CALIFORNIA
2023
EMPLOYER’S GUIDE
DE 8829 Rev. 43 (1-23) (INTERNET) Page 1 of 66 CU
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CALIFORNIA
2023
EMPLOYER’S GUIDE
DE 8829 Rev. 43 (1-23) (INTERNET) Page 1 of 66 CU
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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 the e-file and e-pay mandate (edd.ca.gov/Payroll_Taxes/E-file_and_E-pay_Mandate_
for_Employers.htm) or refer to page 14.
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 15.
State Information Data Exchange System (SIDES): Employers and third-party administrators can elect
to electronically receive and respond to EDD notices using SIDES. For more information, visit SIDES
(edd.ca.gov/Unemployment/SIDES.htm).
New Employee Registry (NER): The law requires all employers to report all newly hired or rehired
employees to the NER within 20 days of their start-of-work date. For more information, visit NER FAQs
(edd.ca.gov/Payroll_Taxes/New_Hire_Reporting.htm) or refer to page 39.
Payroll Tax Seminars: The EDD partners with other agencies to provide information you need
to comply with California payroll tax laws. For more information, visit Payroll Tax Seminars
(Seminars.edd.ca.gov/Payroll_Tax_Seminars).
Get E-mail Notices: Subscribe to our email lists for the latest news about EDD programs and services
including news and announcements, recently added forms and publications, and events. Visit our E-mail
Notices webpage (edd.ca.gov/about_edd/Get_Email_Notices.htm) to subscribe..
Quick and Easy Access to Tax Help, Forms, and Publications: Refer to page 1 for instructions on how to
obtain payroll tax forms and assistance online, by phone, or by visiting one of our Employment Tax Offices.
Fraud Prevention, Detection, and Reporting: For information on how to prevent and detect fraud, visit
Help Fight Fraud (edd.ca.gov/en/about_edd/fraud.htm). Refer to page 51 for information about UI fraud.
California Employer News and Updates: Find the latest tax news, annual updates, and resources to
support you and your business. Subscribe to receive emails about employment and payroll tax updates. For
more information, visit Employer News and Updates (edd.ca.gov/payroll_taxes/employer-news.htm).
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 .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
You are not required to withhold PIT from household employees’ wages. However, if you agree to
withhold PIT for any of your household employees, PIT withholding is based on the amount of wages
paid, the number of withholding allowances claimed by the employee, and the payroll period. For
additional information on PIT Withholding, refer to pages 12 and 13, or visit Rates and Withholding
(edd.ca.gov/Payroll_Taxes/Rates_and_Withholding.htm).
DE 8829 Rev. 43 (1-23) (INTERNET) Page 2 of 66 CU
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California Labor and Workforce Development Agency
CALIFORNIA LABOR AND WORKFORCE DEVELOPMENT AGENCY Gavin Newsom, Governor
Gavin Newsom
Governor
Dear Household Employer:
The Employment Development Department (EDD) understands that as a household
employer, time is of the essence, which is why the EDD is committed to providing you
with the tools and resources to meet your payroll tax obligations.
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!
For more information about our services, visit the EDD website (edd.ca.gov). You can
also visit one of our regional Tax Offices (edd.ca.gov/office_locator/) to discuss your
account in person. If you would like to speak to an EDD representative,contact our
Taxpayer Assistance Center at 1-888-745-3886, where our dedicated professionals are
ready to assist you with your payroll tax questions.
Sincerely,
NANCY FARIAS
Director
PO Box 826880 •Sacramento, CA 94280-0001 •edd.ca.gov
DE 8829 Rev. 43 (1-23) (INTERNET) Page 3 of 66 CU
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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).
WE HAVE SEMINARS TO HELP YOU SUCCEED!
For more information, visit Payroll Tax Seminars
(Seminars.edd.ca.gov/Payroll_Tax_Seminars).
DE 8829 Rev. 43 (1-23) (INTERNET) Page 4 of 66 CU
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TABLE OF CONTENTS
Payroll Tax Help, Forms, and Publications ........................................................................................... 1
2023 Calendar of Filing Dates ................................................................................................................ 2
Seminars .................................................................................................................................................. 3
Who Is a Household Employer? ............................................................................................................. 3
Who Is a Household Employee? ............................................................................................................ 4
When Should You Register as an Employer? ....................................................................................... 5
How to Register as an Employer ............................................................................................................ 6
TABLE OF CONTENTS
Posting Requirements .................................................................................................................... 6
Notices and Pamphlets .................................................................................................................. 7
Employers of Household Workers Registration and Update Form (DE 1HW) Sample ................. 8
What Are Wages? .................................................................................................................................... 10
What Are Subject Wages? ............................................................................................................. 10
What Are Personal Income Tax Wages? ....................................................................................... 10
Are Subject Wages and PIT Wages the Same? ............................................................................ 10
Values of Meals and Lodging ......................................................................................................... 11
What Are Payroll Taxes? .......................................................................................................................... 12
2023 Payroll Tax Table .............................................................................................................................. 12
Withholding California Personal Income Tax ................................................................................. 13
Electronic Filing and Payment Requirements
E-file and E-pay Mandate for Employers .......................................................................................... 14
Online Services
e-Services for Business ................................................................................................................. 15
Are You an Annual or Quarterly Household Employer? ....................................................................... 16
How to Report and Pay Your Taxes ............................................................................................... 16
Annual Household Employers ................................................................................................................ 17
Overview ........................................................................................................................................ 17
Employer of Household Worker Election Notice (DE 89):
Overview .................................................................................................................................. 17
Sample ..................................................................................................................................... 18
Employer of Household Workers Quarterly Report of Wages and Withholdings (DE 3BHW):
Overview ............................................................................................................................ 19
Employer of Household Workers Annual Payroll Tax Return (DE 3HW):
Overview ............................................................................................................................ 20
Employer Paid Taxes for Employees .............................................................................................. 21
2023 Due Dates and Delinquency Dates ....................................................................................... 22
Correcting Previously Filed Reports .............................................................................................. 23
No Longer Paying Wages .............................................................................................................. 24
When to Change From an Annual Household Employer to a Quarterly Household Employer ...... 24
edd.ca.gov i Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 5 of 66 CU
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| TABLE OF CONTENTS TABLE OF CONTENTS Quarterly Household Employers Overview ........................................................................................................................................ 25 Quarterly Contribution Return and Report of Wages (DE 9): Overview .................................................................................................................................. 26 Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C): Overview .................................................................................................................................. 27 Payroll Tax Deposit (DE 88): Overview .................................................................................................................................. 28 How to Calculate Taxable Wages .................................................................................................. 29 How to Compute: State Disability Insurance Withholding .................................................................................... 30 Unemployment Insurance Tax and Employment Training Tax ................................................. 31 2023 Due Dates and Delinquency Dates ....................................................................................... 32 Correcting Previously Submitted Payroll Tax Deposit (DE 88) ....................................................... 34 Correcting Previously Filed Reports .............................................................................................. 35 Quarterly Contribution and Wage Adjustment Form (DE 9ADJ) Sample ....................................... 36 No Longer Paying Wages .............................................................................................................. 38 Reporting New Employees ..................................................................................................................... 39 Report of New Employee(s) (DE 34) Sample ................................................................................ 40 Federal Wage and Tax Statement (Form W-2) ...................................................................................... 41 Earned Income Tax Credit Information Act .................................................................................... 42 What Payroll Records Must Be Kept? ................................................................................................... 43 Employee Earnings Record Sample .............................................................................................. 44 Unemployment Insurance........................................................................................................................ 45 Your Reserve Account ................................................................................................................... 45 Notices ........................................................................................................................................... 45 Notices of Determination, Ruling, or Modification .......................................................................... 46 Appeal Rights ................................................................................................................................ 47 Statement of Charges to Reserve Account (DE 428T) .................................................................. 48 Notice of Contribution Rates and Statement of UI Reserve Account (DE 2088) ........................... 48 State Disability Insurance ....................................................................................................................... 49 Disability Insurance ........................................................................................................................ 49 Paid Family Leave ......................................................................................................................... 49 Employer Claim Notices ................................................................................................................ 49 SDI Online ..................................................................................................................................... 49 Additional Resources............................................................................................................................... 50 Other EDD Programs and Services ............................................................................................... 50 Other Agencies You May Contact .................................................................................................. 51 Help Us Fight Fraud ....................................................................................................................... 51 The EDD’s Commitment to You ..................................................................................................... 52 Employer Rights ............................................................................................................................. 52 Office of the Taxpayer Rights Advocate ......................................................................................... 53 Protecting Your Privacy .................................................................................................................. 53 Glossary ................................................................................................................................................... 54 edd.ca.gov ii Taxpayer Assistance Center 1-888-745-3886 DE 8829 Rev. 43 (1-23) (INTERNET) Page 6 of 66 CU |
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PAYROLL TAX HELP, FORMS AND PUBLICATIONS
e-Services for Business
• Fulfills the e-file and e-pay Walk-In Offices
mandate.
• Manage your employer For information and advice about your payroll tax
payroll tax account online. responsibilities, visit your local Employment Tax Office from
8 a.m. to 5 p.m., Pacific Time, Monday through Friday:
• Register as an employer.
• File tax returns and wage Anaheim ....................2099 S. State College Blvd., #401, 92806
reports. Phone Number: 1-888-745-3886
• Pay deposits and liabilities. Fresno .......................1050 O Street, 93721
Phone Number: 1-888-745-3886
• Make address changes.
Oakland .....................7677 Oakport Street, Suite 400, 94621
Register online using e-Services for Business Phone Number: 1-888-745-3886
(edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm). Redding ..................... 1325 Pine Street, 96001
Phone Number: 1-888-745-3886
Sacramento ............... 3321 Power Inn Road, Suite 220, 95826
Phone Number: 1-888-745-3886
San Bernardino ......... 658 East Brier Drive, Suite 300, 92408
Online Phone Number: 1-888-745-3886
Visit the EDD website
San Diego .................10636 Scripps Summit Ct., Suite 202, 92131 PAYROLL TAX HELP,
(edd.ca.gov). Phone Number: 1-888-745-3886
FORMS AND PUBLICATIONS
San Jose ................... 906 Ruff Drive, 95110
Phone Number: 1-888-745-3886
• Obtain answers to frequently asked questions Santa Fe Springs ...... 10330 Pioneer Blvd., Suite 150, 90670
(edd.ca.gov/payroll_taxes/faqs.htm). Phone Number: 1-888-745-3886
• Obtain information on Payroll Tax Seminars Van Nuys ................... 6150 Van Nuys Blvd., Room 210, 91401
(Seminars.edd.ca.gov/Payroll_Tax_Seminars). Phone Number: 1-888-745-3886
To find an office near you, visit the
• Obtain information for tax professionals Office Locator (edd.ca.gov/office_locator/).
(edd.ca.gov/payroll_taxes/tax_practitioners.htm).
• Send comments and questions to the EDD online at Self-Service Offices
Ask EDD (edd.ca.gov/about_edd/contact_edd.htm). Tax forms and a no-cost direct-line phone are available
from 8 a.m. to 5 p.m., Pacific Time, Monday through
Friday at our self-service offices.
Visit the California Tax Service Center (taxes.ca.gov)
for federal and California tax information for businesses Bakersfield ............... 1800 30th Street, Suite 240, 93301
and individuals. Eureka ..................... 409 K Street, Suite 202, 95501
Modesto ................... 3340 Tully Road, Suite E-10, 95350
San Francisco.......... 745 Franklin Street, Suite 400, 94102
Santa Rosa .............. 50 D Street, Room 100, 95404
Vallejo ...................... 1440 Marin Street, Suite 114, 94590
Ventura .................... 4820 McGrath Street, Suite 200, 93003
Forms and Publications
Download and order forms, instructions, and publications
Phone at Forms (edd.ca.gov/forms/).
Toll-free from the U.S. or Canada: 1-888-745-3886
We Want to Hear From You.
Hearing impaired: 1-800-547-9565 Please let us know how we can improve this guide to
better meet your needs. Please send your comments and
Outside the U.S. or Canada: 1-916-464-3502 suggestions to:
Staff are available from 8 a.m. to 5 p.m., Pacific Time, Employment Development Department
Monday through Friday, to answer your questions. Publications and Marketing Services Group, MIC 93
PO Box 826880
Sacramento, CA 94280-0001
edd.ca.gov 1 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 7 of 66 CU
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2023 CALENDAR OF FILING DATES
Delinquent if Not
Postmarked or
Received by Annual Household Employers Quarterly Household Employers
January 31, 2023 • File an Employer of Household • Submit Payroll Tax Deposit
Worker(s) Quarterly Report (DE 88) payment for quarter
of Wages and Withholdings ending December 31, 2022.
(DE 3BHW) for quarter ending
December 31, 2022. • File a Quarterly Contribution
Return and Report of Wages
• File an Employer of Household (DE 9) and a Quarterly
Worker(s) Annual Payroll Tax Contribution Return and Report
Return (DE 3HW) with payment of Wages (Continuation) (DE 9C)
for 2022. for quarter ending
December 31, 2022.
• Provide a Wage and Tax
Statement (Form W-2) and • Provide a Form W-2 and Earned
an Earned Income Tax Credit Income Tax Credit (EITC)
(EITC) notification to employees notification to employees for
for 2022. Refer to page 42 for 2022. Refer to page 42 for
additional information. additional information.
May 1, 2023 • File DE 3BHW for quarter ending • Submit DE 88 payment for
March 31, 2023. quarter ending March 31, 2023.
OF FILING DATES 2023 CALENDAR
• File a DE 9 and DE 9C for quarter
ending March 31, 2023.
July 31, 2023 • File DE 3BHW for quarter ending • Submit DE 88 payment for
June 30, 2023. quarter ending June 30, 2023.
• File DE 9 and DE 9C for quarter
ending June 30, 2023.
October 31, 2023 • File DE 3BHW for quarter ending • Submit DE 88 payment
September 30, 2023. for quarter ending
September 30, 2023.
• File DE 9 and DE 9C for quarter
ending September 30, 2023.
January 31, 2024 • File DE 3BHW for quarter ending • Submit DE 88 payment for
December 31, 2023. quarter ending
December 31, 2023.
• File DE 3HW with payment for
2023. • File DE 9 and DE 9C for quarter
ending December 31, 2023.
• Provide Form W-2 to employees
for 2023. Refer to page 41 for • Provide Form W-2 to employees
additional information. for 2023. Refer to page 41 for
additional information.
edd.ca.gov 2 Taxpayer Assistance Center 1-888-745-3886
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WHO IS A HOUSEHOLD EMPLOYER?
SEMINARS TO HELP EMPLOYERS SUCCEED
The Employment Development Department (EDD) offers no-fee seminars, to help employers
understand and comply with California’s payroll tax laws.
The EDD offers seminars on the following topics:
• State Basic Payroll Tax Seminar. • Employment Status Tax Seminar.
• Federal/State Basic Payroll Tax Seminar. • Cannabis Industry and State Payroll
• State Labor Law and Payroll Tax Tax Seminar.
Seminar. • AB 5 Motor Carrier Worker
Classification Online Webinar.
The EDD and the Department of Industrial
The EDD and the Internal Revenue Service (IRS)
Relations’ Division of Labor Standards
jointly offer seminars on:
Enforcement jointly present classes on:
• Federal/State payroll reporting and • Wage and hour law application.
Witholding 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.
Additional information about seminars and tutorials is available online at Payroll Tax Seminars
(Seminars.edd.ca.gov/Payroll_Tax_Seminars).
WHO IS A HOUSEHOLD EMPLOYER?
You may be considered a household employer if you hire someone to work as your employee in or around
your home for the benefit of your personal household and not your business. If you employ one or more
employees for your business, you will need to register as a commercial employer.
Household employment may occur in a variety of settings, such as a:
• Private home • Summer or winter home • Local chapter of a college
• Apartment • Condominium fraternity or sorority
• Boat or mobile home • Local college club • Hotel room (when the worker is
employed by you, not the hotel)
Private homes include fixed places of residence, apartments, and hotel rooms in which an individual or
family reside. Private homes do not include premises used primarily as a business enterprise, such as EMPLOYER?
a residential care home, boarding house, hotel, hospital, etc., unless the workers are employed by the
resident of such a facility and not by the business.
WHO IS A HOUSEHOLD
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WHO IS A HOUSEHOLD EMPLOYEE?
WHO IS A HOUSEHOLD
WHO IS A HOUSEHOLD EMPLOYEE?
EMPLOYEE?
The worker is your employee if you control what work is done and how it is done. If the worker is your
employee, it does not matter whether the work is temporary, full-time, or part-time, or that you hired the worker
through an agency.
The worker is an independent contractor, and not your employee, if only the worker controls how the work is
done. An independent contractor usually provides his or her own tools and offers services to the general public
in an independent business.
Refer to the table below for a list of workers who are or are not household employees. This list is not intended to
be a complete list of household employees.
These Are These Are Not
1
Household Employees Household Employees
• Au pair • Carpenters
1
• Baby-sitters • Electricians
• Butlers • Librarians
• Caretakers • Musicians
• Chauffeurs • Nurses leased from a nursing registry
2
• Cooks • Painters
• Crews of private yachts • Plumbers
3
• Gardeners • Private secretaries
• Governesses/governors • Tutors
• Home health care workers • Workers from a temporary services, leasing or
5
• Housekeepers employment agency
• Janitors • Workers provided by independent businesses
• Laundry workers (for example: a janitorial service, catering
service, gardening service, or pool
• Maids
maintenance service)
• Pilots of private airplanes for family use
4
• Pool maintenance persons
• Valets
2
• Waiters/waitresses
Family Employment – Spouse, parents, minor children (under 18 years old), and registered domestic partner are excluded from
employment for Unemployment Insurance, Employment Training Tax, and State Disability Insurance reporting and withholding
purposes. Those providing services as household employees are excluded from Personal Income Tax (PIT) withholding, but
employers are required to report the wages that are subject to PIT. For additional information, refer to Information Sheet: Family
Employment (DE 231FAM) and Information Sheet: Specialized Coverage (Elective Coverage for Exempt Workers) (DE 231SC)
available online at Forms and Publications (edd.ca.gov/payroll_taxes/forms_and_publications.htm).
1
A worker who performs childcare services for you in his or her home generally is not your employee.
2
Unless employed by a catering service.
3
Unless employed by a gardening service.
4
Unless employed by a pool maintenance service.
5
As long as the requirements of section 606.5 and 687.2 of the California Unemployment Insurance Code
(CUIC) are met.
Refer to the Information Sheet: Household Employment (DE 231L) (PDF) (edd.ca.gov/pdf_pub_ctr/de231l.
pdf) online for additional information regarding household employment.
You may also contact the Taxpayer Assistance Center at 1-888-745-3886 to obtain a DE 231L or
for assistance in determining whether the people who work for you are independent contractors or
household employees.
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WHEN SHOULD YOU REGISTER AS AN EMPLOYER?
WHEN SHOULD YOU REGISTER AS AN EMPLOYER?
You must register with the Employment Development Department (EDD) within 15 days after you have paid
$750 or more in total cash wages in a calendar quarter to one or more people who work as your household
employee. Refer to page 4 for additional information on who is a household employee.
Cash wages include payment for services by check or cash. Do not include noncash wages, such as meals
and lodging, when calculating whether you have reached $750 in cash wages. Refer to What Are Wages?
on page 10 for a complete definition of cash and noncash wages.
Once you meet the $750 in cash wage limit, you must also then include all cash and noncash payments
as subject wages. The amount of subject wages you pay in a calendar quarter will determine the employer
payroll taxes you are required to withhold and pay.
If You Pay (in a Quarter) Then
Withhold State Disability Insurance (SDI) for the
$750 to $999.99 remainder of the current year and through the following
year, even if wages fall below $750 in a quarter.
$1,000 or more Withhold SDI and pay Unemployment Insurance (UI)
and Employment Training Tax (ETT) for the remainder of AS AN EMPLOYER?
the current year and through the following year, even if
wages fall below $1,000 in a quarter. WHEN SHOULD YOU REGISTER
The following examples will help clarify when you must register with the EDD, begin reporting employee
wages and withholdings, and pay employer payroll taxes:
Cash Meals and
Am I Required to Register?
Wages Lodging
$700 $149 You are not required to register, report employee wages, or withhold/pay any
California payroll taxes because the cash wage limit of $750 in a quarter has
not been met (the value of meals and lodging is not included in reaching the
$750 cash wage limit).
$750 $75 You must register, report employee wages, and withhold SDI on the entire
$825. You are not required to pay UI and ETT because the cash wage limit of
$1,000 in a quarter has not been met.
$900 $150 You must register, report employee wages, and withhold SDI on the entire
$1,050. You are not required to pay UI and ETT because the cash wage limit
of $1,000 in a quarter has not been met (the value of meals and lodging is not
included in reaching the $1,000 cash wage limit).
$1,000 $100 You must register, report employee wages, pay UI and ETT, and withhold
SDI on the entire $1,100 because you have met the $1,000 cash wage limit
in a quarter.
You are required to report employee wages that are subject to California Personal Income Tax (PIT), but
you are not required to withhold PIT unless you and your employee(s) agree to do so. Refer to page 10 for
information regarding PIT wages and page 13 for information about PIT withholding.
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HOW TO REGISTER AS AN EMPLOYER
HOW TO REGISTER AS AN EMPLOYER
You must register with the Employment Development Department (EDD) as a household employer for
California payroll tax purposes when you have paid cash wages totaling $750 or more in one calendar
quarter to one or more people who work as your household employee.
ACTION REQUIRED: Review the filing requirements for each type of household employer on page 16 to
assist in determining whether you should register as an annual or quarterly household employer.
• If you are a household employer and plan to pay $20,000 or less in cash and noncash wages in one
calendar year, you will be initially registered as a Quarterly household employer and you must complete
an Employer of Household Worker Election Notice (DE 89) (PDF) (edd.ca.gov/pdf_pub_ctr/de89.pdf) in
order to be converted to an Annual household employer. You will be required to complete a tax return
and pay taxes annually and submit wage reports on a quarterly basis.
• If you are a household employer and plan to pay more than $20,000 in cash and noncash wages, you
will be registered as a quarterly household employer. You will be required to complete a tax return,
wage report, and pay taxes on a quarterly basis.
• If you are a household employer and plan to pay $20,000 or less in cash and noncash wages in a
calendar year and do not elect to be an annual household employer, your account will be registered as
a quarterly household employer.
ACTION REQUIRED: Complete the registration online or by mail:
HOW TO REGISTER AS Register online using the EDD e-Services for Business
AN EMPLOYER (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm).
Register by Mail
Complete and mail an Employers of Household Workers Registration and Update Form (DE 1HW) (PDF)
(edd.ca.gov/pdf_pub_ctr/de1hw.pdf).
Mail or fax the completed registration form to:
Employment Development Department
Account Services Group, MIC 28
PO Box 826880
Sacramento, CA 94280-0001
Fax: 1-916-654-9211
If you have questions about registering as a household employer, contact the Taxpayer Assistance Center
at 1-888-745-3886.
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 the Unemployment Insurance (UI) and State Disability Insurance (SDI)
programs. SDI includes 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 one of the following notices
if you are subject to:
• UI, DI, and PFL – Notice to Employees (DE 1857A) (PDF) (edd.ca.gov/pdf_pub_ctr/de1857a.pdf).
• UI only – Notice to Employees–Unemployment Insurance Benefits (DE 1857D) (PDF)
(edd.ca.gov/pdf_pub_ctr/de1857d.pdf).
• DI and PFL only – Notice to Employees (DE 1858) (PDF) (edd.ca.gov/pdf_pub_ctr/de1858.pdf).
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HOW TO REGISTER AS AN EMPLOYER
Notices and Pamphlets
Employers must provide a copy of the following notice and pamphlets to each employee to explain
employees’ benefit rights:
• For Your Benefit: California’s Programs for the Unemployed (DE 2320) provides information on
Unemployment Insurance (UI), Disability Insurance (DI), Paid Family Leave (PFL), and Workforce
Services benefits available to the employee.
• Disability Insurance Provisions (DE 2515) outlines DI benefits.
• California Paid Family Leave (DE 2511) outlines PFL benefits.
These forms are available to download or order at Forms (edd.ca.gov/forms).
AN EMPLOYER
For the latest tax news and employer resources, visit
HOW TO REGISTER AS
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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HOW TO REGISTER AS AN EMPLOYER
FOR ILLUSTRATIVE PURPOSES ONLY
01HW11151
EMPLOYERS OF HOUSEHOLD WORKERS REGISTRATION AND UPDATE FORM
Did you know you can register online anytime? The Employment Development Department (EDD) e-Services for Business online
application is secure, saves paper, postage, and time. You can access the online application at
www.edd.ca.gov/e-Services_for_Business and follow the easy step-by-step process to complete your registration.
Review the instructions prior to completing this form. Do not submit this form until you have paid wages in excess of $750 to one or more
domestic household employees in any calendar quarter. Additional information about registering with the EDD is available online at
www.edd.ca.gov/Payroll_Taxes/Am_I_Required_to_Register_as_an_Employer.htm.
Important: This form may not be processed if the required information is missing.
A. I WANT TO Register for a New Employer Account Number (Go to Item B.)
(Select only Existing Employer – – (Enter Employer Account Number when reporting an Update,
one box then Account Number: Purchase, Sale, Reopen, Close, or Change in Status.)
complete the
items specified Update Employer Account Information
e-Servicesfor that selection.)for Business Address (F, L) Personal Name Change (E) Add/Change/Delete Officer/Partner/Member (E)
(Provide the Employer Account Number at the top of Item A, then complete the Items identified above and Item O.)
(edd.ca.gov/Payroll_Taxes/e-Services_ Effective Date of Update(s): ____/____/______
for_Business.htm) Reopen a Previously Closed Account (Provide the previous Employer Account Number at the top of Item A then go to Item B.)
Close Employer Account Reason for Closing Account Date of Last Payroll
(Provide the Employer Account No longer have employees
Number at the top of Item A.) Out of Business ____/____/______
Report a Change in Status: Business Ownership, Entity Type, or Name
Reason for Change:
Change: From To
(Provide the Employer Account Number at the top of Item A, and complete the rest of the form.)
HOW TO REGISTER AS Effective Date of Change: ____/____/______
B. TAXPAYER TYPE Individual Owner Co-Ownership Corporation Other (Specify):
(Select type then
AN EMPLOYER proceed to Item C.)
C. FIRST PAYROLL First payroll date when cash wages paid exceeded $750 but not more than $999: ____/____/______ (Wages are all
DATE compensation for an employee’s services. Refer to Information Sheet: Wages, DE 231A, and Information Sheet: Types
(MM/DD/YYYY) of Payments, DE 231TP, at www.edd.ca.gov/Payroll_Taxes/Forms_and_Publications.htm.) First payroll date when
cash wages paid exceeded$1,000 or more: ____/____/______02 01 2022
D. WOULD YOU LIKE INFORMATION ON HOW TO ELECT TO PAY CALIFORNIA EMPLOYMENT TAXES ON Yes No
AN ANNUAL BASIS? See instructions for more information.
E. EMPLOYER CA Driver
NAME(S) NAME TITLE SSN License Add Chg. Del.
Number
JOE SMITH CO-OWNER 000-00-0000 xxxxxxxx
JANE SMITH CO-OWNER 000-00-0000 xxxxxxxx
F. EMPLOYEE WORK SITE ADDRESS G. COUNTY
123 MY HOUSE STREET, ANYTOWN, CA 12345 PISMO
H. FEDERAL TAX ID NUMBER (FEIN) I. DATE WORKER BEGAN WORKING (MM/DD/YYYY)
99-9999999 01 03 2022
J. STATE OR PROVINCE OF INCORPORATION K. CALIFORNIA SECRETARY OF STATE ENTITY NUMBER
CALIFORNIA
L. MAILING ADDRESS Street Number Street Name Unit Number (If applicable)
(PO Box or Private Mail
Box isacceptable.) City State/Province ZIP Code Country
Same as Item F
Phone Number
M. EMAIL Valid Email Address
Check to allow JOESMITH@ANYSERVER.COM
email contact.
DE 1HW Rev. 13 (10-16) (INTERNET) Page 1 of 4 CU
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DE 8829 Rev. 43 (1-23) (INTERNET) Page 14 of 66 CU
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HOW TO REGISTER AS AN EMPLOYER
FOR ILLUSTRATIVE PURPOSES ONLY
EMPLOYERS OF HOUSEHOLD WORKERS
REGISTRATION AND UPDATE FORM
01HW11152
N. CONTACT PERSON Name Contact Phone Number Email Address
(Complete a Power JOE SMITH (123) 555-6789 JOESMITH@ANYSERVER.COM
of Attorney [POA] Relation Address
Declaration, DE 48, if EMPLOYER 123 MY HOUSE ST. ANYTOWN, CA 12345
applicable.)
O. DECLARATION I certify under penalty of perjury that the above information is true, correct, and complete, and that
these actions are not being taken to receive a more favorable Unemployment Insurance rate. I further
certify that I have the authority to sign on behalf of the above business.
