FAQs - Electronic Funds Transfer

What is Electronic Funds Transfer (EFT)?

The EFT is a method of instructing financial institutions to transfer money from one bank account to another bank account electronically, eliminating the use of paper checks.

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What payment methods are available to make Electronic Funds Transfer (EFT) payments?

There are two methods for making EFT payments, Automated Clearing House (ACH) Credit and ACH Debit.

ACH Credit Method: The ACH Credit method allows employers to transfer funds by instructing their bank to debit their bank account and transfer funds to the State’s bank account.

  • There is no enrollment for the ACH credit method.
  • You need to provide your bank with an Information for Your Bank (DE 532). The DE 532 provides your bank with instructions on how to transmit ACH Credit transactions in the standard Cash Concentration or Disbursement plus Tax Payment Addenda (CCD+/TXP) format adopted for tax payments by the National Automated Clearing House Association. IMPORTANT: Use of any format other than CCD+/TXP will be rejected.

ACH Debit Method: There are two ACH Debit programs, the new EDD EFT Program and the State Data Collector Program.

  • EDD ELECTRONIC FUNDS TRANSFER (EFT) PROGRAM
    • Funds are transferred from the employer’s bank account through an ACH system directly to the State’s bank account. The data collector is eliminated. This program is for Payroll Tax Deposit (DE 88) and other payments.
  • STATE DATA COLLECTOR PROGRAM
    • Funds are transferred from the employer’s bank account to the State of California’s data collector through an ACH system to the State’s bank account. The State’s data collector is Metavante. This program is for Payroll Tax Deposit (DE 88) only.
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How do I enroll in the Automated Clearing House (ACH) Debit program?

  • EDD ELECTRONIC FUNDS TRANSFER (EFT) PROGRAM
    • There is no enrollment for the EDD EFT Program. But you must enroll in e-Services for Business on the EDD Web site to use this program. The bank information is entered online.
  • STATE DATA COLLECTOR PROGRAM
    • Employers must be enrolled in the Statewide EFT Program.
    • To enroll in the Statewide EFT Program, employers must submit an Electronic Funds Transfer Authorization Agreement (DE 26) with a pre-printed voided check or a completed Bank Specification Sheet attached. The DE 26 provides the bank information for the employer account from which debit entries will be made.
    • Fax your EFT enrollment to 916-654-7441 or mail to the address below:

      Employment Development Department
      Electronic Funds Unit, MIC 15-A
      P.O. Box 826880
      Sacramento, CA 94280-0001
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What are the benefits of using Electronic Funds Transfer (EFT)?

The EFT eliminates the need for a paper form and the costs related to mailing and check processing. EFT also allows for faster response times to payment inquiries because EFT payments post to your EDD account the next business day following the initiation of your payment.

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Can EDD debit my account without my knowledge or permission?

No. The Automatic Clearing House (ACH) Debit transactions can only be initiated by the employer or their representative with their username and password. Employers who use the ACH Credit method initiate their payments through their bank and must submit pre-arranged identifying information in order to make a payment.

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Is there a fee to use Electronic Funds Transfer (EFT)?

There is no cost to use the Automatic Clearing House (ACH) Debit Method. If you use the ACH Credit method through your bank, you are responsible for any charges and/or fees.

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Who is required to pay taxes by Electronic Funds Transfer (EFT)?

Employers are required to remit taxes by EFT if their State Disability Insurance (SDI) and Personal Income Tax (PIT) deposits averaged $20,000 or more during the prior State fiscal year (July 1 through June 30). The mandatory EFT requirement does not apply to Unemployment Insurance (UI) contributions or the Employment Training Tax (ETT).

Note: If you meet the requirement for mandatory EFT filing of your payroll taxes with EDD, you are also mandated to remit all child support wage withholding payments by EFT to the Department of Child Support Services’ State Disbursement Unit.

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Am I required to pay taxes by Electronic Funds Transfer (EFT) if I only remit one payment a year?

Yes, if that payment was made during the prior State fiscal year and was for $20,000 or more, that payment amount becomes your average and you will be required to remit all State Disability Income (SDI)/Personal Income Tax (PIT) deposits by EFT for the next calendar year.

