
for UI. If the table shows that a job or type of income is “not subject” to UI tax, then that income is excluded from
establishing a UI claim.
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 employer.
Note: The maximum amount an employer can be charged on a regular claim is $11,700. Refer to “Benefit Amount”
on page 84. 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.
HOW TO DESIGNATE AN AGENT OR SINGLE ADDRESS
Tax-Rated Employers or Reimbursable Employers
Tax-Rated or Reimbursable Employers may make address changes or designate an agent by contacting the EDD
Tax Branch. Refer to “Changes to Your Business Status” information on page 70.
Reimbursable Employers
Public entity and nonprofit employers should also submit the single agent address or agent information to the EDD
Tax Branch to have the address on file changed. To have the Notice of Unemployment Insurance Claim Filed
(DE 1101CZ) and tax forms sent to the designated single address, refer to “Changes to Your Business Status”
information on page 70.
In addition, public entity and nonprofit employers and their agents must elect to have the notice of new or additional
claim (DE 1101CZ or DE 1101ER) sent to a designated single address, per section 806 of the California Unemployment
Insurance Code.
Send requests for designation of a single address to:
Employment Development Department
Unemployment Insurance Division, MIC 40
PO Box 826880
Sacramento, CA 94280-0001
Fax: 1-916-654-8117
HOW TO REQUEST AN ELECTRONIC DE 1545
Employers and their agents may electronically obtain the Notice of Wages Used for Unemployment Insurance (UI)
Claim (DE 1545) through the Electronic Data Interchange (EDI). To obtain information about EDI, contact:
Employment Development Department
Employer Assistance Unit, MIC 16
PO Box 826880
Sacramento, CA 94280-0001
Phone: 1-916-464-2325
edd.ca.gov 85 Taxpayer Assistance Center 1-888-745-3886
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RESPONDING TO NOTICES
You need to respond timely and in writing to the Notice of Unemployment Insurance Claim Filed (DE 1101CZ or
DE 1101ER), Notice of Wages Used for Unemployment Insurance (UI) Claim (DE 1545), or the Notice of Potential
Increased Liability For Training Extension Benefits (DE 1545TE) if:
• The claimant was terminated or voluntarily quit.
• You have knowledge of information that might affect the claimant’s eligibility for UI benefits.
• The claimant’s name and Social Security number are not correct.
• You want a written decision of eligibility that provides your appeal rights to the EDD’s decision.
• The claimant’s work was in non-covered employment for UI purposes and the wages should not be used to
establish a UI claim, including work performed as an elected official.
If you believe the claimant is not entitled to benefits, it is important to protest in writing when you receive the first
notice and within the protest time limits. Refer to page 87 for the “Claim Notices and Protest Time Limits” table. Your
response must include any facts that may affect the claimant’s eligibility for UI benefits or the potential liability of your
UI reserve account for benefits paid to the claimant.
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:
• Employer’s payroll tax account number, name, and address.
• Claimant’s name and Social Security number.
• Beginning date of the claim.
• Date of separation from employment.
• Dates of separation(s) and rehire(s) during and following the quarters shown on the DE 1545.
• Information supporting your belief of the claimant’s ineligibility. (Refer to page 84 for a list of disqualifying
events.) Protests should include specific facts and circumstances. General statements (e.g., employee was
fired for misconduct) should be supported with specific events and documentation. This will result in better
eligibility decisions based on the facts.
• If the wage information listed on the DE 1545 or DE 1545TE is incorrect, please inform the EDD in writing at:
Employment Development Department
Employers Assistance Unit, MIC 16
PO Box 826880
Sacramento, CA 94280-0001
Include the following information with your correction of wage information:
○ Employer’s payroll tax account number, name, and address.
○ Claimant’s name and Social Security number.
○ Beginning date of the claim.
○ Correction to the wage information. Please provide supporting documentation to the correction, such as
a copy of the Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C) or Quarterly
Contribution and Wage Adjustment Form (DE 9ADJ).
○ Name, signature, and phone number of the employer or employer representative preparing the wage
correction.
○ Date of the wage correction.
• The protest should be signed by the person having personal knowledge of the facts or having access to
records containing the facts.
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.
edd.ca.gov 86 Taxpayer Assistance Center 1-888-745-3886
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SUBSEQUENT BENEFIT YEAR
If you receive a notice that a subsequent benefit year has been established, you must resubmit any facts you
furnished on the initial Notice of Unemployment Insurance Claim Filed (DE 1101CZ or DE 1101ER) to be entitled to
a determination and/or ruling based on such facts for the later benefit year.
CLAIM NOTICES AND PROTEST TIME LIMITS
Notice Postmarked Within
DE 1101CZ or DE 1101ER
Mailed to the last employer when a current or former 10 calendar days of the date mailed to you (the date is
employee files a new UI claim or an existing claim is printed on the top right side of the DE 1101CZ and the
reopened. DE 1101ER).
DE 1545
Issued to all base period employers after a claimant The deadline to submit a ruling request is located on the
receives the first UI payment. This notice informs each top right side of the DE 1545.
employer of the wages used to establish the claim and
the amount of potential charges to their UI reserve To request a ruling, submit separation information
account for that claim. within 15 calendar days from the mail date. If wage
information is incorrect, submit the information within 30
Note: Employers and their agents may obtain the calendar days.
DE 1545 electronically. (Refer to “How to
Request an Electronic DE 1545” on page 86.)
DE 1545TE
Mailed to base period employers only when a former 15 calendar days from the mail date.
employee has been approved for the California Training
Benefits (CTB) program. This form will inform you of
the maximum amount of potential benefits payable,
including training extension benefits, and the amount
of potential charges to your UI reserve account. When
protesting a former employee’s eligibility for the CTB
program, employers should address the particular
criteria that individuals must meet under section 1269
and 1269.1 of the California Unemployment Insurance
Code.
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.
For the latest tax news and employer resources, visit
California Employer News and Updates
(edd.ca.gov/payroll_taxes/employer-news.htm).
Subscribe to the EDD no-fee email subscription services
(edd.ca.gov/about_edd/get_email_notices.htm).
edd.ca.gov 87 Taxpayer Assistance Center 1-888-745-3886
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NOTICES OF DETERMINATION, RULING, OR MODIFICATION
You will receive one of the following DE 1080 notices in response to eligibility issues you reported on the Notice
of Unemployment Insurance Claim Filed (DE 1101CZ or DE 1101ER), Notice of Wages Used for Unemployment
Insurance (UI) Claim (DE 1545), or the Notice of Potential Increased Liability for Training Extension Benefits
(DE 1545TE).
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 84 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 sections 1269 and 1269.1
of the CUIC.
edd.ca.gov 88 Taxpayer Assistance Center 1-888-745-3886
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UNEMPLOYMENT INSURANCE BENEFITS – APPEAL RIGHTS
You have the right to file an appeal if you do not agree with a decision made by the Employment Development
Department (EDD) about your:
• Former employee’s right to receive UI benefits.
• UI reserve account being charged for benefits paid to a former employee.
You must send your written appeal to the EDD within 30 calendar days of the date the decision was mailed to
you. The EDD will send you an acknowledgment of receipt and registration of your appeal with the phone number
for the Office of Appeal hearing the case. The Office of Appeal will schedule a hearing with an Administrative Law
Judge (ALJ). Both you and your former employee will be notified of the date, time, and place of the hearing at least
10 days before the hearing date. If you are filing an appeal to a Notice of Ruling (DE 1080CZ), the employee is not
considered a party to the proceeding and is not notified of the hearing. The ALJ will conduct a hearing and give all
interested parties the opportunity to present their evidence. The ALJ will consider the facts presented at the hearing
and issue a written decision that is mailed to all concerned parties.
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 CUIAB (cuiab.ca.gov/). 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) (PDF) (edd.ca.gov/pdf_pub_ctr/de1000m.pdf) is enclosed with all
DE 1080s.
edd.ca.gov 89 Taxpayer Assistance Center 1-888-745-3886
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FALSE STATEMENT PENALTY
Section 1142(a) of the CUIC provides that an employer and/or the employer’s agent may be assessed a cash
penalty from 2 to 10 times the claimant’s weekly benefit amount if it is determined that the employer, employer’s
representative, employer’s officer, or employer’s agent willfully made a false statement or misrepresentation or failed
to report a material fact concerning the claimant’s termination of employment.
Section 1142(b) of the CUIC provides that an employer and/or the employer’s agent may be assessed a cash
penalty from 2 to 10 times the claimant’s weekly benefit amount if it is determined that the employer, employer’s
representative, employer’s officer, or employer’s agent willfully made a false statement or representation or willfully
fails to report a material fact concerning the claimant’s reasonable assurance of reemployment as defined in
section 1253.3 of the CUIC.
Section 1142.1 of the CUIC provides that an employer may be assessed a cash penalty from 2 to 10 times the
claimant’s weekly benefit amount if it is determined that the employer, employer representative, employer officer,
or employer agent, where the claimant was performing services for an educational institution as defined in
section 1253.3, willfully makes a false statement or representation or fails to report a material fact concerning the
claimant’s termination of employment or regarding any week during which services were performed (as provided in
section 1253.3) or any time granted to the claimant for professional development while working for that employer.
If you are not in agreement with the Notice of Determination or Assessment Under UI Code Section 1142(A)
(DE 3807 SEP) or Notice of Determination or Assessment Under UI Code Section 1142(B) (DE 3807 RA), you may
file a Petition for Reassessment to an Administrative Law Judge (ALJ), of the California Unemployment Insurance
Appels Board (CUIAB), refer to the Notice of Petition Rights (DE 2350). The CUIAB, established separate and apart
from the EDD, reviews, hears, and renders impartial and independent decisions in tax and benefit matters related to
the CUIC.
