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Employment Development Department
Employment Development Department

E-file and E-pay Mandate for Employers (Assembly Bill 1245)

New state law mandates electronic submission of tax returns, wage reports, and payroll tax deposits for all employers.

Effective January 1, 2017, employers with 10 or more employees are required to electronically submit employment tax returns, wage reports, and payroll tax deposits to the Employment Development Department (EDD). All remaining employers will be subject to this requirement beginning January 1, 2018. Any employer required under existing law to electronically submit wage reports and/or electronic funds transfer to the EDD will remain subject to those requirements.

For more information, visit FAQs – E-file and E-pay Mandate for Employers.

Benefits of Electronic Filing and Payments

File and Pay Electronically with e-Services for Business

Employers can use e-Services for Business to comply with the e-file and e-pay mandate. e-Services for Business is a fast, easy, and secure way to manage your employer payroll tax accounts online. With e-Services for Business, you can:

Waiver

This mandate contains a waiver provision for employers who are unable to electronically submit employment tax returns, wage reports, and payroll tax deposits.

To request a waiver, employers must complete and submit the E-file and E-pay Mandate Waiver Request (DE 1245W).

Here are the ways to obtain a DE 1245W:

Waiver requests can be submitted by mail or fax to:

Mail:   
Employment Development Department
Document and Information Management Center
PO Box 989779
West Sacramento, CA 95798-9779

Fax:     916-255-1181

Employers will be notified by mail if their waiver is approved or denied. An approved waiver will be valid for one year. Upon the expiration of the approval period, an employer must start to electronically file and pay, or submit a new waiver request to avoid a non-compliance penalty.

Penalties for Not Complying with the E-file and E-pay Mandate

Penalties for non-compliance will be charged in accordance with Sections 1112, 1112.1, and 1114 of the California Unemployment Insurance Code. You can use e-Services for Business to meet the requirements of the mandate and avoid the penalties below.

 
TypeForms Penalty
Tax Returns
  • DE 9 – Quarterly Contribution Return and Report of Wages
  • DE 3HW – Employer of Household Worker(s) Annual Payroll Tax Return
  • DE 3D – Quarterly Contribution Return
$50 per return
    
Wage Reports
  • DE 9C – Quarterly Contribution Return and Report of Wages (Continuation)
  • DE 3BHW – Employer of Household Worker(s) Quarterly Report of Wages and Withholdings
$20 per wage item
   
Payments
  • DE 88 – Payroll Tax Deposit
15% of amount due

Additional Resources

Other Electronic Filing and Payment Options

The following options also fulfill the e-file and e-pay mandate: