Welcome to the Employment Development Department

Electronic Filing, Registration, and Payment Information

Electronic Funds Transfer (EFT)

Electronic Funds Transfer (EFT) is an electronic method for remitting your Payroll Tax Deposits (DE 88) for Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability Insurance (SDI), and Personal Income Tax (PIT) payments. Funds are transferred from your bank account to the State’s bank account. Your payment information is transferred to EDD at the same time, eliminating the need to send a DE 88 coupon and check. The following is a brief overview of the EFT program:

  • eServicesMandatory EFT Filing
    Each year your account is reviewed to determine if you meet the requirement for mandatory EFT filing. If the average amount of your SDI/PIT deposits made during the prior state fiscal year (July 1 through June 30), was $20,000 or more, you are required to pay all SDI/PIT deposits by EFT during the next calendar year, regardless of the dollar amount. First-time mandatory EFT filers are notified of their status by October 31, prior to the year of mandatory EFT participation. Employers who met the requirement in the preceding year will not receive another notice. Mandatory EFT participants are subject to a 10 percent Non-Compliance Penalty if an SDI/PIT deposit is paid by check with a DE 88 coupon or any method other than EFT. The UI/ETT payments are not subject to the Non-Compliance Penalty.
  • eServicesVoluntary EFT Filing
    If you do not meet the mandatory EFT requirement, you are encouraged to file by EFT on a voluntary basis. EFT is a secure, efficient, and cost-effective method to pay your payroll tax deposits.
  • eServicesPayment Methods
    There are two payment methods: the Automated Clearing House (ACH) Debit and (ACH) Credit:
    • ACH Debit Method: There are four ACH Debit reporting options available for employers to report their payment information to the State's data collector, Link2Gov – a Metavante® company, through a secure Web site or by telephone at (800) 554-7500.

      ACH Debit reporting options for employers to report their payment information are:
      • Web site
      • Telephone
      • The Just Pay It Option
      • The Web-based Bulk Filer Solution
      Just Pay It is a secure, easy, and convenient payment option that allows employers who are not registered in EDD’s EFT program to make DE 88 payments online using their savings or checking bank account. There are no processing fees for the Just Pay It option.

      The Web-based Bulk Filer Solution is for payroll services or reporting agents who initiate EFT payments on behalf of multiple taxpayers. In order to use this Web interface, agents must register with Link2Gov – a Metavante® company, and create their own unique Bulk Filer ID to be used when sending their payment transactions. All clients must be registered as an employer with EDD, be assigned an employer account number, and enrolled in the EFT ACH Debit Program before a payment will be accepted. For more Bulk Filer information refer to the Electronic Funds Transfer Bulk Filer Setup Guide (EFT-2) or call the EFT Helpline at (916) 654-9130.

      ACH Credit Method - Employers report their payments through their bank or a bank program that their bank offers, usually online or by telephone.
  • eServicesTimeliness
    The timeliness of your EFT payment is determined by the settlement date (the date funds are credited to the State's bank account).
    • Next Banking Day deposits - must settle in the State’s bank account on or before the third banking day following the payroll date.
    • Semi-Weekly, Monthly, and Quarterly deposits - must settle in the State’s bank account on or before the next banking day following the due date
    • Payments made using the Just Pay It option that are completed before 3 p.m., Pacific Time, can settle the next banking day. For ACH Credit payments, check with your bank to ensure a timely settlement. If a deposit due date or last timely settlement date falls on a Saturday, Sunday, or legal holiday, the last timely settlement date is extended to the next banking day. See the legal holiday schedule for the current tax year or call EDD’s Taxpayer Assistance Center at (888) 745-3886.
  • eServicesForms and Registration
    To register for EFT, complete form EFT Authorization Agreement (DE 26). If you are registering for the ACH Debit method, complete sections, 1, 2, and 4 and include a copy of a voided check or completed bank specification sheet. If you are registering for the ACH Credit method, complete sections 1, 3, and 4 and no voided check is required. Sign the form, then FAX to (916) 654-7441, or mail to the mailing address shown at the bottom of the form DE 26. For more information, refer to the EFT Information Guide (DE 27). The DE 26 and DE 27 can be ordered online, by telephone at (888) 745-3886, or through your local Employment Tax Office.
  • eServicesQuestions
    If you have questions about EFT, call the EFT Helpline at (916) 654-9130.

See Frequently Asked Questions