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If I am a mandatory Electronic Funds Transfer (EFT) filer, will I be assessed a penalty for sending in my payment by check?

Yes. If you are required to remit State Disability Insurance (SDI)/Personal Income Tax (PIT) deposits by EFT and you remit those payments by any other means (e.g., check, cash, credit card, etc.), you will be assessed a penalty equal to ten (10) percent of the SDI and PIT contributions due plus interest. Voluntary EFT filers are not subject to the EFT Non-Compliance penalty.

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Can I participate on a voluntary basis?

Yes. We encourage employers who do not meet the mandatory requirement to voluntarily submit Electronic Funds Transfer (EFT) payments.

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Do tax preparers need special equipment or software to send their payments?

No, you simply need a computer with Internet access. The EDD’s “Attach a Bulk Payment File” option and the State data collector’s “Bulk Filer Solution” allow tax preparers to submit multiple employer payments in one file. Both applications are self-directed and provide grids for the manual entry of payments or for a file attachment with an import/export functions. The Bulk Payment option is for Payroll Tax Deposit (DE 88) only

  • EDD ELECTRONIC FUNDS TRANSFER (EFT) PROGRAM
    • Tax preparer’s clients do not need to be enrolled in an EFT program. For more information on the Attach a Bulk Payment File option, refer to the Electronic Funds Transfer Program Information Guide (DE 27).
  • STATE DATA COLLECTOR PROGRAM
    • Tax preparers are required to enroll for a unique bulk filer ID number and password and ensure that each of their clients are enrolled in the EFT program before sending their first payment file. For more Bulk Filer information refer to the Electronic Funds Transfer Bulk Filer Setup Guide (DE 154) or call the EFT Helpline at 916-654-9130.
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Is there a special format for bulk payment files?

  • EDD ELECTRONIC FUNDS TRANSFER (EFT) PROGRAM
    • You can use either the eXtensible Markup Language (XML) or Comma Separated Value (CSV) file format for the Attach a Bulk Payment File option. The Electronic Funds Transfer Program Information Guide (DE 27) provides detailed information for formatting file attachments.
  • STATE DATA COLLECTOR PROGRAM
    • The Electronic Funds Transfer Bulk Filer Setup Guide (DE 154) provides detailed information for formatting files for the Bulk Filer Solution.
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What type of payments can I make by Electronic Funds Transfer (EFT)?

You can make your tax deposits and any other payments using EDD EFT program. The State Data Collector program only accepts tax deposits.

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How do I ensure a timely tax deposit?

The Electronic Funds Transfer (EFT) tax deposits are not sent through the mail, so timeliness is determined by the settlement date (the date funds are credited to the State’s bank account). Automatic Clearing House (ACH) Debit Filers must initiate and complete their payment transactions before 3 p.m., Pacific Time to settle on the next business day. ACH Credit Filers need to contact their bank on when to report their payment for a timely settlement date.

Settlement dates can vary according to California Deposit Requirements:

  • Next-Day, Monthly, and Quarterly deposits - must settle into the State’s bank account on or before the next business day following the due date.
  • Semi-Weekly deposits - must settle into the State’s bank account on or before the third business day following the payroll date.

If the last timely settlement date falls on a Saturday, Sunday, or legal holiday, this settlement date is extended to the next business day. The legal holiday schedule for the current tax year is available on EDD’s Web site or call the Taxpayer Assistance Center at 855-866-2657.

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How do I ensure a timely payment for other EDD tax liabilities?

The Electronic Funds Transfer (EFT) payments for other tax liabilities are determined to be timely by the settlement date. Taxpayers must initiate and complete their payment transaction before 3 p.m. Pacific Time for the funds to settle on the next business day. If the last timely settlement date falls on a Saturday, Sunday, or legal holiday, the settlement date is extended to the next business day. View the legal holiday schedule or call the Taxpayer Assistance Center at 855-866-2657.

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Can I schedule a payment for a future date?

Yes, you can schedule an Automatic Clearing House (ACH) Debit payment on a predetermined settlement date up to 90 days in advance. This is called “warehousing” a payment. If you are an ACH Credit filer, contact your bank regarding warehousing services.