Signature Date
02/16/2022
Name Title Phone Number
JOE SMITH EMPLOYER (123) 555-6789
e-Services for Business PRINT
(edd.ca.gov/Payroll_Taxes/e-Services_
for_Business.htm)
AN EMPLOYER
HOW TO REGISTER AS
DE 1HW Rev. 13 (10-16) (INTERNET) Page 2 of 4 CU
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WHAT ARE WAGES?
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.
In addition, how employees are paid does not change the employer’s responsibility for payroll taxes.
Supplemental payments, including bonuses, overtime pay, commissions, and vacation pay are also
considered wages.
If you pay your employees’ share of Social Security, Medicare, and/or State Disability Insurance (SDI)
without deducting the amounts from their wages, these payments may also be considered wages. Refer to
the Information Sheet: Social Security/Medicare/State Disability Insurance/Federal IncomeTaxes Paid by
an Employer (DE 231Q) (PDF) (edd.ca.gov/pdf_pub_ctr/de231q.pdf), or contact the Taxpayer Assistance
Center at 1-888-745-3886.
What Are Subject Wages?
Generally, all wages, unless excluded under the California Unemployment Insurance Code, are considered
subject wages and are used to determine the amount of Unemployment Insurance (UI), Disability Insurance
(DI), and Paid Family Leave (PFL) benefits a claimant receives. Subject wages are the full amount of wages
paid to an employee, regardless of the UI and SDI taxable wage limits. Refer to the inside cover for the
2023 taxable wage limits.
What Are Personal Income Tax Wages?
Personal Income Tax (PIT) wages are cash and noncash payments subject to state income tax. Individuals
must report PIT wages on their California income tax return. Most payments for household employees’
services should be reported as PIT wages.
An employee’s calendar year total for PIT wages should match with the amount reported on the employee’s
federal Wage and Tax Statement (Form W-2) in Box 16 (state wages, tips, etc.). Household employers are
not required to withhold PIT; however, they are required to report PIT wages for each household employee.
For additional information about PIT wages, refer to page 13.
WHAT ARE WAGES? Are Subject Wages and PIT Wages the Same?
In most situations, subject wages and PIT wages are the same. However, subject wages and PIT wages are
reported separately on your EDD quarterly wage report.
For additional information:
• Annual household employers refer to Information Sheet: Personal Income Tax Wages Reported on
the Quarterly Report of Wages and Withholdings for Employers of Household Workers (DE 3BHW)
(DE 231PH).
• Quarterly household employers refer to Information Sheet: Personal Income Tax Wages Reported
on the Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C) (DE 231PIT).
These forms are available online at Forms and Publications (edd.ca.gov/payroll_taxes/forms_and_
publications.htm) or you can contact the Taxpayer Assistance Center at 1-888-745-3886 for assistance.
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DE 8829 Rev. 43 (1-23) (INTERNET) Page 16 of 66 CU
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WHAT ARE WAGES?
Meals and Lodging Values
Meals and lodging provided to employees are wages. If your employees are covered under a contract
of employment or union agreement, the taxable value of meals and lodging should not be less than the
estimated value stated in that document. If the cash value is not stated in an employment contract or union
agreement, please use the tables and information below to determine the value of the meals and/or lodging
you provide to your employees. Meals and lodging furnished for the employer’s convenience and on the
employer’s premises are not subject to Personal Income Tax (PIT). If you withhold PIT from your employees’
wages, please refer to page 13.
Value of Meals
Three Meals Meal Not
Year per Day Breakfast Lunch Dinner Identified
2023 $ 13.85 $ 2.85 $ 4.25 $ 6.75 $ 4.95
2022 $ 12.95 $ 2.65 $ 4.00 $ 6.30 $ 4.65
To calculate 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. The table
below shows the minimum and maximum amounts to report for lodging.
Value of Lodging
Year Minimum per Week Maximum per Month
2023 $ 57.05 $ 1,759
2022 $ 55.60 $ 1,715
For additional information, refer to Information Sheet: Household Employment (DE 231L) (PDF)
(edd.ca.gov/pdf_pub_ctr/de231l.pdf), or contact the Taxpayer Assistance Center at 1-888-745-3886
for assistance. To view current and historical meals and lodging refer to Rates and Withholding
(edd.ca.gov/Payroll_Taxes/Rates_and_Withholding.htm).
For historical rate information for the last eight years visit Tax Rates, Wages Limits, and Value of Meals and
Lodging (DE 3395) (PDF) (edd.ca.gov/pdf_pub_ctr/de3395.pdf).
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).
WHAT ARE WAGES?
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WHAT ARE PAYROLL TAXES? WHAT ARE PAYROLL TAXES?
2023 Payroll Tax Table
Payroll Tax Who Pays Taxable Wages Tax Rate Maximum Tax
Unemployment Employer First $7,000 New employer tax $434 per employee,
Insurance (UI) of wages per rate is 3.4 percent per year (calculated
employee, in a (.034) for a period at the highest UI tax
For more
calendar year. of two to three rate of 6.2 percent
information, refer to
years. Following [.062]).
Information Sheet:
this period, the tax
California System of Your maximum UI
rate is calculated
Experience Rating tax amount will be
annually based on
(DE 231Z) (PDF) less if your rate
each employer’s
(edd.ca.gov/ is less than 6.2
previous UI
pdf_pub_ctr/ percent.
experience and the
de231z.pdf).
condition of the UI
Fund.
Employment Employer First $7,000 Set by law at 0.1 $7 per employee,
Training Tax (ETT) of wages per percent (.001) of per year.
employee, in a UI taxable wages
calendar year. for employers with
positive UI reserve
account balances.
State Disability Employee First $153,164 The 2023 $1,378.48 per
Insurance (SDI) of wages per withholding rate is employee, in a
Employer withholds
employee, in a .9 percent (.009). calendar year.
Disability SDI contributions
calendar year. Set by law, the
Insurance (DI) from employee
SDI rate may
and Paid Family wages; employers
change each year.
Leave (PFL) are are responsible for
The EDD notifies
components of SDI not withheld from
employers of the
the SDI program employee wages. If
new rate each
and are included the employer pays SDI
December.
in SDI employee for employee(s), refer
contributions. to page 10.
California Employee Normally, all PIT PIT is withheld No maximum
Personal Income wages (cash based on each
Household employers
Tax (PIT) and noncash). Employee’s
are not required to
Withholding
withhold PIT from See page 13 for
Allowance
employee wages information on
Certificate
unless both the when to exclude
(DE 4). View
employer and meals and
the withholding
employee agree to lodging from
schedules
withhold the tax. Refer PIT wages.
available at Payroll
to page 13. However,
Taxes, Rates and
the employee is
Withholding
still responsible for
(edd.ca.gov/
reporting their wages
Payroll_Taxes/
and paying any PIT
Rates_and_
due when they file their
Withholding.htm).
income tax return with
the California Franchise
Tax Board (FTB).
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WHAT ARE PAYROLL TAXES?
Withholding California Personal Income Tax
If a household employee wishes to have California Personal Income Tax (PIT) withheld from his or her
wages and you agree to withhold it, you need to report and pay the PIT withheld to the Employment
Development Department (EDD).
To have California PIT withheld, your employee(s) must complete an Employee’s Withholding Allowance
Certificate (DE 4) (PDF) (edd.ca.gov/pdf_pub_ctr/de4.pdf).
Refer to the California Withholding Schedules (edd.ca.gov/Payroll_Taxes/Rates_and_Withholding.htm)
WHAT ARE PAYROLL TAXES?
to determine the amount of PIT to be withheld from wages.
For more information, contact the Taxpayer Assistance Center at 1-888-745-3886.
PIT Wages and the Value of Meals and Lodging: Meals and lodging are excluded from PIT wages and
withholdings if you provide meals and lodging to your employee(s) because it is convenient for you, and:
• Meals are furnished on your premises;
and/or
• Lodging is furnished on your premises and is required as a condition of employment.
Example: A governess lives and eats meals in your home so she can take care of your children. The value
of the meals and lodging would not be considered PIT wages, and PIT would not be withheld
because the meals and lodging are furnished on your premises for your convenience.
The value of the meals and lodging would be included in total subject wages reported on the
Employer of Household Worker(s) Quarterly Report of Wages and Withholdings (DE 3BHW) for
annual household employers and on the Quarterly Contribution Return and Report of Wages
(Continuation) (DE 9C) for quarterly household employers. For additional information, refer
to the Information Sheet: Personal Income Tax Wages Reported on the Quarterly Report of
Wages and Withholdings for Employers of Household Workers (DE 3BHW) (DE 231PH) (PDF)
(edd.ca.gov/pdf_pub_ctr/de231ph.pdf).
If the meals and lodging do not meet the exclusions listed above, these amounts must be added to the
cash wages paid to your employee(s) before computing the amount of PIT to withhold. Refer to the Values
of Meals and Lodging tables on page 11 to determine the cash value to report, or visit Meals and Lodging
Values (edd.ca.gov/Payroll_Taxes/Rates_and_Withholding.htm).
Remember:
• An employee’s calendar year total for PIT wages should match with the amount reported in Box 16
on the employee’s Wage and Tax Statement (Form W-2). Find additional information about Form W-2
online by visiting Internal Revenue Service (IRS) (irs.gov).
• While household employers are not required to withhold PIT, they are required to report PIT wages
on the Employer of Household Worker(s) Quarterly Report of Wages and Withholdings (DE 3BHW)
or Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C). The PIT wages are
reported separately from subject wages on the quarterly wage reports (DE 3BHW or DE 9C) that you
file with the EDD.
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ELECTRONIC FILING AND PAYMENT REQUIREMENTS
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.
PAYMENT REQUIREMENTS ELECTRONIC FILING AND • 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)
Waiver
Employers may request a waiver from the mandate due to lack of automation, severe economic hardship,
current exemption from the federal government, or other good cause. You can download the E-file and
E-pay Mandate Waiver Request (DE 1245W) (PDF) (edd.ca.gov/pdf_pub_ctr/de1245w.pdf) or contact
the Taxpayer Assistance Center at 1-888-745-3886. Instructions and mailing address are on the waiver
request form.
For more information, visit the e-file and e-pay mandate for employers and related noncompliance penalties,
(edd.ca.gov/Payroll_Taxes/E-file_and_E-pay_Mandate_for_Employers.htm).
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 14 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 20 of 66 CU
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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.
• Change from Annual to Quarterly Filing and Payments.
Benefits:
• Fulfills the e-file and e-pay mandate for employers.
• No cost to enroll and use.
• Provides confirmation when your return, report, or payment is received.
• Saves time by saving basic account information for future transactions.
• Reduces paper and mailing cost.
*The DE 34 and DE 542 may be filed from 5 a.m. to 12 midnight, Pacific Time, 7 days a week. All other services on this page may be accessed
24 hours a day, 7 days a week.
ONLINE SERVICES
Additional e-Services for Business Information
View tutorials on how to: View answers to frequently asked questions about:
• Enroll for a username and password. • Recovering username and/or resetting password.
• Register for an employer payroll tax account Accessing an employer payroll tax account.
•
number.
• Registering, closing, or reopening an account.
• File an employment tax return/wage report.
• Make a payroll tax deposit. • Filing forms and making payments.
• And more. • Filing benefit charge and rate protests.
• 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 15 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 21 of 66 CU
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ARE YOU AN ANNUAL OR QUARTERLY HOUSEHOLD EMPLOYER?
How to Report and Pay Your Taxes
There are two types of household employers: Annual household employers and Quarterly household
employers. The following table explains the requirements for filing payroll tax reports and making tax
payments for each type:
Annual Quarterly
Household Employer Household Employer
Requirements Report wages quarterly, pay Report wages quarterly and pay
taxes annually, and is current taxes quarterly.
with reporting and payments.
Refer to page 25.
Annual Wage Threshold Pay household wages of Pay household wages that
$20,000 or less annually exceed $20,000 annually
and or
elects to pay taxes on an pays household wages of
annual basis. $20,000 or less annually
and
does not elect to pay taxes on
an annual basis.
Forms Required (submit online
using e-Services for Business
[edd.ca.gov/Payroll_Taxes/e-
Services_for_Business.htm]):
Registration: • Employers of Household Employers of Household
Workers Registration and Workers Registration and Update
Update Form (DE1HW). Form (DE 1HW).
• Employer of Household
Worker Election Notice
ARE YOU AN ANNUAL OR QUARTERLY (DE 89).
HOUSEHOLD EMPLOYER? Each Quarter: Employer of Household • Payroll Tax Deposit (DE 88)
Worker(s) Quarterly Report payment.
of Wages and Withholdings
(DE 3BHW). • Quarterly Contribution Return
and Report of Wages (DE 9).
• Quarterly Contribution
Return and Report of Wages
(Continuation) (DE 9C).
Each Year: Employer of Household
Worker(s) Annual Payroll Tax
Return (DE 3HW) with payment.
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ANNUAL HOUSEHOLD EMPLOYERS
ANNUAL HOUSEHOLD EMPLOYERS
Overview
Household employers who pay $20,000 or less in cash and noncash wages in one calendar year and
are current on their reporting and payments may elect to make one yearly payment for their California
payroll taxes. If you elect to pay taxes annually, you must still report employee subject wages, Personal
EMPLOYERS
Income Tax (PIT) wages, and PIT withholdings quarterly.
You will not automatically be considered an annual household employer, even if you pay $20,000 or less in ANNUAL HOUSEHOLD
wages.
To request to become an annual household employer, you must submit the following form to the EDD:
• Employer of Household Worker Election Notice (DE 89). Refer to information below regarding the
DE 89.
If you are approved as an annual household employer, you must file the following forms:
• Quarterly:
File an Employer of Household Workers(s) Quarterly Report of Wages and Withholdings
(DE 3BHW) to report employee subject wages, Personal Income Tax (PIT), and PIT withholding.
• Annually:
File an Employer of Household Worker(s) Annual Payroll Tax Return (DE 3HW) with a payment for
the total payroll taxes due.
Submit forms online using e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm).
Sample forms are provided on pages 8 and 18.
NOTE:
• If you are approved as an annual household employer, but you submit a tax return and payment(s)
quarterly, your account will be converted to a quarterly household employer account. In order to
revert back to an annual household employer, you will need to submit an Employer of Household
Worker Election Notice (DE 89).
• If you are an annual household employer and your total accumulated wages exceed $20,000
during the calendar year, you must contact the EDD immediately to change your filing status to
a quarterly household employer. You can submit a request to the EDD to terminate the annual
household employer election and revert the account to quarterly filing of tax returns, wage reports
and payments using e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.
htm). Refer to page 24 for additional information.