Prepare an original and a copy of the petition. The petition may be informal but must be in writing and should:
• Show your EDD employer payroll tax account number and the date of the assessment. For faster processing,
enclose a copy of the DE 3807 SEP or DE 3807 RA with your petition.
• Provide the claimant’s name and Social Security number.
• Clearly indicate that it is a “Petition for Reassessment.”
• Describe the reason for the petition and specify the facts or grounds for requesting a reassessment.
• Be signed by you or your authorized agent.
• State your address or that of your agent, if any.
To be timely, the petition must be mailed or delivered to the office shown below within 30 calendar days from the date
of assessment. The time to protest can be extended by an ALJ for not more than 30 days but only if “good cause” for
the delay is shown. Mail or deliver the original and a copy of your petition for reassessment to:
California Unemployment Insurance Appeals Board
Sacramento Office of Appeals
2400 Venture Oaks Way, Suite 100
Sacramento, CA 95833-4224
BENEFIT AUDITS TO DETERMINE FRAUD
The benefit audit process leads to the recovery of improper UI benefit payments and the potential reversal of
related charges to the employer’s reserve account when the EDD determines that the claimant was not entitled to
UI benefits. The Benefit Audit (DE 1296B) identifies individuals who may have improperly received UI benefits for
weeks in which they worked and had earnings. The EDD has several processes to detect and deter fraud; thereby,
protecting the integrity of the UI program. Each quarter, as part of the EDD fraud detection efforts, DE 1296B audit
forms are mailed to employers to request wage information for specific weeks that their California employees may
have worked.
Each quarter, the EDD also runs a cross-match with other states’ wage records. If it appears an individual may have
worked in another state while receiving California UI benefits, then an Interstate Unemployment Insurance Benefit
Payment Audit (IB 8605) form will be sent to out-of-state employers.
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BENEFIT AUDITS TO DETERMINE FRAUD (cont.)
Additionally, as part of our continuing efforts to detect and deter fraud, the EDD cross-matches the Social Security number
and start-of-work date (SWD) from the New Employee Registry information reported by employers with UI benefit payment
information. An accurate SWD (not the hire date) is important for this cross-match process. If a match is identified, a New
Employee Registry Benefit Audit (DE 1296NER) audit form will be sent to the employer requesting earnings and eligibility
information. The returned employer information is used to identify benefit overpayments and to recover the improper
benefit payments.
The DE 1296NER audit form enables the EDD to detect fraud up to six months sooner than the quarterly Benefit Audit
Process and protects the UI Fund by reducing overpayments. Employers who have responded to the DE 1296NER audit
form will not receive a DE 1296B for the same employee for the same quarter.
Similar to the NER cross-match, the EDD runs the National Directory of New Hires (NDNH) cross-match on a weekly
basis which identifies work earnings with employers in other states. When the NDNH cross-match identifies an
overlap between the SWD reported by the employer and weeks the claimant certified for UI benefits, a New Hire
Benefit Audit (DE 1296NBA) audit form is mailed to the employer.
Employers are required by state and federal laws to respond to the DE 1296B, the DE 1296NER, the IB 8605, and
the DE 1296NBA benefit audits. Employers’ participation in these processes is essential to detect potential fraud and
to protect the integrity of the UI program.
Send questions or comments about the benefit audit process 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/Completing_Benefit_Audit_Forms.htm).
BACK PAY AWARD
Employees who receive UI benefits and later receive back pay awards or settlements must have the Back Pay Award
or settlement allocated to the period for which it was awarded. The EDD must be reimbursed an amount that equals
the amount of UI benefits received if the Back Pay Award covers the same period for which UI benefits were paid.
Back pay is considered wages and should be reported within 30 days from the settlement or agreement date.
A determination must be made regarding who is responsible to repay the EDD for the overpaid benefit
amounts. If the Back Pay Award agreement states that the employer will withhold overpayment amounts
from the Back Pay Award or settlement, the employer is responsible for submitting the amounts withheld
to the EDD to clear the overpayment. The employer must provide the claimant’s name and complete Social
Security number and information concerning the period covered by the Back Pay Award.
At the employer’s request, the EDD will determine the amount of UI benefits to be repaid, establish an overpayment,
and notify the claimant and employer. (“Employer” refers to both tax-rated and reimbursable employers.)
Reimbursable employers will receive credits against their future charges only after the liability has been paid. For
further information, contact:
Employment Development Department UI Overpayment Center, #017
PO Box 826880
Anaheim, CA 92816-6600
Phone: 1-714-687-4400
WORKERS’ COMPENSATION BENEFITS
Employees who received UI benefits and later receive workers’ compensation benefits in the form of Temporary Total
Disability (TTD) benefits, Vocational Rehabilitation Maintenance Allowance (VRMA), or settlements for the same
period must repay the EDD an amount equal to the UI benefits received. For further information, contact:
Employment Development Department
Workers’ Compensation Specialist
PO Box 2588
Rancho Cordova, CA 95670
Phone: 1-916-464-0713
edd.ca.gov 91 Taxpayer Assistance Center 1-888-745-3886
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STATEMENT OF CHARGES
Each September, the annual Statement of Charges to Reserve Account (DE 428T) is mailed to you. This statement
notifies you of the Unemployment Insurance (UI) benefit charges and credits to your reserve account from July 1
through June 30 of the previous fiscal year. Charges are itemized and based on the UI benefits paid to your former
employees. Charges to your reserve account may increase your UI contribution rate for the next calendar year. It
is important to review your statement carefully and respond timely if you do not agree with the charges. To protest
online, visit e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm). You must provide
a valid Letter ID for the period you are protesting within 60 days of the issued date on the notice. File a protest in
writing postmarked within 60 days of the issued date on the notice. An extension of up to 60 days may be granted for
“good cause” (refer to page 56) if your request is submitted before the protest deadline. When filing your protest, you
must include your Employment Development Department (EDD) eight-digit employer payroll tax account number, the
claimant’s name, Social Security number, claim date, the dollar amount, total number of claimants protested, and the
specific reason for protesting. Protests with missing information will be returned.
Protest charges may be submitted online through e-Services for Business or by mail to:
Employment Development Department
Contribution Rate Group
PO Box 826831
Sacramento, CA 94230-6831
For a sample form and detailed instructions on how to file a protest, refer to the DE 428T Protest Sample Form
(DE 428C) and the Information Sheet Statement of Charges to Reserve Account, DE 428T (DE 428I) by visiting
Forms (edd.ca.gov/Forms) or contact the Taxpayer Assistance Center at 1-888-745-3886.
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.
ALTERNATE BASE PERIOD
The Alternate Base Period (ABP) program requires the EDD to use more recently earned wages to calculate
monetary eligibility for new UI claims for unemployed individuals who do not qualify for a UI claim using the Standard
Base Period (SBP). The SBP uses the wages earned in the first four of the last five completed calendar quarters prior
to the beginning date of the UI claim. The ABP uses the wages earned in the four most recently completed calendar
quarters.
In addition to employers’ current quarterly wage reporting, if the ABP wages are not showing in the EDD database,
employers will be asked to provide the wages for claimants. At times, employers may be asked to provide wages
prior to the quarterly wage reporting. The EDD will only request wages from employers if it appears that claimants
have enough wages to qualify for a UI claim using the ABP. If it is necessary for the EDD to obtain the wages from
the employer, the EDD will mail the employer a Request for Wages (DE 1919) to request wage information for each
of the five most recently completed quarters. This will assist the EDD in determining if the claimant qualifies for a
claim using the SBP or ABP. Employers have 10 days to respond to the EDD request.
In addition to mailing the employer a DE 1919, the EDD will mail the claimant an Affidavit of Wages (DE 23A) to
request the wage information. If the employer does not respond to the EDD request for wage information within the
10 days, and the claimant provides the DE 23A along with tangible evidence of the wages earned, the EDD will file
the claim based on the wage information provided by the claimant.
If the base period wages on an ABP claim are later adjusted when the quarterly wages are reported by the employer,
an overpayment may not be established on the ABP claim unless the claim was based on fraudulent information
provided by the claimant. Meaning, if employers do not respond timely to the EDD original DE 1919, they may incur
reserve account charges they might not have otherwise incurred.
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LAYOFF ALTERNATIVES
Partial UI Claims
The Partial Unemployment Insurance (UI) Claim program enables employers to keep trained employees who are
partially employed during slow business periods. Employers may use the Partial UI Claim program if employees are
temporarily working reduced hours or have been placed on layoff status for no more than two consecutive weeks.
For information about partial claims and the partial forms, refer to the Notice of Reduced Earnings (DE 2063) and
Notice of Reduced Earnings (Fisherperson) (DE 2063F) by visiting Partial Claims FAQs (edd.ca.gov/unemployment/
faq_-_partial_claims.htm).
If you participate in the program, you should:
• Instruct your employees to call the EDD UI toll-free numbers to file a UI claim by phone.
• Instruct your employees to advise the EDD they are participating in the Partial UI Claims program.
• Complete the employer portion of the Notice of Reduced Earnings (DE 2063) and issue it to your employees.
• Instruct employees to complete and sign the DE 2063 and mail it to the EDD.
If an employee has no wages (does not work) for two consecutive weeks, instruct the employee to contact the
Employment Development Department (EDD) to obtain the regular Continued Claim (DE 4581) form. Participation in
this program may increase the employer’s UI tax rate.
For more information about partial UI claims contact one of the toll-free UI phone numbers on page 106 or visit
UI Claims (edd.ca.gov/unemployment/partial_claims.htm).
Work Sharing Program
The Work Sharing program is available to employers who reduce employee wages and hours as an alternative to
a layoff. The affected workforce or work unit(s) must consist of two or more employees who comprise at least 10
percent of the workforce or work unit(s) and the employer must meet other requirements in order to participate.
The employer must sign a Work Sharing (WS) Unemployment Insurance Plan Application (DE 8686) with the EDD
and comply with all requirements to remain eligible for participation. The DE 8686 must be periodically renewed.
Participation in this program may increase the employer’s UI tax rate. If you are interested in participating in the
program or would like additional information, visit Work Sharing claims (edd.ca.gov/unemployment/work_sharing_
claims.htm) or contact:
Employment Development Department
Special Claims Office
PO Box 419076
Rancho Cordova, CA 95741-9076
Phone: 1-916-464-3343
Fax: 1-916-464-2616
Alternate fax: 1-916-464-3333
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 who have employed 75 or more full and part time employees in the preceding 12 months and are planning
plant closures, or layoffs of 50 or more employees within a 30-day period, or relocation of at least 100 miles affecting
any amount of employees, must give affected employees at least 60 days written notice. Employees must have been
employed for at least six of the 12 months preceding the date of required notice in order to be counted. Please refer
to the Plant Closure or Mass Layoff section on page 74 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).
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STATE DISABILITY INSURANCE PROGRAM
The State Disability Insurance (SDI) program provides Disability Insurance (DI) and Paid Family Leave (PFL) benefits to
eligible workers who need to take time off work due to a disability or family leave. DI is a component of the SDI program.
DI provides partial wage replacement benefits to eligible California workers who have a loss of wages when they are
unable to work due to a non-work-related illness, injury, or pregnancy. PFL is another component the of SDI program. It
covers family leave. PFL provides benefits to eligible workers who take time off work to care for a seriously ill child, parent,
parent-in-law, grandparent, grandchild, sibling, spouse, or registered domestic partner. Benefits are available to new
parents who need time off work to bond with a new child through birth, adoption, or foster care placement. Benefits are
also available to eligible workers who take time off work to participate in a qualifying event because of a spouse, registered
domestic partner, parent, or child’s military deployment to a foreign country.
TAXES – WHO PAYS FOR STATE DISABILITY INSURANCE?
The SDI program, which includes DI and PFL, is funded through mandatory employee payroll deductions for most
California workers. California law requires employers to provide coverage for employees with payroll in excess of
$100 in a calendar quarter. There are a few exceptions. Some of those specifically excluded are:
• Some domestic workers.
• Some governmental employees.
• Employees of interstate railroads.
• Employees of some nonprofit agencies.
• Individuals claiming a religious exemption.
Note: When a worker has more than one employer during a calendar year, it is possible that excess SDI
contributions may be withheld from the worker’s wages. Workers should request a refund of excess SDI
withholdings on their California income tax return.
The SDI tax rate may be adjusted annually to not more than 1.5 percent (.015) or less than 0.1 percent (.001)
depending on the balance in the Disability Fund. Employee contributions withheld are paid by the employer to either
the Disability Fund or a Voluntary Plan (refer to page 95).
EMPLOYEE BENEFITS
Eligible employees may file for DI benefits for each occurrence of disability or PFL benefits up to the maximum
number of weeks allowed within any 12-month period to care, bond or participate in a qualifying event because
of a family member’s military deployment to a foreign country. The brochure Disability Insurance Provisions
(DE 2515) contains general information on DI eligibility. The Paid Family Leave Brochure (DE 2511) 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 paper forms that contain applications to file for benefits and additional program
information. Employees can also apply electronically through SDI Online (edd.ca.gov/disability/sdi_online.htm).
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 unable to
work due to a non-work-related illness, injury, or pregnancy. Employers are also required to provide PFL
information to each employee requesting time off to care for a seriously ill family member, to bond with a new
child, or to participate in a qualifying event resulting because of family member’s military deployment to a
foreign country. 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.
EMPLOYER 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 usingSDI Online
(edd.ca.gov/disability/sdi_online.htm).
To deter fraud, please respond immediately if you are not the employer shown on the DE 2503 or DE 2503F, or if the
individual filing for benefits:
• Is not your employee.
• Has quit their 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
employee eligibility for DI/PFL benefits.
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SDI ONLINE
SDI Online is an electronic claim filing system available to employers, individuals filing for benefits,
physicians/practitioners, Voluntary Plan employers, and third-party 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 SDI Online (edd.ca.gov/disability/SDI_Online.htm).
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, if the plan is paid by the employees, the employer holds the VP contributions in a trust
fund to pay DI or PFL benefit claims and approved expenses. The employer may enlist a greater benefit by paying
for the plan rather than having the employees pay for it. 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. The employer may loan or gift the plan: any 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.
For more information on VP options, refer to the Employers’ Guide to Voluntary Plan Procedures (DE 2040) (PDF)
(edd.ca.gov/pdf_pub_ctr/de2040.pdf) call 1-916-653-6839 (TTY users dial the California Relay Service 711), or email
VPProgram@edd.ca.gov.
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 CUIC, self-employed
individuals who are employers, may elect UI and 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) (PDF) (edd.ca.gov/pdf_pub_ctr/de231ec.pdf).
For additional information, refer to the Fact Sheet: Disability Insurance Elective Coverage Program (DIEC) (DE
8714CC) (PDF) (edd.ca.gov/pdf_pub_ctr/de8714cc.pdf) or call the Taxpayer Assistance Center at 1-888-745-3886.
WORKERS’ COMPENSATION INSURANCE
Workers’ compensation insurance is an employer paid insurance that provides benefits to eligible workers
experiencing a loss of wages when they are unable to perform their regular or customary work due to an
occupational illness or injury. Generally, employees are not eligible for SDI when receiving workers’ compensation
benefits unless the SDI rate is greater than the workers’ compensation rate. For additional information, visit the
Department of Industrial Relations (dir.ca.gov/dwc).
If you have any employees, you are required by law to have workers’ compensation insurance. Failure to do so is a
crime and may result in penalties and closure of your business.
If you have questions about workers’ compensation insurance or how to obtain coverage, contact your insurance
agent or the Division of Workers’ Compensation at 1-800-736-7401.
SDI FRAUD
To provide affordable benefits to eligible workers, the SDI program has systems in place to detect and deter fraud.
Help fight fraud (edd.ca.gov/about_edd/fraud.htm) by reporting suspected fraudulent activity to the Ask EDD
(askedd.edd.ca.gov/s/) fraud reporting form, or contact the Fraud hotline at 1-800-229-6297 or fax1-866-340-5484.
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EMPLOYMENT AND TRAINING SERVICES
WORKFORCE SERVICES
The Employment Development Department (EDD) provides a comprehensive range of employment and training
services in partnership with state and local agencies through numerous America’s Job Center of California SM(AJCC)
locations statewide. The EDD administers several federal employment and training programs, the largest being the
Workforce Innovation and Opportunity Act (WIOA), Title I Adult, Dislocated Worker and Youth programs and the
Title III Wagner-Peyser Act Employment Service programs. These programs provide job seekers with access to
employment, education, training, and supportive services in order to succeed in California’s labor market, and help
match employers with the skilled workers they need to compete in the global economy.
Employers may access the following services offered by the WIOA and Wagner-Peyser programs at an AJCC:
• Applicant screenings and referrals • Job placement assistance
• Recruitment services • Labor market information
• Business closure assistance • On-the-job training
• Customized training • CalJOBSSM
To locate your nearest AJCC, visit the EDD’s Office Locator (edd.ca.gov/Office_Locator/).
SM
CalJOBS
CalJOBS SMis California’s online labor exchange system which provides quick access to a large pool of job-ready
candidates. Employers can post job openings, browse résumés, and find qualified candidates for employment.
Employers without internet access or who have special requirements, can be served by customer service
representatives who take job opening information by phone or fax, and assist employers in finding qualified
applicants. There is no fee to use CalJOBSSM.
To register with CalJOBSSM, you will need your EDD employer payroll tax account number. Visit CalJOBSSM (caljobs.
ca.gov) or call the CalJOBS SMEmployer Help Desk at 1-877-622-4997 for assistance. If you do not have an EDD
employer payroll tax account number, please refer to page 7 for information about obtaining one.
Visit employment and training services (edd.ca.gov/jobs_and_training/Employer_information.htm) for more
information or locate your nearest America’s Job Center of CaliforniaSM (edd.ca.gov/Office_Locator/).
EMPLOYMENT TRAINING PANEL
The Employment Training Panel (ETP) is a statewide business-labor training and economic development program.
The ETP provides funding to employers to assist in upgrading the skills of their workers through training that leads
to good paying, long-term jobs. The ETP was created in 1982 by the California State Legislature and has invested
approximately $1.7 billion for the successful training and employment retention of more than 1.36 million workers by
over 91,000 California businesses to date. The ETP is a funding agency, not a training agency. Businesses determine
their own training needs and how best to provide training.
The ETP funds training to foster job creation and the retention of workers in secure, full-time employment in targeted
industries in order to improve California’s competitiveness in a global economy and to advance the skills of the state’s
workforce. The ETP’s Core Funding Program primarily funds retraining of currently employed workers in companies
threatened by out-of-state competition and has placed special emphasis on training for small businesses with fewer
than 100 employees in California.
