Thursday, June 20, 2013

Required Filings with EDD

If you’re an employer in the state of California, there are several filings that you are required to file with Employment Development Department (EDD). Depending upon the circumstances of who you hire and how you hire them, you may need to file only one or two of forms below or you may need to file several.

Report of New Employees (DE34) – Must be filed any time you hire a new employee or rehire an employee after a break in employment of 60 days or more. The deadline for filing the form is 20 days from the date of the individual’s first day of work. Each time an employer fails to report a new hire, it  can result in a $24 fine. If the employee and employer agree not to report the new hire, the employer can receive a fine of $490. Form DE34 allows up to six new hires to be reported on the same form.

Report of Independent Contractors (DE542) – Payment of $600 or more, or entering into a contract with an independent contractor must be reported within 20 days. Up to three independent contractors can be included on form DE542.

Payroll Tax Deposit (DE88) – The timeframes for submitting payroll tax deposits can be found at the following here. Failure to include the DE88 form with the tax deposit can result in fines.

Quarterly Contribution Return and Report of Wages (DE9) – Must be completed quarterly and is due within 60 days of the due date. Failure to submit in a timely manner results in a 10% penalty.  Underpayment of the amount due will also result in a 10% penalty.

Quarterly Contribution Return and Report of Wages (Continuation) (DE9C) – Allows for reporting of employees over the seven allowed on the DE9 form. Be sure to file the DE9 and DE9C forms together.  If you are a company with an EDD number you must file this report even if you have no employees.

If you hire household workers in your home, the following forms are required:

Employer of Household Workers Quarterly Report of Wages and Withholdings (DE3BHW) – Similar to the DE9 form, but specifically for household workers.

Employer of Household Workers Annual Payroll Tax Return (DE3HW) – Tax return filed annually with EDD for reporting payroll for household workers.

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