Employer of Household Worker Election Notice (DE 89)
Overview
Household employers who pay $20,000 or less in wages per year and are current on their reporting
and payments can use the DE 89 to elect to pay California payroll taxes annually instead of quarterly. If
approved, the election is effective the first day of the calendar year in which the election is filed. If you pay
more than $20,000 in accumulated wages in a year, the election will be terminated and you will be required
to file and pay all payroll taxes owed for the year at the end of that calendar quarter.
Download the DE 89 (PDF) (edd.ca.gov/pdf_pub_ctr/de89.pdf), or contact the Taxpayer Assistance Center
at 1-888-745-3886.
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ANNUAL HOUSEHOLD EMPLOYERS
ANNUAL HOUSEHOLD
FOR ILLUSTRATIVE PURPOSES ONLY
EMPLOYERS
JOE AND JANE SMITH
4/4/2022
PO BOX 12345
000-0000-0
ANYTOWN, CA 12345
4/4/2022 000-0000-0
JANE SMITH 123 555-6789 PO BOX 12345
ANYTOWN CA 12345
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ANNUAL HOUSEHOLD EMPLOYERS
Employer of Household Worker(s)
Quarterly Report of Wages and Withholdings (DE 3BHW)
Overview
Household employers who pay $20,000 or less in wages per year and elect to pay taxes annually use
the DE 3BHW to report employee quarterly wages subject to Unemployment Insurance (UI), Employment
EMPLOYERS
Training Tax (ETT), State Disability Insurance (SDI) taxes, and Personal Income Tax (PIT) wages. If PIT is
withheld, that amount is also reported on this form. Even though taxes are paid just once a year, wages
ANNUAL HOUSEHOLD
must be reported each quarter by state law. For quarter(s) that you do not have wages, you must still file
the report. Refer to page 24 for your filing requirements if you stop employing people to work in your home
and do not intend to hire anyone in the future.
2023 Due Dates
Employer of Household Worker(s) Quarterly Report of Wages and Withholdings (DE 3BHW)
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
You must electronically file a DE 3BHW each quarter even if you did not pay wages during the
quarter. Tax returns and wage reports must be submitted electronically in order to be in compliance with
the e-file and e-pay mandate for employers. Refer to page 14 for more information on the e-file and e-pay
mandate for employers and related noncompliance penalties. Penalty and interest will be charged on late
filing of reports. Not having a form to complete is not considered good cause for filing your DE 3BHW late;
refer to page 56 for the definition of good cause. Refer to page 24 for your filing requirements if you stop
employing people to work in your home and do not intend to hire anyone in the future.
Electronic Filing: File and pay online with e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_
Business.htm). It’s a fast, easy, and secure way to manage your employer payroll tax account online.
• Fulfills the e-file and e-pay mandate.
• File tax returns, wage reports and make payments.
• View, adjust, and print returns/reports.
• Available 24 hours a day, 7 days a week.
For additional e-Services for Business features, refer to page 15.
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ANNUAL HOUSEHOLD EMPLOYERS
ANNUAL HOUSEHOLD
EMPLOYERS Employer of Household Worker(s) Annual Payroll Tax Return (DE 3HW)
Overview
Household employers who pay $20,000 or less in wages per year and elect to pay taxes annually use the
DE 3HW to report Unemployment Insurance (UI), Employment Training Tax (ETT), and State Disability
Insurance (SDI) amounts withheld to the Employment Development Department (EDD). If Personal Income
Tax (PIT) is withheld, that amount is also reported to the EDD with this form.
NOTE: If your total accumulated wages exceed $20,000 during the year, you must notify the EDD
immediately that you need to change to a quarterly household employer. Refer to page 24 for information
about changing from an annual household employer to a quarterly household employer.
2023 Due Dates
Employer of Household Worker(s) Annual Payroll Tax Return (DE 3HW)
Report Covering Due Date Delinquent if Not Filed By
2023 January 1, 2024 January 31, 2024
If you are unable to pay all or part of your taxes on time, you must still electronically file your
DE 3HW. Tax returns and wage reports must be electronically submitted per the e-file and e-pay mandate
for employers. Refer to page 14 for more information on the e-file and e-pay mandate for employers and
related noncompliance penalties. Penalty and interest will be charged on late payroll tax payments and
reports. Not having a form to complete is not considered good cause for filing your DE 3HW late; refer to
page 56 for the definition of good cause. Refer to page 24 for your filing requirements if you stop employing
people to work in your home and do not intend to hire anyone in the future.
Electronic Filing: File and pay online with e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_
Business.htm). It’s a fast, easy, and secure way to manage your employer payroll tax account online.
• Fulfills the e-file and e-pay mandate.
• File tax returns and wage reports and make payments.
• View, adjust, and print returns/reports.
• Available 24 hours a day, 7 days a week.
For additional e-Services for Business features, refer to page 15.
Learn more about employer payroll taxes through our seminars by visiting Payroll Tax Seminars
(Seminars.edd.ca.gov/Payroll_Tax_Seminars).
edd.ca.gov 20 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 26 of 66 CU
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ANNUAL HOUSEHOLD EMPLOYERS
Employer Paid Taxes for Employees
If you pay the State Disability Insurance (SDI) tax without deducting it from your employee(s) wages, the
amount of the SDI you paid isconsidered an increase in the employee(s) wages and should be included in
subject wages for Unemployment Insurance (UI), Employment Training Tax (ETT), and SDI purposes.
If you pay Social Security and/or Medicare without deducting them from your employee(s) wages, the EMPLOYERS
amount you paid is not considered an increase in the employees’ wages and should not be included in
subject wages for UI, ETT, or SDI purposes. ANNUAL HOUSEHOLD
If you and your employee(s) have agreed to withhold Personal Income Tax (PIT), the amount of Social
Security, Medicare, or SDI that you paid without deducting from the employee’s subject wages should be
included in PIT wages and used to calculate the PIT withholding amount.
For assistance in calculating subject wages and PIT wages under these circumstances, refer to
Information Sheet: Social Security/Medicare/State Disability Insurance/Federal and State Income Taxes Paid
by an Employer (DE 231Q) (PDF) (edd.ca.gov/pdf_pub_ctr/de231q.pdf). You can download the DE 231Q
or contact the Taxpayer Assistance Center at 1-888-745-3886.
Refer to page 29 for How to Calculate Taxable Wages.
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 21 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 27 of 66 CU
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ANNUAL HOUSEHOLD EMPLOYERS
ANNUAL HOUSEHOLD
2023 Due Dates and Delinquency Dates
EMPLOYERS
NOTE: When the last timely date to file falls on a Saturday, Sunday, or federal holiday, filings are
delinquent if not postmarked or received by the next business day.
Delinquent if Not Postmarked
Form Filing Due Dates or Received By
Employer of Household April 1, 2023
Worker(s) Quarterly Report for filing period of January, May 1, 2023
of Wages and Withholdings February, and March
(DE 3BHW)
July 1, 2023
for filing period of April, May, July 31, 2023
and June
October 1, 2023
for filing period of July, August, October 31, 2023
and September
January 1, 2024
for filing period of October, January 31, 2024
November, and December
Employer of Household
January 1, 2024
Worker(s) Annual Payroll Tax January 31, 2024
for year of 2023
Return (DE 3HW) (with payment)
If you cannot pay all or part of your taxes on time, you must still electronically file the DE 3HW. Penalty and
interest will be charged on late payroll tax payments and reports.
Electronic Filers:
• Follow the online instructions to submit timely reports through e-Services for Business
(edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm).
edd.ca.gov 22 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 28 of 66 CU
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ANNUAL HOUSEHOLD EMPLOYERS
Correcting Previously Filed Reports and Returns
Electronic Adjustments: File online through e-Services for Business (edd.ca.gov/payroll_taxes/e-Services
_for_Business.htm) and follow the simple online instructions to make corrections to previously filed reports
and returns.
Paper Adjustments: Use the table below to determine how to correct your Employment
Development Department (EDD) reports with the Tax and Wage Adjustment Form (DE 678) (PDF) EMPLOYERS
(edd.ca.gov/pdf_pub_ctr/ de678.pdf).
ANNUAL HOUSEHOLD
Reason for
Form Adjustment How to Make an Adjustment
Correcting Incorrect Complete the DE 678, Section I, and make two entries in Section V
a previously employee for each quarter that was reported incorrectly. For the first entry,
filed Employer Social Security enter the quarter, incorrect SSN, employee name, and enter zeros
of Household number (SSN) in the total subject wages, PIT wages, and PIT withheld fields. For
Worker(s) reported. the second entry, enter the quarter, correct SSN, employee name,
Quarterly Report total subject wages, PIT wages, and PIT withheld.
of Wages and
Withholdings Incorrect Complete the DE 678, Section I, and make two entries in Section V
(DE 3BHW) employee for each quarter that was reported incorrectly. For the first entry,
name enter the quarter, SSN, incorrect employee name, and enter zeros
reported. in the total subject wages, PIT wages, and PIT withheld fields. For
the second entry, enter the quarter, SSN, correct employee name,
total subject wages, PIT wages, and PIT withheld.
Incorrect Complete the DE 678, Sections I and V. Enter the correct wages
wages and/or PIT information for each employee by quarter. Information
and/or PIT provided in annual amounts will be returned unprocessed.
information If the DE 3HW was filed with incorrect information, also
NOTE:
reported for complete Section III.
employees.
No SSN Complete the DE 678, Section I, and make two entries in Section V
reported for for each quarter that was reported incorrectly. For the first entry,
employee. enter the quarter, all zeros (000-00-0000) for the SSN, employee
name, all zeros for total subject wages, PIT wages, and PIT
withheld. For the second entry, enter the quarter, SSN, employee
name, total subject wages, PIT wages, and PIT withheld.
Employee(s) Complete the DE 678, Sections I and V. Report the employees, their
not previously SSNs, total subject wages, PIT wages, and PIT withheld by quarter.
reported. If the DE 3HW was filed with incorrect information, also
NOTE:
complete Section III.
Correcting Provided Complete the DE 678, Sections I, III, and IV, with the correct
a previously incorrect UI, information. If the DE 3BHWs were filed incorrectly, also complete
filed Employer ETT, SDI, Section V of the DE 678 as instructed above.
of Household and/or PIT If taxes are due, send a payment for the tax amount due
NOTE:
Worker(s) Annual information. plus penalty and interest, if any, with the DE 678.
Payroll Tax
Return (DE 3HW)
You can download the DE 678 (PDF) (edd.ca.gov/pdf_pub_ctr/de678.pdf) and the Instructions for Completing
the Tax and Wage Adjustment Form (DE 678-I) (PDF) (edd.ca.gov/pdf_pub_ctr/de678i.pdf). For questions
about when or how to use the form, adjusting previously reported payroll taxes or wages, or to order forms,
contact the Taxpayer Assistance Center at 1-888-745-3886.
edd.ca.gov 23 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 29 of 66 CU
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ANNUAL HOUSEHOLD EMPLOYERS
ANNUAL HOUSEHOLD
No Longer Paying Wages
EMPLOYERS
If you are an annual household employer and stop employing people to work in your home and do not
intend to hire anyone in the future, you will need to submit your final Employer of Household Worker(s)
Annual Payroll Tax Return (DE 3HW) and a payment for the total payroll taxes due and your Employer
of Household Worker(s) Quarterly Report of Wages and Withholdings (DE 3BHW) for the quarter within
10 days of when you stop employing people, regardless of the normal due date. If you plan to employ
people to work in your home in the future, but do not have payroll this quarter, file a DE 3BHW indicating
you do not have payroll to report. If you have an approved e-file and e-pay mandate for employers waiver
and file by paper, mark No Payroll This Quarter (Item B) on the DE 3BHW. These reports must be filed
even if no wages were paid in the quarter. Contact the Taxpayer Assistance Center at 1-888-745-3886 for
assistance.
Household employers may close their employer payroll tax account online using e-Services for Business
(edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm). If you resume paying wages in excess of $750
in a calendar quarter, you may also request to reopen your employer payroll tax account through e-Services
for Business.
When to Change From an Annual Household Employer
to a Quarterly Household Employer
If at any time during the year the total accumulated wages exceed $20,000, you must notify the
EDD immediately. The election to pay annually will be terminated. You can submit a request to the EDD
to terminate the annual household employer election and revert the account to quarterly filing of tax returns,
wage reports and payments using e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_
Business.htm). For additional information, refer to Information Sheet: Household Employment (DE 231L)
(PDF), (edd.ca.gov/pdf_pub_ctr/de231L.pdf), or contact the Taxpayer Assistance Center at 1-888-745-3886
for assistance.
As a quarterly household employer, you will no longer need to prepare a DE 3HW or a DE 3BHW. Each
quarter, you will complete a Quarterly Contribution Return and Report of Wages (DE 9) and a Quarterly
Contribution Return and Report of Wages (Continuation) (DE 9C). You will also need to submit a Payroll
Tax Deposit (DE 88) payment to the EDD at least quarterly.
If you are required to change to a quarterly household employer mid-year, then you must electronically
submit a DE 3HW and DE 3BHW to cover the quarters you were an annual household employer. You will
also need to submit a DE 9 and DE 9C for the quarters you were a quarterly household employer. In the
following years, you will no longer submit a DE 3HW or a DE 3BHW.
For an explanation of the responsibilities of a quarterly household employer, please refer to the Quarterly
Household Employers section of this guide, beginning on page 25.
edd.ca.gov 24 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 30 of 66 CU
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QUARTERLY HOUSEHOLD EMPLOYERS
QUARTERLY HOUSEHOLD EMPLOYERS
Overview
If your total annual accumulated wages (both cash and noncash) are more than $20,000 or if you do not
elect to become an annual household employer, you must file wage reports quarterly and pay taxes
quarterly.
NOTE: For information on how to elect to become an annual household employer, refer to page 17.
As a quarterly household employer, you must electronically file the following forms:
• Quarterly Contribution Return and Report of Wages (DE 9).
• Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C).
• Payroll Tax Deposit (DE 88).
The EDD offers a full range of online services for filing and paying state payroll taxes. To learn more refer to
e-Services for Business Tutorials (edd.ca.gov/Payroll_Taxes/e-Services_for_Business_Tutorials.htm).
EMPLOYERS
QUARTERLY HOUSEHOLD
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 25 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 31 of 66 CU
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QUARTERLY HOUSEHOLD EMPLOYERS
Quarterly Contribution Return and Report of Wages (DE 9)
Overview
Quarterly household employers must 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.