Funding
The legislature established the Employment Training Tax (ETT) in 1982. All tax-rated employers, including new employers,
are subject to the ETT. Employers with positive reserve accounts are assessed 0.1 percent (.001) on the first $7,000 of
each employee’s wages. Employers do not pay the ETT while their accounts have a negative reserve balance, but they
must pay a higher rate of Unemployment Insurance (UI) tax. The maximum ETT collected is $7 per employee, per year.
The ETP’s Core Funding Program is funded by the ETT. The ETP has also received additional funding for alternative
programs. This additional funding has been through partnerships with the California Energy Commission (CEC), as well
as through funding from the Labor and Workforce Development Agency (LWDA) to fund specific training programs.
How Is ETP Different?
The ETP’s performance-based contracts ensure that ETP funded training results in good-paying, secure jobs. Before
an employer may earn training cost reimbursement, trainees must receive a certain number of training hours and
must complete the required retention period at their job, depending on the contract type, as well as meet the required
ETP minimum wage. The employer determines the training courses, trainers, and types of training that best meet
their business needs.
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GENERAL INFORMATION
The ETP contracts directly with tax-rated employers, groups of employers (including associations and chambers
of commerce), training agencies, vocational schools, Workforce Development Boards (WDB), and grant recipients
under the Workforce Innovation and Opportunity Act (WIOA).
Under its Core Funding Program, the ETP funds the following types of training to promote a healthy labor market in
a growing and competitive economy:
• 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:
Sacramento Central Office ............................................... 1-916-327-5640
North Hollywood Regional Office ..................................... 1-818-755-1313
Sacramento Regional Office ............................................ 1-916-327-5439
San Diego Regional Office ............................................... 1-619-881-1777
San Francisco Bay Area Regional Office ......................... 1-650-655-6930
TRADE ADJUSTMENT ASSISTANCE
The Trade Adjustment Assistance (TAA) program is a federal program that assists U.S. workers who have lost or may
lose their jobs as a result of foreign trade.
The TAA program is administered by the EDD and provides benefits and services to workers who are a part of
a certified worker group and who are determined eligible for individual benefits and services, including: training,
employment and case management services, job search and relocation allowance, and income support. To obtain
and file a Petition for Trade Adjustment Assistance (ETA 9042), workers may visit the U.S. Department of Labor
website (dol.gov/agencies/eta/tradeact/petitioners), contact any America’s Job Center of CaliforniaSM, or contact the
EDD TAA State Coordinator at WSB_TAA@edd.ca.gov.
For more information about the TAA program, visit the EDD’s TAA webpage at (edd.ca.gov/Jobs_and_Training/
Trade_Act.htm).
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WORK OPPORTUNITY TAX CREDIT
The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers for hiring individuals from
certain target groups who have consistently faced significant barriers to employment.
To be considered for the tax credit, employers must submit properly completed forms to the EDD within 28 days of
the employee’s start date to determine if their new hire meets the eligibility criteria.
For identification of target groups and additional information, visit Work Opportunity Tax Credit (edd.ca.gov/wotc), call
1-866-593-0173 or email WOTCSupport@edd.ca.gov.
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/wotc) to be able to submit WOTC
Request for Certification applications online.
Employers with 24 employees or less, and 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.
Employment Development Department
Work Opportunity Tax Credit Authorization Center
2901 50th Street
Sacramento, CA 95817
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LABOR MARKET INFORMATION
The Labor Market Information Division (LMID) collects, analyzes, and publishes information about California’s labor
market and economy. Labor market information helps employers, policy makers, and researchers develop plans and
make important business decisions.
What Labor Market Information Is Available Online?
To access labor market data that is of interest to employers and the business community, visit theLMID
(labormarketinfo.edd.ca.gov). Labor market information is organized by customer type. Select “LMI by Customer” to
find information specific to employers’ needs, such as:
• Affirmative Action and Equal Employment Opportunity Planning Information – Get population, labor force, and
summary occupational information to help with developing affirmative action programs.
• Labor Market Information for Employers – Find links to wage statistics, benefits information, data for your
business plans, local labor market profiles, and more.
• National Compensation Survey – A federal survey of employee salaries, wages, and benefits.
• Quarterly Census of Employment and Wages – The program serves as a near census of monthly employment
and quarterly wage information at the state and county levels and provides the most detailed industry data
available.
• Local Area Profiles – Find an overview of labor market information in the state or a county, including employment
and unemployment, industry payroll information, wages, the consumer price index, and more.
• Employment Projections – Estimates the changes in industry and occupational employment over time resulting
from industry growth, technological change, and other factors.
Information about workplace issues, including those related to benefits, meal breaks, and pay are available from the
Department of Industrial Relations (dir.ca.gov).
For assistance, contact the LMID at 1-916-262-2162 or your local Labor Market Consultant
(labormarketinfo.edd.ca.gov/file/resource/LMIConsultants.pdf).
Multiple Location and/or Function Employers
When an employer maintains a business with more than one physical location or conducts more than one business
activity/function at the same location, and the secondary location has a total of 10 or more employees, the employer
is considered to be a multiple establishment employer. A primary location is defined as the one with the highest
number of employees. If your firm fits the multiple location criteria and you are not currently completing a Multiple
Worksite Report (BLS 3020), please contact the LMID’s Employment and Payroll Group at 1-855-728-7973.
Remember: Filing the Multiple Worksite Report (BLS 3020) is mandatory and must be done on a quarterly basis.
The LMID mails the federal form BLS 3020 to multiple worksite business owners at the close of each quarter (e.g.,
December 31, 2022). Employers have until the end of the following month (e.g., January 31, 2023) to return the
BLS 3020 form to the Employment Development Department.
How Your Industry Code Is Determined
All businesses and government organizations are assigned an industry classification code from the North American
Industry Classification System (NAICS), which allows the U.S. Bureau of Labor Statistics to tabulate national and
state economic data by industry. Most new employers are assigned an industry code based on their response to
Section R (Industry Activity) of the Commercial Employer Account Registration and Update Form (DE 1). Each year,
selected employers are sent an Industry Verification Form (BLS 3023 NVS or NVM) to verify the accuracy of their
industry code and physical location address. This process is known as the Annual Refile Survey. Other employers,
who have not yet been assigned an industry code, may receive an Industry Classification Form (BLS 3023 NCA).
Please answer all questions about your business and industry thoroughly when completing these forms. For
additional information, call 1-800-562-3366.
Note: The BLS 3023-NVS form can be filed electronically by using the Web ID and password provided by the Bureau
of Labor Statistics. To complete the form electronically, visit the Annual Refiling Survey (idcfars.bls.gov/).
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LABOR MARKET INFORMATION (cont.)
THE IMPORTANCE OF OCCUPATIONAL INFORMATION
The LMID collects data directly from employers primarily using surveys, such as the Occupational Employment and
Wage Statistics (OEWS) Survey, to learn about the occupations used by employers and the wages paid for those
occupations. The OEWS program produces employment and wage estimates annually for more than 800 occupations
by industry and geographic area.
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 OEWS Survey, or would like more information
about this program, contact the EDD at 1-800-826-4896 or at LMIOccupationalSurvey@states.bls.gov.
To access occupational information, visit Labor Market Information (labormarketinfo.edd.ca.gov) and under the LMI
by Subject section, select Occupations or Wages.
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INFORMATION AND ASSISTANCE BY TOPIC
If you have any questions regarding the following topics, please contact the designated agency or office.
TOPIC DESCRIPTION CONTACT
California Personal To request the California PIT withholding EDD (edd.ca.gov)
Income Tax (PIT) tables or for information on whether Taxpayer Assistance Center:
Withholding payments are subject to California PIT 1-888-745-3886
withholding. Outside the U.S. or Canada, call
1-916-464-3502
California Tax Service This is a joint tax agency website. It CTSC (taxes.ca.gov)
Center (CTSC) contains tax-related information from the
Employment Development Department
(EDD), the Franchise Tax Board (FTB),
the California Department of Tax and Fee
Administration (CDTFA), and the Internal
Revenue Service (IRS).
CalJOBSSM An online labor exchange system CalJOBS SMEmployer Helpdesk
featuring self-service options to search Monday through Friday
for jobs, build résumés, find qualified 8 a.m. to 4:30 p.m. (PT)
candidates for employment, and gather Caljobsemployer@edd.ca.gov
information on education and training 1-877-622-4997
programs. CalJOBS (caljobs.ca.gov)
Employers and job seekers may contact
the nearest America’s Job Center of Central Office Workforce Services
California SMfor additional assistance. Division, MIC 50
PO Box 826880
To locate your nearest office, visit Office Sacramento, CA 94280-0001
Locator (edd.ca.gov/Office_Locator).
Jobs and Training
(edd.ca.gov/Jobs_and_Training/)
Disability Insurance (DI) DI is a component of the State Disability EDD Disability Insurance:
Insurance (SDI) program. DI provides • English....................1-800-480-3287
partial wage replacement benefits to • Spanish ..................1-866-658-8846
California workers who are unable to
work due to a non-work-related illness, TTY: 1-800-563-2441
injury, or pregnancy. Employer/Licensed Health Professional
Help Line:
1-855-342-3645
This phone number is dedicated
to employers and licensed health
professionals only.
EDD Disability (edd.ca.gov/en/disability/
disability_insurance/)
e-Services for Business A convenient and secure method for e-Services for Business
managing your employer payroll tax (edd.ca.gov/Payroll_Taxes/e-Services_
account, filing most of your returns and for_Business.htm)
reports, and paying tax deposits and
liabilities online. Refer to page 50 for Taxpayer Assistance Center:
additional information. 1-888-745-3886
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TOPIC DESCRIPTION CONTACT
Economic Development The EDD Labor Market Information Labor Market Information Division
Division offers data on occupational (labormarketinfo.edd.ca.gov):
wages and outlook, employment by 1-916-262-2162
industry, and state and local labor market.
