Electronic Funds Transfer (EFT)
Electronic Funds Transfer (EFT) is an electronic method for making payments to the Employment Development Department (EDD). There are two methods for making EFT payments:
- Automated Clearing House (ACH) Debit: Initiate a payment by authorizing the State of California to electronically debit your bank account.
- Payment transactions must be completed before 3 p.m. (Pacific time), for the funds to settle on the next business day.
- There is no cost to use this method.
- Automated Clearing House (ACH) Credit: Initiate a payment by instructing your bank to debit your bank account and transfer those funds to the state’s bank account.
- Contact your bank to determine when you should originate your payment so that it will settle into the state’s bank account on time.
- Check with your bank for any charges and/or fees.
California law requires employers who meet certain criteria to submit all State Disability Insurance (SDI) and Personal Income Tax (PIT) deposits by EFT. Important changes have been made to this requirement beginning January 1, 2017, see “E-file and E-pay Mandate” below for more information.
State law requires all employers to electronically submit employment tax returns, wage reports, and payroll tax deposits to the EDD. This law became effective for employers with 10 or more employees January 1, 2017, and for all employers January 1, 2018.
- For more information, visit E-file and E-pay Mandate for Employers.
Note: Any employer currently required to electronically submit wage reports under California Unemployment Insurance Code (CUIC) section 1088(e) and/or remit deposits by electronic funds transfer under CUIC section 13021(d)(1) remain subject to those requirements.
e-Services for Business is your fast, easy, and secure way to manage your employer payroll tax accounts online.
- The EDD’s EFT program (ACH Debit Method).
- Simple one time online enrollment. Enroll now!
- Store and update your bank account information online.
- View your Payroll Tax Rates.
- Make Payroll Tax Deposit (DE 88) and all other account payments.
- Submit bulk payments.
- And more…
You can use Express Pay make an electronic payroll tax payment. No enrollment is necessary for this payment option. Just enter an employer payroll tax account number or letter ID and payment information to submit your payroll tax deposit or account payment online.
The State Data Collector is a third party vendor contracted by the State of California to collect EFT payments on behalf of the EDD and other state agencies. Payments made through the State Data Collector are for Payroll Tax Deposit (DE 88) only.
The following payment options are available:
- Web Payer: Initiate your DE 88 payment using a username and password on the State Data Collector’s secure website. Online enrollment is required to use this option.
- Phone Payer: Initiate your DE 88 payment using a security code by calling the State Data Collector’s at 1-800-554-7500. Online enrollment is required to use this option.
- One-Time Pay: Initiate your DE 88 payment on the State Data Collector’s website. No enrollment necessary.
- Bulk Filer Solution: Payroll agents or payroll services who initiate DE 88 payments on behalf of multiple taxpayers must register and create their own unique Bulk Filer ID. For more Bulk Filer information refer to the Electronic Funds Transfer Bulk Filer Setup Guide (DE 154).
- Each of their clients must:
- Have an active employer payroll tax account number and
- Be enrolled in the Statewide EFT (State Data Collector) Program before a payment will be accepted.
To enroll in the State Data Collector Program, submit an Electronic Funds Transfer (EFT) State Data Collector Program – Vendor (Third Party) New Enrollment Request Form (DE 26) by fax to 916-654-7441 or mail to the address below:
Employment Development Department
e-Pay Group, MIC 15-A
P.O. Box 826880
Sacramento, CA 94280-0001
The State Data Collector, First Data, is not under the control of the EDD, and the EDD is not responsible for the contents or links contained in their website. The EDD recommends that you review the vendor’s security and confidentiality statements.
The ACH Credit method allows you to make a payment by instructing your bank to debit your bank account and transfer those funds to the state’s bank account. You do not have to complete an Electronic Funds Transfer (EFT) State Data Collector Program – Vendor (Third Party) New Enrollment Request Form (DE 26) to use this method.
In order to report your DE 88 payment correctly, your bank must originate your payment using the approved National Automated Clearing House Association (NACHA) CCD+TXP Addenda record format. You need to provide your bank with an Information for Your Bank (DE 532). The DE 532 provides your bank with specific instructions on how to transmit your DE 88 payment to the EDD.
To ensure your payment is applied correctly to your employer payroll tax account, be sure to provide the following payment details to your bank:
- Employer payroll tax account number.
- Eight (8) digits, no spaces or hyphens.
- If you do not have an employer payroll tax account number, visit e-Services for Business to register.
- Deposit schedule
- Next-Day, Semiweekly, Monthly, or Quarterly.
- Payroll Date
- For SDI/PIT deposits, this is the date you paid your employees.
- For UI/ETT deposits, this is the quarter end date (03/31/YY, 06/30/YY, 09/30/YY, or 12/31/YY).
- For Penalty and Interest deposits, this is the quarter end date.
- Deposit amount for each tax type and the total, for example:
- SDI amount, PIT amount, and total.
- UI amount, ETT amount, and total.
- Penalty amount, Interest amount, and total.
The timeliness of your EFT payment is determined by the settlement date (the date funds are credited to the State’s bank account).
ACH Debit payments that are completed before 3 p.m. (Pacific time), can settle the next business day.
For ACH Credit payments, check with your bank to ensure a timely settlement date.
|If Your Federal Deposit Schedule/Requirement is:||PIT and SDI Must Settle in the State’s Bank Account|
|Next-Day||On or before the third business day following the payroll date.|
|Semi-weekly, Monthly, or Quarterly||On or before the next business day following the due date.|
If the last timely settlement date falls on a Saturday, Sunday, or legal holiday, the settlement date is extended to the next business day. Refer to the Legal Holidays page for a schedule of the current tax year or call the EDD’s Taxpayer Assistance Center at 1-855-866-2657. For more information, visit Calendar – Payroll Tax Due Dates.
For more information, visit the FAQ - Electronic Funds Transfer. The Electronic Funds Transfer Program Information Guide (DE 27) also provides detailed information on the EDD EFT Program.