2023 Due Dates for the Quarterly Contribution Return and Report of Wages (DE 9)
Report Covering Due Date Delinquent if Not Filed by
QUARTERLY HOUSEHOLD January, February, March April 1, 2023 May 1, 2023
April, May, June July 1, 2023 July 31, 2023
EMPLOYERS July, August, September October 1, 2023 October 31, 2023
October, November, December January 1, 2024 January 31, 2024
You must electronically file a DE 9 each quarter even if you did not pay wages during the quarter
indicating you do not have payroll to report for this quarter. Tax Returns and Wage Reports must be
submitted electronically in order to be in compliance with the e-file and e-pay mandate for employers. Refer
to page 14 for more information on the e-file and e-pay mandate for employers and related noncompliance
penalties. Penalty and interest will be charged on late filing of reports. Not having a form to complete is
not considered good cause for filing your DE 9 late; refer to page 56 for the definition of good cause.
Electronic Filing: File and pay online with e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_
Business.htm). It’s a fast, easy, and secure way to manage your employer payroll tax account online.
• Fulfills the e-file and e-pay mandate.
• File tax returns/wage reports and make payments.
• View, adjust, and print returns/reports.
• Available 24 hours a day, 7 days a week.
For additional e-Services for Business features, refer to page 15.
edd.ca.gov 26 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 32 of 66 CU
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QUARTERLY HOUSEHOLD EMPLOYERS
Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C)
Overview
Quarterly household employers must use the Quarterly Contribution Return and Report of Wages
(Continuation) (DE 9C) to report employee wages subject to Unemployment Insurance (UI), Employment
Training Tax (ETT), State Disability Insurance (SDI), and to report Personal Income Tax (PIT) wages. If PIT
is withheld, that amount is also reported on this form. You must electronically submit a DE 9 and a DE 9C
each quarter.
2023 Due Dates for the Quarterly Contribution Return and Report of Wages (Continuation) (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
You must electronically file a DE 9C each quarter even if you did not pay wages during the quarter EMPLOYERS
indicating you do not have payroll to report for this quarter. Tax returns and wage reports must be
submitted electronically in order to be in compliance with the e-file and e-pay mandate for employers. Refer
to page 14 for more information on the e-file and e-pay mandate for employers and related noncompliance QUARTERLY HOUSEHOLD
penalties. Penalty and interest will be charged on late reports. Not having a form to complete is not
considered good cause for filing your DE 9C late; refer to page 56 for the definition of good cause.
Electronic Filing: File and pay online with e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_
Business.htm). It’s a fast, easy, and secure way to manage your employer payroll tax account online.
• Fulfills the e-file and e-pay mandate.
• File tax returns, wage reports and make payments.
• View, adjust, and print tax returns and wage reports.
• Available 24 hours a day, 7 days a week.
For additional e-Services for Business features, refer to page 15.
edd.ca.gov 27 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 33 of 66 CU
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QUARTERLY HOUSEHOLD EMPLOYERS
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, and Personal Income Tax (PIT) withholdings to the
EDD. Employers can enroll and use e-Services for Business to immediately make deposits.
e-Services for Business. Online. Anytime.
QUARTERLY HOUSEHOLD
EMPLOYERS Electronic Filing with e-Services for Business:
• All employers must electronically submit payroll tax deposits. Refer to page 14 for additional
information on the e-file and e-pay mandate for employers and related noncompliance penalties.
• Fulfills the e-file and e-pay mandate for employers.
• Fast, easy, and secure way to manage your payroll taxes online.
• Available 24 hours a day, 7 days a week.
• Employer representatives/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 15.
Enroll and file online with e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm).
When Due:
• If you do not withhold PIT or if accumulated PIT withholdings are less than $350, taxes
(UI, ETT, SDI, and PIT) are due each quarter on January 1, April 1, July 1, and October 1 (see
page 27 for delinquency dates).
• If PIT withholdings are $350 or more, SDI and PIT may need to be deposited more often.
Refer to page 32 for the California Deposit Requirements table.
• Refer to page 32 for additional deposit information and due dates.
NOTE: A penalty of 15 percent (15%) plus interest will be charged on late payroll tax payments.
The UI, ETT, and SDI tax rates are available online with e-Services for Business.
For additional assistance, contact the Taxpayer Assistance Center at 1-888-745-3886. If outside of the U.S.
or Canada, call 1-916-464-3502.
edd.ca.gov 28 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 34 of 66 CU
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QUARTERLY HOUSEHOLD EMPLOYERS
How to Calculate Taxable Wages
Unemployment Insurance (UI) tax and Employment Training Tax (ETT) are calculated up to the UI taxable
wage limit of each employee’s wages per year and are paid by the employer. State Disability Insurance
(SDI) tax is calculated up to the SDI taxable wage limit of each employee’s wages in 2023 and is withheld
from the employee’s wages.
NOTE: Examples were created using the 2022 UI taxable wage limit of $7,000 and SDI taxable wage limit
of $145,600.
Example: An employer has two employees, Jane and John (for illustrative purposes only).
In the first quarter, Jane is paid $10,000 and John is paid $6,000. The employer pays UI and
ETT on $7,000 of Jane’s wages and all of John’s wages. The employer will not pay UI and ETT
for Jane for the remainder of the year since she has reached the UI taxable wage limit. SDI is
withheld from both employees’ total wages.
First Quarter Taxable Wages Taxable Wages
UI/ETT SDI
Jane $ 7,000.00 $ 10,000.00
John + 6,000.00 + 6,000.00 EMPLOYERS
Total Taxable Wages $ 13,000.00 $ 16,000.00
In the second quarter, Jane is paid $35,000 and John is paid $500. The employer pays UI QUARTERLY HOUSEHOLD
and ETT on John’s total wages since the UI taxable wage limit has not been met. The employer
withholds SDI from both employees’ total wages since neither has reached the SDI taxable
wage limit.
Second Quarter Taxable Wages Taxable Wages
UI/ETT SDI
Jane $ 7,000.00 $ 35,000.00
John + 500.00 + 500.00
Total Taxable Wages $ 3500.00 $ 35,500.00
In the third quarter, Jane is paid $35,000 and John is paid $8,000. The employer pays UI and
ETT on $500 of John’s wages since he has now reached the UI taxable wage limit for the year.
The employer withholds SDI from both employees’ total wages since neither has reached the
SDI taxable wage limit.
Third Quarter Taxable Wages Taxable Wages
UI/ETT SDI
Jane $ 7,000.00 $ 35,000.00
John + 500.00 + 8,000.00
Total Taxable Wages $ 1,0500.00 $ 43,000.00
In the fourth quarter, Jane is paid $37,000 and John is paid $15,000. The employer only
withholds SDI taxes from both employee’s total wages since neither has reached the SDI
taxable wage limit.
Fourth Quarter Taxable Wages Taxable Wages
UI/ETT SDI
Jane $ 7,000.00 $ 37,000.00
John + 00.00 + 15,000.00
Total Taxable Wages $ 31,000.00 $ 52,000.00
edd.ca.gov 29 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 35 of 66 CU
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QUARTERLY HOUSEHOLD EMPLOYERS
How to Compute
State Disability Insurance Withholding
The State Disability Insurance (SDI) tax rate for the calendar year 2023, which includes Disability Insurance
(DI) and Paid Family Leave (PFL), is available on the inside cover of this guide. The SDI tax is withheld
from all cash and noncash wages paid to each employee in 2023 up to the SDI taxable wage limit. Noncash
wages include meals and lodging (refer to Values of Meals and Lodging tables on page 11). Refer to the
NOTE below if you do not withhold SDI from your employees’ wages.
If SDI tax is withheld from your employees’ wages, a Payroll Tax Deposit (DE 88) must be submitted to
QUARTERLY HOUSEHOLD the EDD at least once each quarter and must be received by the due dates listed in the table on page 32.
If you withhold more than $500 in Personal Income Tax (PIT) from your employees during a quarter, refer
EMPLOYERS to the California Deposit Requirement table (edd.ca.gov/payroll_taxes/timely_payroll_tax_deposits.htm) or
contact the Taxpayer Assistance Center at 1-888-745-3886 to determine when to submit your SDI and PIT
payment to the EDD.
Example: Total SDI taxable wages for the quarter are $13,000 (for illustrative purposes only). Examples
were created using the 2022 rates. Refer to the inside cover for the 2023 rates.
SDI Taxable Wages $13,000
x SDI Tax Rate x 0.011
SDI Taxes Due $ 143 (Enter this amount in Box C of the DE 88)
NOTE:
1. If, after paying $750 in cash wages in one or more quarters in a calendar year, and you then begin
paying your employee(s) less than $750 in the following quarters, you must continue withholding SDI
taxes from your employees’ wages through December of the following year. Once you exceed the
threshold on wages, you continue to be subject through the following year.
2. If you pay the SDI tax without deducting it from your employees’ wages, the amount of SDI you paid
is considered an increase in the employees’ wages and must be used to calculate Unemployment
Insurance (UI), Employment Training Tax (ETT), and SDI withholding. The additional amount must also
be included as PIT wages and used to calculate the PIT withholding amount if you and any of your
employees have agreed to withhold PIT.
If you pay Social Security and/or Medicare taxes without deducting them from your employees’ wages,
these payments are not considered an increase in the employees’ wages for UI, ETT, and SDI but are an
increase in PIT wages that must be used to calculate the PIT withholding amount.
Assistance in calculating subject wages and PIT wages under these circumstances is available online.
Refer to Information Sheet: Social Security/Medicare/State Disability Insurance/Federal and State Income
Taxes Paid by an Employer (DE 231Q) (PDF) (edd.ca.gov/pdf_pub_ctr/de231q.pdf), or contact the Taxpayer
Assistance Center at 1-888-745-3886.
edd.ca.gov 30 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 36 of 66 CU
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QUARTERLY HOUSEHOLD EMPLOYERS
How to Compute
Unemployment Insurance Tax and Employment Training Tax
If you paid cash and noncash wages of $1,000 or more in a calendar quarter to your household employee(s),
in addition to State Disability Insurance (SDI) withholding, you must pay Unemployment Insurance (UI) tax and
Employment Training Tax (ETT) at the following rates:
• The UI tax rate for new employers or those newly subject to UI is 3.4 percent (.034). Your tax rate
will be provided to you when you register with the EDD or become subject to UI. Your tax rates (UI,
ETT, and SDI) are updated once each year. A Notice of Contribution Rates and Statement of UI
Reserve Account (DE 2088) is mailed to you in December, showing the rates for the upcoming year.
The UI tax is paid on cash and noncash wages paid to each employee in 2023 up to the UI taxable
wage limit of $7,000. Refer to the inside cover for the 2023 UI taxable wage limit. Noncash wages
include meals and lodging. Refer to Values of Meals and Lodging on page 11.
• The ETT rate is set by law at 0.1 percent (.001) of your UI taxable wages. However, if you have a
negative UI reserve account balance on June 30, you will not be required to pay ETT the following
calendar year. The annual DE 2088 will show whether your rate is zero or 0.1 percent (.001).
Example: You have two employees and your total UI taxable wages for the quarter are $12,000 (for EMPLOYERS
illustrative purposes only). The UI tax rate is 3.4 percent (.034). The ETT rate is 0.1 percent
(.001). Examples were created using standard starting rates, your UI rate may differ.
QUARTERLY HOUSEHOLD
UI Taxable Wages $12,000
x UI Tax Rate x 0.034
UI Taxes Due $ 408 (Enter this amount for UI deposit)
UI Taxable Wages $12,000
x ETT Rate x 0.001
ETT Due $ 12 (Enter this amount for ETT deposit)
The UI tax and ETT amounts are paid by the employer and are not withheld from employees’ wages.
NOTE:
If, after paying $1,000 in cash wages in one or more quarter in a calendar year and then you begin paying
your employees less than $750 in the following quarters, you must continue withholding SDI taxes from your
employees’ wages and pay Unemployment taxes through December of the following year. Once you exceed
the threshold on wages, you continue to be subject through the following year.
Your payroll taxes and a Payroll Tax Deposit (DE 88) must be submitted electronically to the EDD
each quarter.
File and pay online using e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm).
It’s fast, easy, and secure. Refer to page 15 for more information.
Learn more about payroll taxes through our seminars.
Visit Payroll Tax Seminars (Seminars.edd.ca.gov/Payroll_Tax_Seminars).
edd.ca.gov 31 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 37 of 66 CU
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QUARTERLY HOUSEHOLD EMPLOYERS
2023 Due Dates and Delinquency Dates
File and pay online using e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm).
It’s fast, easy, and secure. Refer to page 15 for more information.
Withholding Deposits
If You Have
Accumulated PIT PIT and SDI Deposit
2
Form Calendar Quarter Withholding of Due by
QUARTERLY HOUSEHOLD
3
Payroll Tax Deposit Less than $350 May 1, 2023
(DE 88) January, February,
EMPLOYERS and March
st th
(1 Quarter) 1 15 of the
$350 - $500
following month
3
Less than $350 July 31, 2023
April, May, and June
nd
(2 Quarter) th
1 15 of the
$350 - $500
following month
3
Less than $350 October 31, 2023
July, August,
and September
rd th
(3 Quarter) 1 15 of the
$350 - $500
following month
3
Less than $350 January 31, 2024
October, November,
and December
th th
(4 Quarter) 1 15 of the
$350 - $500
following month
1
If you withhold more than $500 in Personal Income Tax (PIT), refer to the California Deposit Requirement
table (edd.ca.gov/payroll_taxes/timely_payroll_tax_deposits.htm) or contact the Taxpayer Assistance Center
at 1-888-745-3886 to determine the correct due date of your tax payment.
2
If the deposit due date falls on a Saturday, Sunday, or a federal holiday, the due date is extended to the
next business day.
3
For household employers who have paid $1,000 or more in wages in a calendar quarter, a deposit of
Unemployment Insurance (UI) and Employment Training Tax (ETT) not previously paid is also due each
quarter by these due dates.
NOTE: All employers must electronically submit payroll tax deposits to the EDD. Refer to page 14 for
information on the e-file and e-pay mandate for employers and related noncompliance penalties.
edd.ca.gov 32 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 38 of 66 CU
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QUARTERLY HOUSEHOLD EMPLOYERS
2023 Due Dates and Delinquency Dates (Continued)
File and pay online using e-Services for Business (edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm).
It’s fast, easy, and secure. Refer to page 15 for more information.
Withholding Deposits
To ensure timely settlement of your electronic payments, please note:
• An Electronic Funds Transfer (EFT) Automated Clearing House (ACH) debit transaction must be
completed before 3 p.m., Pacific Time, on or before the last timely date to ensure a timely
settlement date.
• 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.