Employee Eligibility to Under federal law, employers are required U.S. Citizenship and Immigration
Work to verify that every individual (citizen, Services (www.uscis.gov/)
national, or other) 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, 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: 1-916-449-9498
Employment Provides a variety of information on EDD (edd.ca.gov)
Development the EDD programs and services, forms
Department Website and publications, and links to other
government sites.
Employment Tax Rates A Notice of Contribution Rates and EDD Rate Management Group, MIC 4
Statement of UI Reserve Account PO Box 826880
(DE 2088) is mailed annually by Sacramento, CA 94280-0001
December 31 to notify employers of their Phone: 1-916-653-7795
UI and ETT tax rates. For additional (24-hour automated phone system)
information, refer to page 81.
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 (etp.ca.gov)
Panel retain workers in targeted industries in Sacramento
performance-based contracts. Includes Central Office 1-916-327-5640
retraining current employees, training
new hires (unemployed individuals), and Regional Offices:
Special Employment Training program. North Hollywood 1-818-755-1313
For additional information, refer to page Sacramento 1-916-327-5439
97. San Diego 1-619-881-1777
San Francisco Bay Area 1-650-655-6930
edd.ca.gov 102 Taxpayer Assistance Center 1-888-745-3886
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TOPIC DESCRIPTION CONTACT
Federal Tax For federal employment tax and Internal Revenue Service (irs.gov):
Requirements personal income tax requirements, 1-800-829-4933
contact the Internal Revenue Service
(IRS). The federal Employer’s Tax
Guide (Publication 15, Circular E) and
Employer’s Supplemental Tax Guide
(Publication 15-A) are available from the
IRS.
Federal Unemployment The method the IRS uses to verify with EDD FUTA Certification Unit Phone:
Tax Act (FUTA) the states that the credit claimed on the 1-916-654-8545
Certification Form 940 or Form 1040, Schedule H,
was actually paid to the state. Refer to
page 82 for additional information.
Forms
• Alternate Tax Forms The requirements and approval for using EDD Alternate Forms Coordinator
alternate forms to file your payroll tax 1-916-255-0649
reports can be obtained by contacting the
alternate forms coordinator.
• Tax Forms and Tax forms and publications are available EDD Forms and Publications
Publications on the Internet and Employment Tax (edd.ca.gov/payroll_taxes/forms_and_
Offices. publications.htm)
Less than 25 copies: 1-888-745-3886
25 copies or more: 1-916-322-2835
Job Referral and The EDD Workforce Services offers a Find a local EDD office or America’s
Recruitment Services variety of services that bring employers Job Center of California SM(edd.ca.gov/
with job openings together with qualified Office_Locator/).
job seekers. Employer Information:
(edd.ca.gov/Jobs_and_Training/
Employer_Information.htm)
Labor Law Requirements Information about workplace issues, Department of Industrial Relations
including those related to benefits, meal (dir.ca.gov)
breaks, and pay are available on the DIR
website.
Labor Market California’s labor market information can Labor Market Information Division
Information help with important business decisions. (labormarketinfo.edd.ca.gov):
Data available includes occupational 1-916-262-2162
employment and wage data, industry
employment, labor force, and selected
population characteristics.
Paid Family Leave (PFL) PFL is a component of the State Disability EDD Paid Family Leave:
Insurance (SDI) program. PFL provides • English....................1-877-238-4373
partial wage replacement benefits to • Spanish ..................1-877-379-3819
California workers who take time off work • Cantonese ..............1-866-692-5595
to care for a seriously ill child, parent, • Vietnamese .............1-866-692-5596
parent-in-law, grandparent, grandchild, • Armenian ................1-866-627-1567
sibling, spouse, or registered domestic • Punjabi ...................1-866-627-1568
partner. Benefits are available to new • Tagalog ...................1-866-627-1569
parents who need time off work to bond TTY: 1-800-445-1312
with a new child through birth, adoption, Employer Licensed Health Professional
or foster care placement. Benefits are Help Line:1-855-342-3645
also available to eligible workers who take This phone number is dedicated
time off work to participate in a qualifying to employers and licensed health
event because of a spouse, registered professionals only.
domestic partner, parent, or child’s
EDD Paid Family Leave
military deployment to a foreign country. (edd.ca.gov/disability/paid_family_leave.
htm)
edd.ca.gov 103 Taxpayer Assistance Center 1-888-745-3886
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TOPIC DESCRIPTION CONTACT
Payroll Tax Seminars Seminar topics include reporting EDD Taxpayer Assistance Center:
requirements, how to complete payroll 1-888-745-3886
tax forms, and independent contractor Register online at
and employee issues. EDD Payroll Tax Seminars
(edd.ca.gov/payroll_tax_seminars/).
Reimbursable Method of Public employers and certain nonprofit EDD
Paying Unemployment organizations have the option of Reimbursable Accounting Group, MIC 19
Insurance (UI) Benefits becoming “reimbursable” employers. PO Box 826880
Employers using this method to pay UI Sacramento, CA 94280
benefits are required to reimburse the UI
Fund on a dollar-for-dollar basis for all UI 1-916-653-5846
benefits paid to their former employees.
School Employees Fund Only California public school employers EDD School Employees Fund, MIC 13
(SEF) (kindergarten through 12 thgrade), PO Box 826880
California community colleges, and Sacramento, CA 94280
charter schools may elect to participate 1-916-653-5380
in the SEF (UI program) to finance UI School Employees Fund
benefits. (edd.ca.gov/payroll_taxes/school_
employees_fund.htm)
Small Business Located on the California Tax Service California Tax Service Center
Assistance Center Center website, it provides helpful (taxes.ca.gov)
information about starting, running, or
closing your business.
State Disability SDI program provides two benefits: EDD Disability Insurance:
Insurance (SDI) Program Disability Insurance (DI) and Paid Family • English....................1-800-480-3287
Leave (PFL). DI provides partial wage • Spanish ..................1-866-658-8846
replacement benefits to California workers Hearing Impaired (TTY): 1-800-563-2441
who are unable to work due to a non-
work-related illness, injury, or pregnancy. EDD Paid Family Leave:
PFL provides partial wage replacement • English....................1-877-238-4373
benefits to California workers who take • Spanish ..................1-877-379-3819
time off work to care for a seriously ill • Cantonese ..............1-877-692-5595
family member, to bond with a new child, • Vietnamese .............1-866-692-5596
or to participate in a qualifying event • Armenian ................1-866-627-1567
because of a family member’s military • Punjabi ...................1-866-627-1568
deployment to a foreign country. The SDI • Tagalog ...................1-866-627-1569
program is funded through employee TTY: 1-800-445-1312
payroll deductions. Employer/Licensed Health Professional
Help Line: 1-855-342-3645
This phone number is dedicated to
employers and licensed health professional
only.
EDD State Disability Insurance
(edd.ca.gov/disability).
SDI Online SDI Online is our electronic claim EDD SDI Online
filing system available to employees Employer/Licensed Health Professional
and licensed health professionals, for Help Line: 1-855-342-3645
submission of Disability Insurance (DI) This phone number is dedicated
and Paid Family Leave (PFL) claim to employers and licensed health
information. Employers, Voluntary professionals only.
Plan (VP) employers, and third-party SDI Online
administrators can use SDI online to (edd.ca.gov/disability/SDI_online.htm)
securely submit employee information for
VP
DI claims online.
VPProgram@edd.ca.gov
edd.ca.gov 104 Taxpayer Assistance Center 1-888-745-3886
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TOPIC DESCRIPTION CONTACT
State Information Data SIDES is a secure and timely way for EDD
Exchange System employers and third party administrators SIDES E-Response Technical Support:
(SIDES) to electronically receive and respond 1-855-327-7057
to the EDD’s Notice of Unemployment SIDES Web Service Technical Support
Insurance Claim Filed (DE 1101CZ). SIDES-support@naswa.org
SIDES streamlines communication to This number is for employers with
help employers manage their UI account inquiries related specifically to SIDES.
and reduce improper payments. Employers with questions about the
Unemployment Insurance (UI) program
should use the phone numbers listed
below under Unemployment Insurance
Benefits.
Tax Debt – California Enables a qualified tax debtor to EDD Offers in Compromise:
Payroll Taxes eliminate an employment tax liability at 1-916-464-2739
less than full value.