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Can I pay Unemployment Insurance (UI)/Employment Training Tax (ETT) and State Disability Insurance (SDI)/Personal Income Tax (PIT) in one payment?

  • EDD ELECTRONIC FUNDS TRANSFER (EFT) PROGRAM
    • Yes, you can pay UI/ETT, SDI/PIT and Penalty and Interest in one payment.
  • STATE DATA COLLECTOR PROGRAM
    • No, you cannot submit payroll taxes, penalty, and interest in one Electronic Funds Transfer (EFT) payment. If you are paying all payroll taxes plus penalty and interest, initiate one payment for your SDI/PIT deposit, a second payment for your UI/ETT, and a third payment for Penalty and Interest.
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Can I cancel a payment?

If you are an Automatic Clearing House (ACH) Credit filer contact your bank regarding payment cancellation.

If you are ACH Debit filer:

  • EDD ELECTRONIC FUNDS TRANSFER (EFT) PROGRAM
    • You can cancel a payment before 3 p.m., Pacific Time on the day before the settlement date.
  • STATE DATA COLLECTOR PROGRAM
    • You can cancel a payment before 3 p.m., Pacific Time on the day before the settlement date.
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Can I reverse the cancellation of a payment?

No, once a payment has been cancelled, it is deleted from the system. The payment will need to be re-entered and a new reference number will be generated.

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Can I view previous payments?

Yes, you can view all of your payment history online.

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What do I need to do if my bank account information changes?

If you are remitting payments using the Automatic Clearing House (ACH) Credit method, you do not need to notify EDD of the change.

If you are remitting Electronic Funds Transfer (EFT) payments using the ACH Debit method and your bank account information changes:

  • EDD ELECTRONIC FUNDS TRANSFER (EFT) PROGRAM
    • Enter your new bank information online.
  • STATE DATA COLLECTOR PROGRAM
    • Submit a new Electronic Funds Transfer Authorization Agreement (DE 26) and a copy of a voided check from the new bank account.
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Am I automatically registered to remit Electronic Funds Transfer (EFT) payments to EDD if I am registered with the Board of Equalization (BOE) or the Franchise Tax Board (FTB)?

No, each agency is separate from the others so you must register for EFT with each agency.

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Can I make all my California tax payments (e.g., income tax, sales and use tax, personal income tax withholding, etc.) to one State agency?

No, California does not have a Department of Revenue; each agency is separate from the others. Make your Electronic Funds Transfer (EFT) payments to the appropriate State agency based on the type of taxes you are remitting.

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How do I correct a payment that was transmitted with the wrong payment amount or sent to the wrong state agency?

If an Automatic Clearing House (ACH) Debit payment has not settled, cancel the payment and report it again correctly.

If you are an ACH Credit filer and the payment has not settled, you need to contact your bank for instructions.

If the payment has already settled, call EDD’s EFT Helpline at 916-654-9130 Monday to Friday 8 a.m. to 5 p.m., Pacific Time.

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What should I do if I have a problem making a payment using the Automatic Clearing House (ACH) Debit method?

  • EDD ELECTRONIC FUNDS TRANSFER (EFT) PROGRAM
    • Call EDD’s EFT Helpline at 916-654-9130 Monday to Friday 8 a.m. to 5 p.m., Pacific Time.
  • STATE DATA COLLECTOR PROGRAM
    • Call 800-554-7500. Press * to reach an operator.
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What should I do if I have a problem making a payment using the Automatic Clearing House (ACH) Credit method?

Contact your bank.

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Do you have an ACH Debit block on your bank account?

If you have selected to pay by ACH debit and have an ACH debit block on your bank account, you must inform your bank of EDD’s Company Identification number to avoid your tax payment being rejected. The Company Identification number is a 10-digit number used to identify an originator of the transaction.

  • EDD ELECTRONIC FUNDS TRANSFER (EFT) PROGRAM Company Identification number is:
    2282533055
  • STATE DATA COLLECTOR PROGRAM Company Identification number is:
    1282533055
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