Quarterly Reports
Delinquent if Not Postmarked
EMPLOYERS
Form Filing Due Dates or Received by
Quarterly Contribution Return April 1, 2023
QUARTERLY HOUSEHOLD
and Report of Wages (DE 9) for filing period of January, May 1, 2023
February, and March
and
Quarterly Contribution Return and July 1, 2023
Report of Wages (Continuation) for filing period of April, May, and July 31, 2023
(DE 9C) June
October 1, 2023
for filing period of July, August, October 31, 2023
and September
January 1, 2024
for filing period of October, January 31, 2024
November, and December
If you cannot pay all or part of your taxes on time, you must still file the DE 9 and DE 9C. Penalty and
interest will be charged on each late payroll tax payment and report/return.
NOTE:
• When your DE 9 and DE 9C are electronically submitted to the EDD, the submission date is used
to determine if your returns are timely.
• For any quarter that you do not have wages to report, you are required to file a DE 9 and DE 9C
and indicate you have no payroll to report when electronically submitting the forms through
e-Services for Business. If you have any questions, contact the Taxpayer Assistance Center at
1-888-745-3886.
• All employers must electronically submit employment tax returns, wage reports, and payroll
tax deposits to the EDD. Refer to page 14 for information on the e-file and e-pay mandate for
employers and related noncompliance penalties.
edd.ca.gov 33 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 39 of 66 CU
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QUARTERLY HOUSEHOLD EMPLOYERS
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 Payroll Tax Deposit (DE 88) coupon.
The following table clarifies when and how to notify the EDD of adjustments to the DE 88.
Form Reason for Adjustment How to Make an Adjustment
Correcting Overpaid UI, ETT, SDI, and/or PIT on On the next DE 88 payment for the
QUARTERLY HOUSEHOLD a previously a DE 88 prior to filing your Quarterly same calendar quarter, reduce the
submitted Contribution Return and Report of amount of taxes due by the amount of
Payroll Tax Wages (DE 9 )and Quarterly Contribution the overpayment. Do not show credits
EMPLOYERS Deposit Return and Report of Wages (negative amounts) on the DE 88.
(DE 88) (Continuation) (DE 9C).
Overpaid UI, ETT, SDI, and/or PIT on a Claim the amount overpaid on line J when
DE 88 prior to filing DE 9/DE 9C and you you file your DE 9 at the end of the quarter.
cannot reduce the overpayment on your
next deposit within the quarter.
Over withheld PIT and • Do not refund overwithheld PIT to the
• DE 9 was filed. employee.
• DE 9C was filed. • Do not change the California PIT
withholding amount shown on the Form
• IRS Wages and Tax Statement Form W-2.
W-2 was issued to the employee.
• Do not file a claim for refund with the
EDD. The employee will receive a credit
for the PIT overwithholdings when filing
their California state income tax return
with the Franchise Tax Board (FTB).
Underpaid UI, ETT, SDI, and/or PIT prior to Submit a DE 88 and pay the amount due,
filing your DE 9 for the quarter. including penalty and interest. Indicate the
pay date on the DE 88.
Underpaid UI, ETT, SDI, and/or PIT and Submit a DE 88 for the additional amount
your DE 9/DE 9C was filed. due for the quarter, including any penalty
and interest, or pay the balance due
when you receive a Statement of Account
(DE 2176) in the mail.
Allocated the wrong amounts to specific Do not adjust. The EDD will make the
funds on a DE 88. necessary adjustments at the end of the
quarter when you file your DE 9.
When written permission is obtained from an employee, you are authorized to adjust any overwithheld or
underwithheld California PIT from the employee if the adjustment is made within the same calendar year
and before the IRS Form W-2 is issued.
Overwithheld SDI and/or PIT must be credited or refunded to your employee before you can take a credit
or receive a refund from the EDD. You should obtain a receipt from the employee whenever a credit
adjustment or repayment of overwithheld tax is made.
edd.ca.gov 34 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 40 of 66 CU
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QUARTERLY HOUSEHOLD EMPLOYERS
Correcting Previously Filed Reports and Returns
Electronic Adjustments: File adjustments online through e-Services for Business (edd.ca.gov/payroll_
taxes/e-Services_for_Business.htm) and follow the online instructions to make corrections to previously filed
reports and returns.
Paper Adjustments: The Quarterly Contribution and Wage Adjustment Form (DE 9ADJ) (PDF) (edd.
ca.gov/pdf_pub_ctr/de9adj.pdf) is used to request corrections to a previously filed DE 9 and/or DE 9C.
View the Instructions for Completing the Quarterly Contribution and Wage Adjustment Form (DE 9ADJ-I)
(PDF) (edd.ca.gov/pdf_pub_ctr/de9adji.pdf).
For assistance, please contact the Taxpayer Assistance Center at 1-888-745-3886 (voice) or TTY at
1-800-547-9565.
Use the following chart to determine when and how you should notify the EDD of adjustments.
Reason for
Form Adjustment How to Make an Adjustment
Correcting a Incorrect UI, File a DE 9ADJ. Complete Sections I, II and III with the correct
previously filed ETT, SDI, and/or information. Also, complete Section IV (items A and C) of the EMPLOYERS
Quarterly PIT information DE 9ADJ if a correction is needed to the DE 9C for the quarter.
Contribution reported.
Return and Report NOTE: If taxes are due, send a payment for the additional QUARTERLY HOUSEHOLD
of Wages (DE 9) tax amount due plus penalty and interest, if any, with the
DE 9ADJ.
Correcting a Incorrect File a DE 9ADJ. Complete Sections I, II, IV (items A and C) and
previously filed employee Social V. Refer to pages 3 through 5 of the DE 9ADJ-I for detailed
Quarterly Security number instructions and Examples 5-7 of wage line adjustments.
Contribution (SSN) and/or
Return and Report name reported.
of Wages
(Continuation) Incorrect wages File a DE 9ADJ. Complete Sections I, II, IV (items A and C) and
(DE 9C) and/or PIT V. Refer to pages 3 through 5 of the DE 9ADJ-I for detailed
information instructions and Example 4 of wage line adjustments.
for employees If DE 9 has been filed with incorrect information, also
NOTE:
previously complete Section III.
reported.
No SSN reported File a DE 9ADJ. Complete Sections I, II, IV (items A and C)
for employee. and V. 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, III, IV (items A and C)
not previously and V. Refer to pages 3 through 5 of the DE 9ADJ-I for detailed
reported. instructions and Example 2 of wage line adjustments.
NOTE: If taxes are due, send 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,
plan code(s) or items A and C) and V. Refer to pages 3 through 5 of the
previously DE 9ADJ-I for detailed instructions and Examples 1 and 9 of
reported. wage line adjustments.
A sample DE 9ADJ is available on pages 36 and 37
edd.ca.gov 35 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 41 of 66 CU
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QUARTERLY HOUSEHOLD EMPLOYERS
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.
QUARTERLYYou HOUSEHOLDcan 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,
EMPLOYERS 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 22YYQ1
_______________________________________________ Employer Account Number
Street Address: _______________________________________________PO BOX 12345 000-0000-0
City, State, ZIP Code: _______________________________________________ANYTOWN, CA 12345
Section II: Reason for Adjustment. Enter a detailed reason for the adjustments requested. (Required)
UNDERSTATED____________________________________________________________________________________________________1ST QUARTER BY $9, 00 5 .50 DUE TO ONE EMPLOYEE NOT REPORTED. REPORTED INCORRECT SSN/NAME FOR ONE EMPLOYEE.
Sectione-ServicesIII: RequestfortoBusinessAdjust the DE 9. (1) (2) (3)
Complete all fields. If requesting a credit (decrease) to Amounts Reported on Amounts That Difference
(edd.ca.gov/Payroll_Taxes/e-Services_SDI or PIT, you must also complete Line below. O DE 9 or Most Recent Should Have Been Debit/(Credit)
for_Business.htm) 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
1.1
(Includes Paid Family Leave)
F. SDI Withheld (SDI rate ____% times C) 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 Note below) 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
edd.ca.gov 36 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 42 of 66 CU
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QUARTERLY HOUSEHOLD EMPLOYERS
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 22YYQ 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 receivedth pay subject to UI for the pay period 1 2 2
which includes the 12 of the month.
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 Electronic Quarterly Wage Reports (DE 231WPC) (PDF)
(edd.ca.gov/pdf_pub_ctr/de231wpc.pdf) for additional information.
EMPLOYERS
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.)
Individual Wage Line Adjustments. Identify the adjustment type for each affected employee and complete the fields QUARTERLY HOUSEHOLD
C.
e-Servicesindicated. IncludeforonlyBusinessthe wage lines that need to be corrected. Make corrections to the quarter(s) in which the
(edd.ca.gov/Payroll_Taxes/e-Services_information was originally reported. Do not report negative amounts.
Adjustment Type for_Business.htm) Fields to Complete for Each Affected Employee
Add employee(s) 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.
Enter the information that should have been reported in fields C1 – C6. For name, SSN, or plan code corrections, enter
If a correction reduces wages or withholdings amount to zero, enter 0.00 in the the information previously reported in fields
field. C7 – C9. Leave these fields blank for all other
adjustment types.
C1. Social Security Number (SSN) C2.Employee Name (First, Middle 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 00 150 00
9,000 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 _____________________________ 01/01/2023
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 ___
edd.ca.gov 37 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 43 of 66 CU
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QUARTERLY HOUSEHOLD EMPLOYERS
No Longer Paying Wages
If you stop employing people to work in your home and do not intend to hire anyone in the future,
you will need to:
• Submit your final Quarterly Contribution Return and Report of Wages (DE 9) within
10 days of paying the final wages, regardless of the normal due date.
• Submit the Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C)
within 10 days of paying the final wages, regardless of the normal due date.
• Submit the Payroll Tax Deposit (DE 88) within 10 days of paying the final wages,
QUARTERLY HOUSEHOLD regardless of the normal due date.
• Close your employer payroll tax account after submitting the above within 10 days of
EMPLOYERS paying the final wages.
If you plan to employ people to work in your home in the future and are keeping your account open, but
do not have payroll this quarter, file a DE 9 and DE 9C online using e-Services for Business indicating you
do not have payroll to report. If you have an approved e-file and e-pay mandate waiver and file by paper,
select No Wages Paid This Quarter on the DE 9 and No Payroll on the DE 9C. These reports must be filed
even if no wages were paid in the quarter. Contact the Taxpayer Assistance Center at 1-888-745-3886 for
assistance.
Household employers may close their employer payroll tax account online using e-Services for Business
(edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm) and, if you resume paying wages in excess of
$750 in a calendar quarter, you may also request to reopen your employer payroll tax account.
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 38 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 44 of 66 CU
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REPORTING NEW EMPLOYEES
REPORTING NEW EMPLOYEES
The law requires all employers 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.
The NER assists California’s Department of Child Support Services and the Department of Justice in
locating parents to collect delinquent child support payments. The NER also cross-matches the employees
actual start-of-work date (not the date hired) data with the Unemployment Insurance (UI) benefit file. This
will result in the early detection and prevention of UI benefit overpayments.
Filing Options for Reporting New or Rehired Employees
The following options are available to report new or rehired employees:
1. File online using 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 (edd.ca.gov/forms).
When Due: You must report all newly hired employees (refer to Who Are Household Employees? on
page 4) within 20 days of the start-of-work date, which is the first day of work. Any employee that is rehired
or returns to work after a separation of at least 60 consecutive days must also be reported within the 20 days.
The following information must be included when reporting new employees:
Employer Information Employee Information
• EDD eight-digit employer payroll tax account number • First name, middle initial, and last name
• Federal employer identification number (FEIN) • Social Security number (SSN)
• Business name • Home address
• Business address • Start-of-work date
EMPLOYEES
• Contact person and phone number REPORTING NEW
A sample DE 34 is available on page 40.
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
Withholding Allowance Certificate (DE 4) (PDF) (edd.ca.gov/pdf_pub_ctr/de4.pdf) to avoid penalty and
interest charges. Your informal report should include all the information listed in the above table.
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
NOTE: If the people who work in your home are independent contractors, you do not need to report them
to the EDD (refer to Who Is Considered a Household Employee? on page 4). The requirement for
businesses and government entities to report independent contractors does not apply to household
employers.
If you are not sure if the people who work in your home are employees or independent contractors,
contact the Taxpayer Assistance Center at 1-888-745-3886 for assistance.
edd.ca.gov 39 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 45 of 66 CU
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REPORTING NEW EMPLOYEES
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.
DATE CA EMPLOYER ACCOUNT NUMBER BRANCH CODE FEDERAL ID NUMBER00340600
030423M 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
e-Services for Business
CA 12345 M 022522M D D Y Y
(edd.ca.gov/Payroll_Taxes/e-Services_
for_Business.htm)
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
REPORTING NEW
EMPLOYEE FIRST NAME MI EMPLOYEE LAST NAME
EMPLOYEES
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 40 Taxpayer Assistance Center 1-888-745-3886
DE 8829 Rev. 43 (1-23) (INTERNET) Page 46 of 66 CU
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FEDERAL WAGE AND TAX STATEMENT (FORM W-2)
FEDERAL WAGE AND TAX STATEMENT (FORM W-2)
As an employer, you are required to prepare a federal Wage and Tax Statement (Form W-2) for each
of your employees. You must provide your employees with their 2023 Form W-2 by January 31, 2024.
*Prepare the Form W-2 on the federal/state four-part paper form.
If you need information on Form W-2 reporting requirements, refer to the Internal Revenue Service (IRS)
Employer’s Tax Guide (Publication 15, Circular E). For instructions on completing Form W-2, refer to the
IRS publication 2023 General Instructions for Forms W-2 and W-3 available online by visiting the IRS
(irs.gov) or contact the IRS at 1-800-829-3676.
In addition to the federal information required, you must include California Personal Income Tax (PIT) wages,
PIT withheld, and State Disability Insurance (SDI) 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 (if any)
Box 19 (Local income tax) The abbreviation CASDI and SDI withheld
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:
○ Name of household employer, address, federal employer identification number (FEIN),
and the EDD eight-digit employer payroll tax account numbers.
○ The employee’s name, address, and Social Security number.
○ The amount of SDI withheld and/or paid directly by you.
• If the wages were not subject to SDI, show CASDI 0 (zero).
• If you paid SDI taxes without withholding the SDI from the employee’s wages, you should show
the SDI taxes as if they were withheld and increase the amount you report according to the formula
shown on the Information Sheet: Social Security/Medicare/State Disability Insurance/Federal
Income Taxes Paid by an Employer (DE 231Q) (PDF) (edd.ca.gov/pdf_pub_ctr/de231q.pdf).