• Offers in
Compromise Provides employers and the state an EDD
opportunity to avoid the cost of prolonged Settlements Office, MIC 93
litigation associated with resolving PO Box 826880
• Settlements disputed employment tax issues. Sacramento, CA 94280-0001
Program Phone: 1-916-653-9130
Fax: 1-916-449-2161
Taxpayer Assistance For general tax information, the Taxpayer EDD
Center Assistance Center staff is available Taxpayer Assistance Center:
8 a.m. to 5 p.m., PT, Monday through 1-888-745-3886
Friday. The Taxpayer Assistance Center Outside the U.S. or Canada, call
will be closed on state holidays. 1-916-464-3502
TTY: 1-800-547-9565
Taxpayer Advocate If you are unable to resolve an Taxpayer Advocate Office
Office employment tax problem with an EDD (edd.ca.gov/payroll_taxes/taxpayer_
representative, supervisor, and office advocate.htm)
manager, you can contact the Taxpayer Taxpayer Advocate Office, MIC 93
Advocate Office for assistance. PO Box 826880
Sacramento, CA 94280-0001
Toll-Free: 1-866-594-4177
Phone: 1-916-654-8957
Fax: 1-916-449-9498
Underground Economy Investigates businesses that are paying Underground Economy Operations (edd.
workers undocumented cash payments ca.gov/Payroll_Taxes/Underground_
or not complying with labor, taxes, and Economy_Operations.htm)
licensing laws. 1-800-528-1783
ueo@edd.ca.gov
edd.ca.gov 105 Taxpayer Assistance Center 1-888-745-3886
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TOPIC DESCRIPTION CONTACT
Unemployment Provides temporary income to EDD Unemployment Insurance Services
Insurance (UI) Benefits unemployed workers who meet the UI Phone
eligibility requirements. • English.....................1-800-300-5616
• Spanish ...................1-800-326-8937
• Cantonese ...............1-800-547-3506
• Vietnamese ..............1-800-547-2058
• Mandarin .................1-866-303-0706
Hearing Impaired (TTY)1-800-815-9387
UI program self-service 1-866-333-4606
Employer Information:
Employers who call should listen to the
introduction message, select language
choice, and press “5” for the employer
menu (available in English and Spanish)
that provides UI and Workforce Service
information, or visit Unemployment
(edd.ca.gov/unemployment/) and
select the “Employer Information” link
(edd.ca.gov/unemployment/).
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 OnlineSM (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 paper 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 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.
edd.ca.gov 106 Taxpayer Assistance Center 1-888-745-3886
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TOPIC DESCRIPTION CONTACT
Voluntary Plan California law allows an employer to apply EDD Voluntary Plan
to the EDD for approval of a Voluntary (edd.ca.gov/disability/Employer_
Plan (VP) for the payment of Disability Voluntary_Plans.htm)
Insurance (DI) and Paid Family Leave 1-916-653-6839
(PFL) benefits in place of the mandatory
State Disability Insurance (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.
Workers’ Compensation If you have employees, you are required Workers’ Compensation Insurance
Insurance by law to have workers’ compensation (dir.ca.gov/dwc)
insurance coverage. Failure to do so is Your insurance agent or Division of
a crime and may result in penalties and Workers’ Compensation
closure of your business.
1-800-736-7401
Workforce Services The EDD offers a variety of services Find a local EDD office or America’s Job
that brings employers with job openings Center of CaliforniaSM
together with qualified job seekers. (edd.ca.gov/Office_Locator/).
Work Opportunity Tax The EDD is the WOTC certifying EDD
Credit (WOTC) agency for California employers. WOTC Work Opportunity Tax Credit
promotes the hiring of individuals who (edd.ca.gov/Jobs_and_Training/Work_
qualify as a member of a target group, Opportunity_Tax_Credit.htm)
and provides a federal tax credit to 1-866-593-0173
employers who hire these individuals.
WOTCSupport@edd.ca.gov
For the latest tax news and employer resources, visit
California Employer News and Updates
(edd.ca.gov/payroll_taxes/employer-news.htm).
Subscribe to the EDD no-fee email subscription services
(edd.ca.gov/about_edd/get_email_notices.htm).
edd.ca.gov 107 Taxpayer Assistance Center 1-888-745-3886
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GLOSSARY
Automated Clearing Any entity that operates as a clearing house for electronic debit or credit transactions
House (ACH) pursuant to an Electronic Funds Transfer agreement with an association that is a member
of the National ACH Association.
Base Period 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 what date the claim begins
and whether the claim is for Unemployment Insurance (UI) or for State Disability Insurance
(SDI). For UI, there are two types of base periods: the Standard Base Period (see “Base
Period, Standard [UI]”) and Alternate Base Period (see “Base Period, Alternate [UI]”). The
Alternate Base Period can ONLY be used to file a UI claim when there are not enough wages
earned in the Standard Base Period to file a monetarily valid UI claim. For SDI, a base period
covers 12 months and is divided into 4 consecutive quarters. The base period includes wages
subject to SDI tax which were paid approximately 5 to 18 months before the claim start date.
Base Period, Alternate The UI Alternate Base Period is the last four completed calendar quarters prior to the
(UI) beginning date of the claim. The Alternate Base Period can only be used if an individual
cannot monetarily establish a valid UI claim using the Standard Base Period.
Base Period Employer Employers who paid the earnings used to establish a UI claim and calculate an award.
Base Period, Standard The UI Standard Base Period is the first four of the last five completed calendar quarters
(UI) prior to the beginning date of the claim.
CCR The California Code of Regulations (govt.westlaw.com/calregs).
CUIAB The California Unemployment Insurance Appeals Board (cuiab.ca.gov).
California The laws administering California’s Unemployment Insurance (UI), Employment Training
Unemployment Tax (ETT), State Disability Insurance (SDI), and Personal Income Tax programs (PIT).
Insurance Code (CUIC) The CUIC is available at (leginfo.legislature.ca.gov/faces/codes.xhtml).
Cash Wages Checks, currency, and electronic debit payments paid to employees.
Charges Amounts deducted from an employer’s reserve account or amounts reimbursable for
state UI benefits paid to former employees.
Claim An application for Unemployment Insurance (UI), Disability Insurance (DI), or Paid Family
Leave (PFL) benefits.
• UI – The process that establishes a UI benefit year is called a new claim. Weekly
Continued Claim (DE 4581) forms are used by claimants to certify for UI benefits
during the benefit year. The EDD has two additional methods that unemployed
individuals may use to certify for UI benefits. Rather than filling out and submitting
a paper DE 4581 by mail, EDD Tele-Cert SMallows individuals to certify for benefits
using the phone and EDD UI Online SMallows individuals to certify for UI benefits
through the EDD website. After establishing a benefit year, claimants can interrupt
their claims for a variety of reasons. For example, the claimant may receive a
disqualification, obtain intervening employment, or fail to continue to certify for
benefits. The claimant may request to reopen an existing claim with a claim balance
during the benefit year.
• DI – The application that establishes a DI benefit period is called an initial claim.
Subsequent certifications on that DI claim are called continued claims. For each
separate period of disability, a new first initial claim must be filed.
• PFL – The application that establishes a PFL benefit period is called an initial
claim. Subsequent certifications on that claim are called continued claims. For each
separate period of family leave, an initial claim must be filed.
Claimant A California wage-earner who files a claim for UI, DI, or PFL benefits.
Contributions Employer’s payroll tax payments for UI and ETT. The CUIC refers to taxes under its
provision as “Contributions.” In this guide, “Contributions” are generally referred to as
“Taxes.”
edd.ca.gov 108 Taxpayer Assistance Center 1-888-745-3886
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Deposit An amount of money electronically submitted to the EDD with a Payroll Tax Deposit
(DE 88) through the e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_
Business.htm). For additional information, refer to page 57.
Determination A decision regarding a claimant’s eligibility to receive UI, DI, or PFL benefits.
Disability Insurance (DI) Benefits paid to eligible California workers who have a loss of wages when they are
unable to work due to a non-work-related illness, injury, or pregnancy. DI is a component
of the State Disability Insurance (SDI) program and funded through employee payroll
deductions.
Electronic Funds An electronic method of remitting state payroll tax payments. Funds are transferred from
Transfer (EFT) your bank account (with payment information) to the state’s account.
Employee A wage-earner in employment covered by the CUIC.
Employer Payroll Tax The Employment Development Department (EDD) eight-digit employer payroll tax
Account Number account number assigned to each registered employer (e.g., 000-0000-0). Always refer
to your EDD employer payroll tax account number when communicating with the EDD.
Omission of your employer payroll tax account number may result in delays in processing
payments, reporting documents, and correspondence.
Employment Taxes Unemployment Insurance (UI) Tax, Employment Training Tax (ETT), State Disability
Insurance (SDI) Tax, and Personal Income Tax (PIT) withholding.
Employment Training A special fund in the State Treasury for depositing into or transferring all ETT
Fund contributions collected from employers.
Employment Training Administers the employment training funds that are provided by the ETT to train and retain
Panel (ETP) workers with job skills needed by employers. Funds may be used to train unemployed
individuals or to train and retain current workers of businesses, primarily businesses facing
out-of-state competition.
Employment Training An employer-paid tax that funds jobs skills training for employees in targeted industries to
Tax (ETT) improve the competitiveness of California businesses. Employers subject to ETT pay
one-tenth of one percent (.001) of the first $7,000 in wages paid to each employee per year.
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. Beginning January 1, 2018, all employers
became subject to this requirement.
e-Services for Online tool that allows employers to manage their employer payroll tax accounts online. New
Business employers can register for an EDD employer payroll tax account number online. Registered
employers can access account and payment information, file most returns and reports,
including New Employee Registry (NER) and Independent Contractor Reporting (ICR), 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 coverage 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 submitting a late payment. “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.
edd.ca.gov 109 Taxpayer Assistance Center 1-888-745-3886
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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).
Labor Market California’s labor market information can help in making important business decisions.
Information (LMI) Data available includes occupational employment and wage data, industry employment,
labor force, occupation and industry projections of employment, and selected population
characteristics.
Mid-month Employment The number of full-time and part-time employees who worked during or received pay
subject to UI for the payroll period that includes the 12th day of the month.
Multiple Establishment An employer that maintains a business at more than one physical location and/or
Employer conducts more than one business activity/function at the same location and the
secondary locations have a total of 10 or more employees.
New Employee Registry California’s new hire reporting program. Employers are required to report their new or
(NER) rehired employees within 20 days of their start-of-work date. Refer to Report of New
Employee(s) (DE 34) on page 53.
North American The six-digit industry classification code that identifies the primary business functions of
Industry Classification an employer’s business. Visit the United States Census Bureau
System (NAICS) (census.gov/naics/) for more information.