Generally, the amount reported as California PIT wages on Form W-2 in Box 16 is the same as the federal
wages (Box 1).
If you discover an error on a previously issued Form W-2, refer to the IRS publication 2023 General
Instructions for Forms W-2 and W-3 for instructions on how to complete an IRS Corrected Wage and Tax
Statement (Form W-2C).
Send Forms W-2 and Forms W-2C to your employees and the Social Security Administration. Do not send the
state copies of Forms W-2 and Forms W-2C to the State of California (the EDD or the Franchise Tax Board).
* Employers failing to provide a Form W-2 to each employee, or who provide a false or fraudulent
statement, are subject to a penalty of $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 FEDERAL WAGE AND TAX STATEMENT (FORM W-2)
penalty for failure to file informational returns (Form W-2, Form 1099-MISC, or Form 1099-NEC) for
misclassified employees as provided pursuant to section 13052.5 of the CUIC. The amount of the penalty
is determined based upon the unreported payment 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 additional information.
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FEDERAL WAGE AND TAX STATEMENT (FORM W-2)
Earned Income Tax Credit Information Act
You may be eligible to receive the California Earned Income Tax Credit (CalEITC) starting with the calendar
year 2015 tax year. The CalEITC is a refundable state income tax credit for low-income working individuals
and families. The CalEITC is treated in the same manner as the federal Earned Income Tax Credit (EITC)
and generally will not be used to determine eligibility for welfare benefits under California law. To claim the
CalEITC, even if you do not owe California taxes, you must file a California income tax return and complete
and attach the form California Earned Income Tax Credit (Form 3514). For information on the availability of
the credit, eligibility requirements, how to obtain the necessary California forms, and get help filing, contact
the Franchise Tax Board at 1-800-852-5711 or visit CalEITC (ftb.ca.gov/file/personal/credits/california-
earned-income-tax-credit.html).
Effective January 1, 2008, all employers are required to notify all of their employees of the federal EITC.
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 must be provided at the same time or within one week, before or after, the employer provides
the employee with an annual wage summary, including, but not limited to, a Form W-2 or a Form 1099. The
notice must include instructions on how to obtain any notices available from the Internal Revenue Service
(IRS) for this purpose, including, but not limited to, the IRS Notice 797, orany 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,
STATEMENT (FORM W-2) FEDERAL WAGE AND TAX visit the IRS (irs.gov) or contact the IRS at 1-800-829-3676.
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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WHAT PAYROLL RECORDS MUST BE KEPT?
WHAT PAYROLL RECORDS MUST BE KEPT?
Employers are required to keep payroll records for at least four years. If you believe that you are not a
subject employer or your employees are exempt, state law requires that you maintain records of payments
made to people who provide household services 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, or
on a leave of absence, and independent contractors) and all payments made. Records must include the MUST BE KEPT?
following information for each worker:
WHAT PAYROLL RECORDS
• 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.
• Money paid:
○ Dates and amounts of payment.
○ Pay period covered.
○ Cash or cash value of in-kind wages (such as meals, lodging, bonuses, and gifts).
(Refer to Values of Meals and Lodging on page 11.)
• The amounts withheld from employee wages. (Note: You may be required to make withholding
deposits. Refer to Withholding Deposits on page 32.)
• Disbursement records showing payments to workers.
• Other information necessary to determine payments to workers.
You may use any payroll record that provides the information listed above. An Employee Earnings Record
sample is provided on page 44.
If you have any questions about the records you must keep, refer to Information Sheet: Employment Tax
Audit Process (DE 231TA) (PDF) (edd.ca.gov/pdf_pub_ctr/de231ta.pdf) or contact the Taxpayer Assistance
Center at 1-888-745-3886.
Would you like to learn how to calculate taxes and complete payroll tax forms?
Consider our Payroll Tax Seminars (Seminars.edd.ca.gov/Payroll_Tax_Seminars) or contact the Taxpayer
Assistance Center at 1-888-745-3886.
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UNEMPLOYMENT INSURANCE
Employee Earnings Record Sample
Date Hired/Rehired/
Employee’s Returned to Work
Name: _________________________________ From Layoff: ____________________________
Social
Security Last Date Services
Number: _______________________________ Were Performed: _________________________
Reason for
For Year Ending: _________________________ Separation: _____________________________
UNEMPLOYMENT
INSURANCE
Withholdings
State
Personal
Total Income
Federal Net Wages
Wages Tax (PIT) Income Tax (Total
Earned State (Optional (Optional Wages
Cash Noncash (Cash + Disability for for Earned–
Wages Wages Noncash Insurance Household Social Household With-
Pay Period Earned Earned Wages) (SDI) Employers) Security Medicare Employers) holdings)
Year Totals
Employer’s
Name: _________________________________________
Employee’s
Work Address: __________________________________ ________________________________
__________________________________ ________________________________
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UNEMPLOYMENT INSURANCE
Your Reserve Account
Once you pay $1,000 or more in cash wages to household employees during a calendar quarter, you are
required to pay Unemployment Insurance (UI) tax and Employment Training Tax (ETT) on each employee’s
wages up to the UI taxable wage limit each calendar year. Your UI reserve account is a record of the UI taxes
you have paid (credits) and the UI benefits that the Employment Development Department (EDD) has paid
(charges) to your former employees who were found eligible to receive UI benefits or who qualified for
reduced UI benefits when working less than full-time for you. Your UI reserve account is a paper account
for recordkeeping purposes and has no cash value. The difference between the credits and charges is the
reserve account balance, which may be positive or negative. Your account balance is used only to determine
your annual UI tax rate. If you have a negative UI reserve account balance as of June 30, you will not be
required to pay ETT for the following calendar year.
Notices
When your former employee (“claimant”) applies for UI benefits, the last employer reported by the claimant
will receive a Notice of Unemployment Insurance Claim Filed (DE 1101CZ or DE 1101ER). Only the
last employer of record will receive this notice to advise them that the claimant has filed a UI claim, and it
includes the reason the claimant stated for no longer working.
If you have any information that would affect the claimant’s eligibility for UI benefits, please complete the
INSURANCE
form and return it to the EDD within 10 days of the date the notice was mailed to you. If you believe that your
UNEMPLOYMENT
UI reserve account should not be charged for the benefits, it is important that you provide information by the
required deadline explaining why the claimant was terminated or the reasons the claimant gave for voluntarily
quitting. The DE 1101CZ and DE 1101ER include instructions that explain how to complete the forms. Your
information is needed to gather relevant facts that will assist the EDD in determining if the claimant is eligible
to receive UI benefits. Failure to respond timely may result in an increase to your UI tax rate.
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). Visit SIDES
(edd.ca.gov/Unemployment/SIDES.htm) to learn more.
If you respond to the notice within the legally required 10 days of the notice date and provide information
about why you think the claimant should not be eligible for UI benefits, the EDD will send you a Notice of
Determination and/or Ruling (DE 1080EZ). The DE 1080EZ advises you whether or not the claimant is
eligible for UI benefits and if your UI reserve account will be charged for UI benefits if the claimant is found
eligible based on the reason for separation from your employment. If you fail to respond to the DE 1101CZ
or DE 1101ER, or respond untimely, you are not entitled to a determination and/or a ruling. However, if you
respond untimely and provide the reason you are submitting the eligibility information untimely, 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 a determination and/or ruling. Also, if you respond untimely with eligibility information,
the EDD will conduct a determination of eligibility for UI benefits with the claimant regardless of whether you
are entitled to a notice of determination and/or a ruling.
If the EDD finds that a claimant is eligible to receive UI benefits, a Notice of Wages Used for
Unemployment Insurance (UI) Claim (DE 1545) is mailed to all base period employers after the first
benefit payment is sent to the claimant. If you are a base period employer, you will receive a DE 1545. The
DE 1545 will inform you of the wages used to establish the UI claim and the amount of potential charges to
your UI reserve account. All or part of the benefits paid to the claimant may be charged to your UI reserve
account.
If you believe that your UI reserve account should not be charged for the benefits, it is important that you
complete the form and return it by the required deadline to the EDD as indicated on the form. The DE 1545
includes instructions on how to complete the form. You will need to explain why your account should not
be charged for the UI benefits. If you previously responded to a DE 1101CZ or DE 1101ER for the same
employee concerning the same separation or other issue, you do not need to return the DE 1545.
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UNEMPLOYMENT INSURANCE
However, if you have new information that may affect the claimant’s eligibility for Unemployment
Insurance (UI) benefits, then you must report the new information to the EDD. Please complete the DE 1545
timely by returning it within 15 calendar days from the mail date of the notice. If the wage information
is incorrect, you must provide documentation to support 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) within 30 days from the mail date of the notice.
When a claimant is approved for California Training Benefits (CTB), a Notice of Potential Increased
Liability for Training Extension Benefits (DE 1545TE) is mailed to all base-period employers. This notice
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. If you believe that your UI reserve account
should not be charged for the training benefits, your protest must be mailed by the date indicated on the form.
UNEMPLOYMENT The response should provide information explaining why the claimant should not be eligible for CTB under
INSURANCE the California Unemployment Insurance Code section cited. If the DE 1545TE indicates that you previously
received a favorable ruling, your account will not be charged and no response will be necessary.
To maintain the integrity of the UI program, the EDD investigates cases of potential imposter fraud
and identity theft. As part of our investigation, you may receive a Request for Additional Information
(DE 1326ER) asking you to validate information provided to us by an individual who has filed a claim for UI
benefits. The DE 1326ER is mailed to the last employer and base-period employers to request additional
identifying information to validate the identity of the individual. Your prompt response to the DE 1326ER
will protect your employer payroll tax account from charges if the determination of eligibility results in a
disqualification, and it will assist the EDD in maintaining the integrity of the UI Fund.
You can find additional information on protecting your employer payroll tax account from fraudulent UI
claims, protecting your employees, and fighting imposter fraud by visiting Identity Theft Prevention
(edd.ca.gov/unemployment/fraud_prevention.htm).
NOTE: You should keep copies of all your responses to EDD notices for your records.
Notices of Determination, Ruling, or Modification
You will receive a notice from the EDD in response to the timely information reported regarding a claimant’s
eligibility for UI benefits on the DE 1101CZ, DE 1101ER, DE 1545, or DE 1545TE. Depending on the
specific circumstances involved, you will receive one of the following notices:
Notice Purpose
DE 1080EZ: Sent to an employer who responds timely to a DE 1101CZ, DE 1101ER, DE 1545,
• Notice of or DE 1545TE or who submits timely correspondence with claimant eligibility
Determination information other than information regarding a voluntary quit or discharge.
• Notice of Sent to an employer who responds timely to a DE 1101CZ or DE 1101ER with
Determination/ information regarding a voluntary quit or discharge. This notice informs the
Ruling employer whether or not their reserve account will be charged for UI benefits paid.
• Notice of Sent to an employer who responds timely to a DE 1545 with information regarding
Ruling separation(s) that occurred within the base period. This notice informs the employer
whether or not their reserve account will be charged for UI benefits paid.
DE 1080M: Sent to an employer who previously received a DE 1080EZ stating that the claimant
• Notice of was disqualified from receiving UI benefits. The purpose of this form is to inform
Modification the employer that the claimant’s disqualification period has ended and the claimant
has met the criteria required to receive UI benefits. This notice does not change the
original ruling issued to the employer.
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UNEMPLOYMENT INSURANCE
Appeal Rights
You have the right to file an appeal if you do not agree with the Employment Development Department
(EDD) determination about:
• A former employee’s eligibility to receive UI benefits.
• Charges made to your UI reserve account due to paid UI benefits.
You must send your written appeal to the EDD within 30 days of the mail date of the Notice of Determination
and/or Ruling (DE 1080EZ). The EDD will send you an acknowledgment of receipt and registration of
your appeal with the phone number for the Office of Appeals hearing the case. The Office of Appeals 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 1080EZ), 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 INSURANCE
Appeals Board (CUIAB). The CUIAB reviews appeals to decisions rendered by the ALJ. Both the CUIAB UNEMPLOYMENT
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 (DE 6412TF)
For copies of these publications, visit the State of California Unemployment Insurance Appeals Board
(cuiab.ca.gov/index.asp) or write to:
California Unemployment Insurance Appeals Board
Sacramento Office of Appeals
2400 Venture Oaks Way, Suite 100
Sacramento, CA 95833-4224
If you have any questions about appeals:
• Visit the Unemployment Insurance Appeals (edd.ca.gov/unemployment/appeals.htm).
• Visit the California Unemployment Insurance Appeals Board (cuiab.ca.gov).
• Contact UI customer service (edd.ca.gov/unemployment/contact_ui.htm) or 1-800-300-5616.
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UNEMPLOYMENT INSURANCE
Statement of Charges to Reserve Account (DE 428T)
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 the EDD 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, and it must be submitted within 60 days of the issued date on the notice. A protest
may also be filed in writing and must be 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
UNEMPLOYMENT before the protest deadline. When filing your protest, you must include your EDD eight-digit employer
INSURANCE 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.
For a sample form and detailed instructions on how to file a protest, visit Forms(edd.ca.gov/Forms) and
refer to the DE 428T Protest Sample Form (DE 428C) (PDF) (edd.ca.gov/pdf_pub_ctr/de428c.pdf) and
the Information Sheet: Statement of Charges to Reserve Account (DE 428T) (DE 428I) (PDF)
(edd.ca.gov/pdf_pub_ctr/de428i.pdf) 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 through e-Services
for Business.
Notice of Contribution Rates and Statement of UI Reserve Account (DE 2088)
The Unemployment Insurance (UI), Employment Training Tax (ETT), and State Disability Insurance (SDI)
tax rates and taxable wage limits may change each year. Each December, the EDD sends you a Notice of
Contribution Rates and Statement of UI Reserve Account (DE 2088) to notify you of your UI and ETT tax
rates and taxable wage limits for the upcoming year. For more information visit SDI rate (edd.ca.gov/en/
payroll_taxes/tax-rated-employers/). Your 2023 notice will show the items used to determine your UI rate
and the balance in your UI reserve account as of July 31, 2022.
Any item on the DE 2088 may be protested except SDI and ETT, which are specifically set by law. 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 with the associated tax rate year you are protesting within 60 days of the issued
date on the notice. A protest may also be filed in writing and 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. Refer to page 56 for more information.
Mail your written protest and/or request for an extension to:
Employment Development Department
Rate Management Group, MIC 4
PO Box 826880
Sacramento, CA 94280-0001
For further information, refer to 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.
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STATE DISABILITY INSURANCE
STATE DISABILITY INSURANCE
The State Disability Insurance (SDI) program provides Disability Insurance (DI) and Paid Family Leave
(PFL) benefits to eligible California workers who need time off of work due to a disability or family leave.
The SDI program is state mandated and funded by employee payroll deductions.
Disability Insurance
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.
Paid Family Leave
PFL is a component of the SDI program. PFL provides benefits to 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 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 resulting from a spouse, registered domestic partner,
parent, or child’s military deployment to a foreign country.
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). You are required to complete and return the
DE 2503 or DE 2503F within two working days. You may also submit the DE 2503 electronically through
SDI Online (edd.ca.gov/disability/SDI_Online.htm).
Your Unemployment Insurance reserve account will not be affected when your employees file DI and/or
PFL claims. You will not be notified of employee eligibility for DI and PFL benefits because employees pay INSURANCE
for DI and PFL through payroll deductions.
STATE DISABILITY
SDI Online
SDI Online is an electronic claim filing system available to employers, individuals filing for benefits,
licensed health professionals, 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.
If you have questions about DI, visit State Disability Insurance (edd.ca.gov/disability) or contact DI at
1-800-480-3287. If you have questions about PFL, visit Paid Family Leave (edd.ca.gov/disability/paid_
family_leave.htm) or contact PFL at 1-877-238-4373.
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ADDITIONAL RESOURCES
Other Employment Development Department
Programs and Services
SM
America’s Job Center of California
SM
Visit America’s Job Center of California (edd.ca.gov/office_locator) to find the nearest location to you.
State Disability Insurance
Disability Insurance (DI) and Paid Family Leave (PFL) are benefits paid under the SDI program.
DI and PFL customer service is available through the toll-free phone numbers listed below:
DI English ............................. 1-800-480-3287 PFL English ...............................1-877-238-4373
DI Spanish ............................ 1-866-658-8846 PFL Spanish ..............................1-877-379-3819
DI Hearing Impaired (TTY) ... 1-800-563-2441 PFL Cantonese ......................... 1-866-692-5595
PFL Vietnamese ........................ 1-866-692-5596
PFL Armenian ........................... 1-866-627-1567
PFL Punjabi ............................... 1-866-627-1568
PFL Tagalog .............................. 1-866-627-1569
PFL Hearing Impaired (TTY) ..... 1-800-445-1312
Employers: Contact the Employer Help Line at 1-855-342-3645. This phone number is only for employers.
For more contact information or office locations, visit Contact SDI (edd.ca.gov/en/Disability/Contact_SDI).
Unemployment Insurance
Unemployment Insurance (UI) customer service representatives are available through the toll-free phone
numbers listed below. When you call, an automated system will provide a menu of services. Press “5” for
the employer menu (available in English and Spanish) that provides UI and job service information.
English ................................. 1-800-300-5616
Spanish ............................... 1-800-326-8937
ADDITIONAL RESOURCES Cantonese ........................... 1-800-547-3506
Mandarin ............................. 1-866-303-0706
Vietnamese .......................... 1-800-547-2058
Hearing Impaired (TTY) ....... 1-800-815-9387
Customers who have filed a claim for UI benefits may call the automated self-service number at
1-866-333-4606. Press “5” for the employer menu (available in English and Spanish) for UI and America’s
SM
Job Center of California information. You can access information about UI claim processing, hiring
assistance, UI fraud, California payroll tax information, and an explanation of various employer forms.
In addition, there is a variety of UI information available for employers and claimants by visiting EDD
(edd.ca.gov). Information includes answers to several of the most frequently asked questions.
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ADDITIONAL RESOURCES
Other Agencies You May Contact
For assistance with:
• Federal tax requirements, visit the IRS (irs.gov) or call the IRS at 1-800-829-1040.
• Labor law requirements (such as overtime, minimum wage, and employee benefits) or to contact
the Division of Labor Standards Enforcement, visit the Department of Industrial Relations (DIR)
(dir.ca.gov/dlse).
• Workers’ Compensation requirements, visit the DIR (dir.ca.gov/dwc).
Help Us Fight Fraud
The “underground economy” is a term that 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. 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 competitive advantage over businesses that comply with the law because they do not pay
workers’ compensation, state, and federal payroll taxes. This causes unfair competition in the marketplace
and forces law-abiding businesses to pay higher taxes. To address this, the Employment Development
Department (EDD), in partnership with several other governmental entities, follows up on leads and conducts
on-site inspections of businesses throughout the state. To learn more about the Underground Economy
Operation (UEO) programs, visit Underground Economy Operations (edd.ca.gov/payroll_taxes/underground_
economy_operations.htm).
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 or edd.ca.gov/pdf_pub_ctr/de660s.pdf).
You can also request a DE 660 or contact UEO by:
Hotline: 1-800-528-1783
Fax: 1-916-227-2772
Email: ueo@edd.ca.gov
Online: Ask EDD (askedd.edd.ca.gov/AskEDD)
The brochure Paying Cash Wages “Under the Table” (DE 573CA in English or DE 573CA/S in Spanish)
(PDF) (edd.ca.gov/pdf_pub_ctr/de573CA.pdf or edd.ca.gov/pdf_pub_ctr/de573CAS.pdf) is available at
Forms and Publications (edd.ca.gov/payroll_taxes/forms_and_publications.htm) or by contacting the
Taxpayer Assistance Center at 1-888-745-3886.
At the EDD, we are dedicated to combatting fraudulent activity and protecting benefits for
legitimate California workers in need. To learn about how you can Help Fight Fraud visit
(edd.ca.gov/about_edd/fraud.htm).
ADDITIONAL RESOURCES
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ADDITIONAL RESOURCES
Employer’s 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. Toward that goal, we have developed the following
information 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 56 for the definition of “good
cause.”)
• Request a filing extension for of up to two months. 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.
ADDITIONAL RESOURCES Appeal certain actions to the California Unemployment Insurance Appeals Board (CUIAB).
•
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.
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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ADDITIONAL RESOURCES
Office of the Taxpayer Rights Advocate
The EDD’s 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
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 a Power 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.
ADDITIONAL RESOURCES
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GLOSSARY
Account Number The Employment Development Department (EDD) eight-digit employer payroll tax
GLOSSARY
account number assigned to each registered employer (for example,
000-0000-0). Always refer to your 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.
Annual Household An employer who pays $20,000 or less in wages in a calendar year and has
Employer elected to pay taxes annually. The employer submits an Employer of Household
Worker(s) Quarterly Report of Wages and Withholding (DE 3BHW) to the EDD
quarterly and an Employer of Household Worker(s) Annual Payroll Tax Return
(DE 3HW) with payment annually.
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] below) and Alternate
Base Period (see Base Period, Alternate [UI] below). 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
(UI) the 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 a
benefit amount.
Base Period, Standard The UI Standard Base Period is the first four of the last five completed calendar
(UI) quarters prior to the beginning date of the claim.
California The laws administering California’s UI, Employment Training Tax (ETT), SDI, and
Unemployment Personal Income Tax (PIT) programs. Visit CUIC
Insurance Code (CUIC) (leginfo.legislature.ca.gov/faces/home.xhtml) for more information.
Cash Wages Checks, currency, and electronic payments paid to people who work for you.
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GLOSSARY
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.
The bi-weekly Continued Claim (DE 4581) is used by claimants to certify
for UI benefits during the benefit year. The EDD has three methods that
unemployed individuals may use to certify for UI benefits. Claimants can GLOSSARY
SM
complete and submit a paper DE4581 by mail, use EDD Tele-Cert
to certify for benefits using the phone, or certify electronically through
SM
UI Online . After establishing a benefit year, a claimant may interrupt
his or her claim for a variety of reasons. For example, the claimant could
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 by filing an additional or reopened claim during the
benefit year.
• DI – The application that establishes a DI benefit period is called an initial
claim. Subsequent certifications on an active DI claim are called continued
claims. For each separate period of disability, a new 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, a new initial claim must be
filed.
Claimant A wage earner who files a claim for UI, DI, or PFL benefits.
Contributions Payroll tax payments for UI and ETT. The California Unemployment Insurance
Code refers to taxes under its provisions as contributions. In this guide,
contributions are generally referred to as “taxes”.
Disability Insurance Benefits paid to eligible California workers who have a loss of wages when they
(DI) are unable to work due to a non-work-related illness, injury, or pregnancy. DI
is a component of the State Disability Insurance program and funded through
employee payroll deductions.
Domestic Employee Same as Household Employee.
Domestic Employer Same as Household Employer.
Employment Training A payroll tax of 0.1 percent (.001) used to fund job training for people likely to
Tax (ETT) become unemployed or people who have been receiving UI benefits.
E-file and E-pay State law requires all employers to electronically submit employment tax returns,
Mandate wage reports, and payroll tax deposits to the EDD. Beginning January 1, 2018, all
for Employers employers became subject to this requirement.
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GLOSSARY
e-Services for Business Online tool that allows employers to manage their employer payroll tax accounts
GLOSSARY
online. New 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, and close and/or reopen
their account. For additional information about the EDD’s e-Services for Business
refer to page 15.
Exempt Employment Employment specifically excluded from coverage pursuant to the California
Unemployment Insurance Code.
Experience Rating The system by which an employer’s Unemployment Insurance (UI) contribution
rate is determined each calendar year based on previous employment experience.
Good Cause A substantial reason that provides a legal basis for an employer filing a tax
report or payment late. Good Cause cannot exist unless there are unusual
circumstances or situations that could not be reasonably foreseen; for example,
earthquakes or floods. For more information, refer to the Information Sheet,
Waiver of Penalty Policy (DE 231J) (PDF) (edd.ca.gov/pdf_pub_ctr/de231j.pdf) or
contact the Taxpayer Assistance Center at 1-888-745-3886.
Household Employee A person hired to work for wages in or around your home, same as Domestic
Employee.
Household Employer A person who hires one or more people to work for wages in or around his or her
home, same as Domestic Employer.
New Employee California’s new hire reporting program. Employers are required to report their
Registry (NER) new or rehired employees within 20 days of their start-of-work date. Refer to the
Report of New Employee(s) (DE 34) on page 39.
Noncash Wages Payments other than cash that are made to people who work for you; for example,
meals and/or lodging you provide to your employee(s).
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 funded
through employee payroll deductions.
Payroll Period The frequency you pay wages: daily, weekly, biweekly (every two weeks), monthly,
or etc.
Payroll Records Information you keep regarding wages paid to each employee.
Payroll Taxes (State) Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability
Insurance (SDI), and Personal Income Tax (PIT) withholding.
Personal Income Tax All wages paid that are subject to California PIT, even if no PIT is withheld. For
(PIT) Wages a calendar year, an employee’s PIT wages should match the amount reported in
Box 16 (state wages, tips, etc.) of the employee’s Internal Revenue Service Wage
and Tax Statement (Form W-2).
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GLOSSARY
Personal Income Tax Commonly known as state income tax, which you are not required to withhold
(PIT) Withholding from your household employees’ wages. You and your employee(s) may
voluntarily agree to withhold PIT.
Quarter A three-month period in a calendar year, as shown below:
Quarter Months in Quarter GLOSSARY
st
1 January, February, March
nd
2 April, May, June
rd
3 July, August, September
th
4 October, November, December
Quarterly Household A household employer who pays more than $20,000 in accumulated wages in
Employer a calendar year orwho has not elected to pay taxes annually. The employer
is required to submit payroll taxes (with a DE 88) and a Quarterly Contribution
Return and Report of Wages (DE 9) and a Quarterly Contribution Return and
Report of Wages (Continuation) (DE 9C) quarterly to the EDD.
Reserve Account A book account kept for each tax-rated employer to measure employment
experience and set the employer’s Unemployment Insurance (UI) tax rate. Your
UI reserve account is a paper account for recordkeeping purposes and has no
cash value.
SDI Online An electronic claim filing system available to employers, individuals filing for
benefits, licensed health professionals, Voluntary Plan employers, employers and
third-party administrators for submission of Disability Insurance (DI) and Paid
Family Leave (PFL) claim information.
Settlement Date The date an Electronic Funds Transfer (EFT) transaction is completed and posted
on the books of the Federal Reserve Bank and the state’s bank account.
SSN Also known as Social Security number. All employee wage records and claim
actions are filed under this number, rather than by name.
State Information Data Allows employers and third-party administrators to electronically receive and
Exchange System respond to the EDD’s Notice of Unemployment Insurance Claim Filed
(SIDES) (DE 1101CZ).
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. 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, 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 under the rules and regulations of the California
Unemployment Insurance Code.
Subject Quarter Calendar quarter when an employer first meets the requirements for reporting
their payroll taxes.
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GLOSSARY
Subject Wages Subject wages are used to determine Unemployment Insurance (UI), Disability
GLOSSARY
Insurance (DI), and Paid Family Leave (PFL) benefits. DI and PFL are
components of State Disability Insurance (SDI). Generally all wages, unless
otherwise excluded in the California Unemployment Insurance Code (CUIC), are
considered subject wages, regardless of the UI and State Disability Insurance
(SDI) taxable wage limits. Refer to inside front cover of this guide for current rates
and taxable wage limits.
Tax Return 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. For example, in 2023, the taxable wage limit for UI and
Employment Training Tax (ETT) is $7,000. Therefore, an employer’s UI and ETT
tax rate applies to the first $7,000 paid to each worker during the calendar year.
The taxable wage limit for SDI is $153,164. Since the SDI tax rate is (.011), the
maximum 2023 SDI tax on any one employee is $1,378.48. There is no limit
on the taxability of wages for California Personal Income Tax (PIT) withholding
purposes.
Unemployment Benefits paid to eligible California workers who are unemployed. Claimant(s) must
Insurance (UI) meet specific eligibility requirements in order to receive benefits, which are funded
by employer payroll taxes.
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 people who work for you whether paid by check, cash,
electronic debit, or the reasonable cash value of noncash payments, such as
meals and lodging.
Withholding Money deducted from your employees’ wages for SDI and California Personal
Income Tax (PIT). You must send SDI and PIT withholdings to the EDD at least
quarterly, unless you are an annual household employer.
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 58 Taxpayer Assistance Center 1-888-745-3886
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The EDD is an equal opportunity employer/program.
Auxiliary aids and services are available upon request to individuals with disabilities.
Requests for services, aids, and/or alternate formats need to be made by calling 1-800-547-9565.
TTY users, please call the California Relay Service at 711.
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PRESORTED STANDARD
U.S. POSTAGE
PAID
SACRAMENTO CA
PO Box 826880, Sacramento CA 94280-0001PO Box 826880, Sacramento CA 94280-0001 PERMIT NO. 800
OFFICIAL BUSINESS
PENALTY FOR PRIVATE USE $300
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