Paid Family Leave (PFL) Benefits paid to eligible California workers who take time off work to care for a seriously
ill family member, to bond with a new child, or to participate in a qualifying event because
of a family member’s military deployment to a foreign country. PFL is a component of the
State Disability Insurance program and is funded through employee payroll deductions.
Payroll Period The frequency you pay wages: daily, weekly, bi-weekly (every two weeks), semi-monthly
(twice a month), etc.
Payroll Records Records providing an accurate account of all workers (employed, laid off, on a leave of
absence, or an independent contractor) and all payments made.
Payroll Taxes (State) Unemployment Insurance (UI) Tax, Employment Training Tax (ETT), State Disability
Insurance (SDI) Tax, and Personal Income Tax (PIT) withholding.
Personal Income Tax All wages paid during the periods that are subject to PIT, even if they are not subject to
(PIT) Wages PIT withholding. The PIT wages consist of all compensation for services by employees for
their employer and include, but are not limited to, salaries, fees, bonuses, commissions,
and payments in forms other than cash or checks. Wages in any form other than cash
or checks are measured by the fair market value of the goods, lodging, meals, or other
compensation given in payment for the employee’s services. The calendar year total
for PIT wages should agree with the amount reported on the individual’s Wage and Tax
Statement (Form W-2), in Box 16 (State Wages, Tips, etc.).
Personal Income Tax California PIT is withheld from employees’ pay based on the Employee’s Withholding
(PIT) Withholding Allowance Certificate (DE 4) on file with the employer.
Predecessor A previous owner registered with the EDD as an employer.
Prepayments (UI and UI or ETT taxes that an employer voluntarily sends to the EDD during a quarter even
ETT) though they are not due until the end of the quarter.
Registered Domestic A domestic partnership registered with the Secretary of State in California pursuant to
Partner section 297 of the Family Code.
Reimbursable Employer A public entity employer or certain types of nonprofit employers who are permitted by law
to be billed for UI benefits after they are paid to former employees.
Reserve Account A book account kept for each tax-rated employer to measure employment experience
and set the employer’s UI tax rate.
Ruling on Benefit Claim For tax-rated employers, a ruling is the EDD decision as to whether an employer’s reserve
account will be charged for UI benefits. The ruling is based on the reason for separation.
edd.ca.gov 110 Taxpayer Assistance Center 1-888-745-3886
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Ruling on Tax Question A decision, in writing, as to an employer’s subject status or tax liability in the stated
circumstances.
School Employees Fund A UI financing method available only to California public schools (kindergarten through
(SEF) 12 thgrade), California community colleges, and charter schools.
SDI Online An electronic claim filing system available to individuals filing for benefits and licensed
health professionals for submission of Disability Insurance (DI) and Paid Family
Leave (PFL) claim information. Employers, Voluntary Plan employers and third-party
administrators can use SDI Online to securely submit employee information (e.g., wages
earned, last day worked, etc.) for DI claims.
Service-Provider An individual (independent contractor) 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.
Service-Recipient Any business or government entity that, for California purposes, pays compensation to
a service-provider (independent contractor) or executes a contract for services to be
performed by an independent contractor in or outside of California.
Settlement Date The date an electronic payment transaction is completed and posted on the books of the
Federal Reserve Bank and the state’s bank account.
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 Number A nine-digit number issued to an individual by the Social Security Administration. All
(SSN) employee wage records and claim actions are filed under this number, rather than by
name.
State Disability The SDI program provides Disability Insurance (DI) and Paid Family Leave (PFL)
Insurance (SDI) benefits to eligible workers who need time off work because of disability or family leave.
DI benefits are paid to eligible California workers who have a loss of wages when
they are unable to work due to an illness, injury, or pregnancy. PFL benefits are paid
to eligible California workers who take time off work to care for a seriously ill family
member, to bond with a new child, or to participate in a qualifying event because of a
family member’s military deployment to a foreign country. The SDI program is funded by
mandatory payroll deductions 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.
Tax Return A Quarterly Contribution Return and Report of Wages (DE 9) or an Employer of
Household Workers Annual Payroll Tax Return (DE 3HW). Quarterly household
employers are required to file a tax return each quarter to reconcile California payroll
tax payments and the total subject wages reported. Annual household employers are
required to file the tax return annually.
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.
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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.
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 for those employees covered by the VP.
Instead, if the plan is paid by employees, the employer holds the VP contributions in a
separate trust fund to pay the DI or PFL benefits and approved expenses. The employer
may enlist a greater benefit by paying for the plan rather than having the employees pay
for it. The VP employer pays a quarterly assessment to the EDD based on the taxable
wages of employees participating in the plan and other factors.
Wage Detail A Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C) filed each
quarter listing employee(s) full name, SSN, total subject wages, PIT wages, and PIT
withholding.
Wage Report A Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C) or
an Employer of Household Worker(s) Quarterly Report of Wages and Withholdings
(DE 3BHW). Both quarterly and annual household employers are required to file a wage
report each quarter to report employee wage and payroll tax withholding information.
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 Protects employees, their families, and communities by requiring that employers give a
Retraining Notification 60-day notice to the affected employees and both state and local representatives prior to
(WARN) Act a plant closing or mass layoff.
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INDEX
TOPIC
Address Change........................................................................................................................................................ 70
Adjustments............................................................................................................................................................... 60
Alternate Base Period................................................................................................................................................ 92
Appeal Rights – Unemployment Insurance (UI) Claims ............................................................................................ 89
Back Pay Award ........................................................................................................................................................ 91
Benefit Audits............................................................................................................................................................. 90
Benefits:
Paid Family Leave (PFL) .................................................................................................................................... 94
Disability Insurance (DI)...................................................................................................................................... 94
Unemployment Insurance (UI) ............................................................................................................................ 84
Billings – Reimbursable UI Method ........................................................................................................................... 80
Bonuses .................................................................................................................................................................... 15
Business Name Change............................................................................................................................................ 70
Claim Notices:
Notice to Employer of Disability Insurance Claim Filed (DE 2503) ..................................................................... 94
Notice to Employer of Paid Family Leave Claim Filed (DE 2503F) .................................................................... 94
Notice of Unemployment Insurance Claim Filed (DE 1101CZ) ........................................................................... 86
Notice of Wages Used for Unemployment Insurance (UI) Claim (DE 1545)....................................................... 86
Closing Business ....................................................................................................................................................... 70
Commissions ............................................................................................................................................................. 15
Cost-of-Benefits (Reimbursable) Method .................................................................................................................. 80
Deposit:
Correcting Payroll Tax Deposits .......................................................................................................................... 60
Delinquent........................................................................................................................................................... 59
Due Dates ........................................................................................................................................................... 59
Requirements ..................................................................................................................................................... 58
Disability Insurance:
Self-Employed Benefits ...................................................................................................................................... 95
State Disability Insurance (SDI) Program ........................................................................................................... 94
Voluntary Plan..................................................................................................................................................... 95
Discharge .................................................................................................................................................................. 84
e-Services for Business ............................................................................................................................................ 50
Elective Coverage (Disability Insurance) ................................................................................................................... 95
Employee – Definition................................................................................................................................................ 8
Employee or Independent Contractor........................................................................................................................ 8
Employer:
Definition ............................................................................................................................................................. 7
Employer Rights.................................................................................................................................................. 78
How to Register .................................................................................................................................................. 7
When Do I Become an Employer? ...................................................................................................................... 7
Employer Notices:
Notice of Determination/Ruling (DE 1080EZ) ..................................................................................................... 88
Notice to Employer of Disability Insurance Claim Filed (DE 2503) ..................................................................... 94
Notice to Employer of Paid Family Leave (PFL) Claim Filed (DE 2503F) .......................................................... 94
Notice of Unemployment Insurance Claim Filed (DE 1101CZ) ........................................................................... 86
Notice of Modification (DE 1080M) ..................................................................................................................... 88
Notice of Potential Increased Liability for Training Extension Benefits (DE 1545TE) ......................................... 87
Notice of Wages Used for Unemployment Insurance (UI) Claim (DE 1545)....................................................... 86
Employer Obligations for the Form W-4 or DE 4 ....................................................................................................... 14
Employer-Sponsored Voluntary Plan......................................................................................................................... 95
Employer UI Contribution Rates ................................................................................................................................ 80
Employment and Training Services ........................................................................................................................... 96
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INDEX (cont.)
TOPIC
Employment Training:
Funding ............................................................................................................................................................... 96
Panel (ETP) ........................................................................................................................................................ 96
Tax (ETT) ............................................................................................................................................................ 9
Entity Change ............................................................................................................................................................ 71
Escrow Clearance ..................................................................................................................................................... 71
Estimated Payments.................................................................................................................................................. 15
Experience Rating ..................................................................................................................................................... 80
False Statement Penalty ........................................................................................................................................... 90
Federal Unemployment Tax Act (FUTA) Certification ................................................................................................ 81
Firing an Employee.................................................................................................................................................... 85
Notice.................................................................................................................................................................. 74
Forms:
Alternate Filing Options....................................................................................................................................... 50
Due Dates ........................................................................................................................................................... 6
How to Obtain Forms and Publications............................................................................................................... 117
Employee’s Withholding Allowance Certificate (DE 4)........................................................................................ 13
Payroll Tax Deposit (DE 88)................................................................................................................................ 57
Quarterly Contribution Return and Report of Wages (DE 9)............................................................................... 62
Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C) .................................................... 63
Quarterly Contribution and Wage Adjustment Form (DE 9ADJ) ......................................................................... 65
Report of New Employee(s) (DE 34) .................................................................................................................. 53
Report of Independent Contractor(s) (DE 542)................................................................................................... 55
Fraud Prevention, Detection, Reporting, and UI Rate Manipulation ......................................................................... 83
Income Tax:
California Personal Income Tax (PIT) Withholding Tables .................................................................................. 18
Independent Contractor or Employee........................................................................................................................ 8
Independent Contractor Reporting Requirements..................................................................................................... 55
Interstate Benefit Audit .............................................................................................................................................. 90
Labor Market Information .......................................................................................................................................... 99
Layoff:
Rapid Response Team........................................................................................................................................ 75
Worker Adjustment and Retraining Notification (WARN) .................................................................................... 74
Written Notice Requirements .............................................................................................................................. 75
Leave of Absence ...................................................................................................................................................... 72
Lodging...................................................................................................................................................................... 12
Marital Status for Personal Income Tax (PIT) Reporting ........................................................................................... 13
Meals ......................................................................................................................................................................... 12
Multiple Location and/or Function Employers............................................................................................................ 99
Multiple Worksite Report (BLS 3020) ....................................................................................................................... 99
New Employee Registry (NER) ................................................................................................................................. 53
New Employer:
Employer Training Tax (ETT) Rate...................................................................................................................... 9
Unemployment Insurance (UI) Tax Rate............................................................................................................. 9
No Longer Have Employees...................................................................................................................................... 70
Nonresident Employees ............................................................................................................................................ 16
Notice of Unemployment Insurance Claim Filed (DE 1101CZ) ................................................................................. 86
Notice of Determination (DE 1080EZ) ....................................................................................................................... 88
Notice of Wages Used For Unemployment Insurance (UI) Claim (DE 1545)............................................................ 87
Notice to Employer of Disability Insurance (DI) Claim Filed (DE 2503)..................................................................... 94
Notices for Employees............................................................................................................................................... 72
Obtaining an EDD Employer Payroll Tax Account ..................................................................................................... 7
Offers in Compromise (OIC)...................................................................................................................................... 79
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INDEX (cont.)
TOPIC
Office of the Taxpayer Rights Advocate..................................................................................................................... 78
Ordering Forms and Publications .............................................................................................................................. 117
Overpayments:
Correcting Previously Filed DE 9 ........................................................................................................................ 62
Correcting Prior DE 88........................................................................................................................................ 60
Paid Family Leave (PFL) .................................................................................................................................... 94
Partial Unemployment Insurance (UI) Claims ........................................................................................................... 93
Payroll Tax Deposit (DE 88) ...................................................................................................................................... 57
Personal Income Tax (PIT):
Marital Status ...................................................................................................................................................... 13
Schedules ........................................................................................................................................................... 17
Supplemental Wages .......................................................................................................................................... 15
Wages ................................................................................................................................................................. 11
Withholding ......................................................................................................................................................... 13
Plant Closures ........................................................................................................................................................... 75
Protests:
Notice of Unemployment Insurance Claim Filed (DE 1101CZ)........................................................................... 87
Notice of Wages Used for Unemployment Insurance (UI) Claim (DE 1545)....................................................... 87
Purchase a Business................................................................................................................................................. 71
Quarterly Contribution and Wage Adjustment Form (DE 9ADJ)................................................................................ 65
Quarterly Contribution Return and Report of Wages (DE 9) ..................................................................................... 62
Correcting Previously Filed DE 9 ........................................................................................................................ 62
Due Dates ........................................................................................................................................................... 62
Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C)........................................................... 63
Correcting Previously Filed DE 9C ..................................................................................................................... 64
Due Dates ........................................................................................................................................................... 63
Quarterly Estimated Payments.................................................................................................................................. 15
Quitting Business....................................................................................................................................................... 70
Reopen Your Payroll Tax Account ............................................................................................................................. 71
Recordkeeping .......................................................................................................................................................... 77
Registration for EDD Employer Payroll Tax Account Number:
When Do You Become an Employer?................................................................................................................. 7
How to Register .................................................................................................................................................. 7
Reimbursable Method of Paying for UI ..................................................................................................................... 80
Report of New Employees(s) (DE 34) ....................................................................................................................... 53
Report of Independent Contractor(s) (DE 542) ......................................................................................................... 55
Required Postings, Notices, and Pamphlets ............................................................................................................. 72
Reserve Account:
Statement of Charges to Reserve Account (DE 428T) ....................................................................................... 92
Experience Rating............................................................................................................................................... 80
Notice of Contribution Rates and Statement of Unemployment Insurance (UI) Reserve Account (DE 2088).... 81
Reserve Account Transfers (Successor Employers)........................................................................................... 81
Rulings:
Notice of Unemployment Insurance Claim Filed (DE 1101CZ)........................................................................... 86
Notice of Wages Used for Unemployment Insurance (UI) Claim (DE 1545)....................................................... 86
Sale of Business........................................................................................................................................................ 71
School Employees Fund Method of Paying for UI Benefits....................................................................................... 80
Settlements Office ..................................................................................................................................................... 79
Severance Pay .......................................................................................................................................................... 15
SIDES........................................................................................................................................................................ 86
State Disability Insurance (SDI):
Benefits ............................................................................................................................................................... 94
Elective Coverage............................................................................................................................................... 95
Employer Responsibilities................................................................................................................................... 94
Self-Employed Benefits....................................................................................................................................... 95
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INDEX (cont.)
TOPIC
Voluntary Plan .................................................................................................................................................... 95
Who Pays?.......................................................................................................................................................... 9
Stock Options ............................................................................................................................................................ 15
Subject Wages .......................................................................................................................................................... 11
Successor Employer.................................................................................................................................................. 72
Supplemental Wage Payments ................................................................................................................................. 15
Tax Deposits:
Delinquent Deposits............................................................................................................................................ 59
Deposit Requirements ........................................................................................................................................ 58
Electronic ............................................................................................................................................................ 59
Tax Offices (Listing) .................................................................................................................................................. 3
Tax Rate:
Experience Rating............................................................................................................................................... 80
How Your Unemployment Insurance (UI) Tax Rate Is Determined ..................................................................... 80
Notice of Contribution Rates and Statement of UI Reserve Account (DE 2088) ................................................ 81
Taxes:
Who Is an Employee........................................................................................................................................... 8
Withholding Allowances and Exemptions ........................................................................................................... 13
Taxpayer Advocate Office.......................................................................................................................................... 78
Tips for Reducing Your Unemployment Insurance (UI) Tax Rate .............................................................................. 82
Trade Adjustment Assistance .................................................................................................................................... 97
Transfer of Business, Successor Employer............................................................................................................... 71
Underground Economy.............................................................................................................................................. 10
Unemployment Insurance (UI):
Standard Base Period (SBP) and Alternate Base Period (ABP) ........................................................................ 92
Benefits ............................................................................................................................................................... 84
Employer Responsibilities................................................................................................................................... 86
Rate .................................................................................................................................................................... 81
Who Pays?.......................................................................................................................................................... 9
Voluntary Plan ........................................................................................................................................................... 95
Wages Subject to:
Personal Income Tax (PIT).................................................................................................................................. 11
State Disability Insurance (SDI) Tax.................................................................................................................... 9
Unemployment Insurance (UI) Tax...................................................................................................................... 9
WARN........................................................................................................................................................................ 74
Withholding Deposit:
Delinquent........................................................................................................................................................... 59
Electronic ............................................................................................................................................................ 59
Marital Status ...................................................................................................................................................... 13
Requirements ..................................................................................................................................................... 58
Withholding Schedules Personal Income Tax (PIT) .................................................................................................. 17
Withholding Statements:
Employee’s Withholding Allowance Certificate:
Federal (Form W-4) ...................................................................................................................................... 13
California (DE 4) ........................................................................................................................................... 13
Information Return (Form 1099) ......................................................................................................................... 69
Wage and Tax Statement (Form W-2) ................................................................................................................ 69
Work Opportunity Tax Credit (WOTC) ....................................................................................................................... 98
Work Sharing Program .............................................................................................................................................. 93
Worker Adjustment and Retraining Notification (WARN)........................................................................................... 74
Workers’ Compensation Insurance............................................................................................................................ 95
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INSTRUCTIONS FOR ORDERING FORMS AND PUBLICATIONS
The EDD provides easy access to its forms, publications, and information sheets by phone or online on the EDD
website (edd.ca.gov). If you require additional assistance, contact the Taxpayer Assistance Center at 1-888-745-3886.
By Phone: For quantities of 25 or more, call 1-916-322-2835.
For quantities of 24 or less, call 1-888-745-3886.
Download Forms
Online Forms and Publications (edd.ca.gov/payroll_taxes/forms_and_publications.htm)
Order Forms Online
EDD Forms (edd.ca.gov/forms/)
Request Annual Mailing Employer Guide (eddservices.edd.ca.gov/tap/open/annualguide/_/#1)
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 (PDF) (edd.ca.gov/pdf_pub_ctr/de44.pdf). To receive a paper guide each
year or to stop receiving a paper guide, complete your Employer’s Guide Mailing Preference (eddservices.edd.ca.gov/
tap/open/annualguide/_/#1).
Reminder: All employers are required to electronically submit employment tax returns, wage reports, and payroll tax
deposits to the Employment Development Department (EDD). Refer to page 49 for information on the e-file and e-pay
mandate and related noncompliance penalties.
For the latest tax news and employer resources, visit
California Employer News and Updates
(edd.ca.gov/payroll_taxes/employer-news.htm).
Subscribe to the EDD no-fee email subscription services
(edd.ca.gov/about_edd/get_email_notices.htm).
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