FAQs - Electronic Funds Transfer

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EFT is a method of transferring money from one bank account to another bank account electronically, eliminating the use of paper checks.

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

ACH Debit Method: There are three ACH Debit programs: e-Services for Business, Express Pay and the State Data Collector Program.

  • e-Services for Business – The EDD’s EFT Program (Recommended)
    • Funds are transferred from your bank account through an ACH system directly to the state’s bank account. This program is for Payroll Tax Deposit (DE 88), account, and voucher payments.
  • Express Pay
    • Funds are transferred from your bank account through an ACH system directly to the state’s bank account. This program is for Payroll Tax Deposit (DE 88), account, and voucher payments.
  • State Data Collector Program
    • Funds are transferred from your bank account to the state’s data collector through an ACH system to the state’s bank account. The state’s data collector is First Data Government Solutions. This program is for Payroll Tax Deposit (DE 88) only.

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

e-Services for Business is your fast, easy, and secure way to manage your employer payroll tax accounts online.

e-Services for Business features include:

  • 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…
  • e-Services for Business – The EDD’s EFT Program
    To access an employer payroll tax account online, you must first create a username and password. Visit e-Services for Business for step-by-step instructions under How to Enroll in e-Services for Business.
  • State Data Collector Program – Vendor (Third Party)
    To enroll in the Statewide EFT Program:

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

No. Both the ACH Debit and ACH Credit transactions can only be initiated by you or your employer representative/payroll agent.

There is no fee to use the ACH Debit method. If you use the ACH Credit method through your bank, you are responsible for any fees charged by your bank.

No, you simply need a computer with Internet access. You can submit multiple employer payments in one file using the Bulk Payment option. This option is for Payroll Tax Deposit (DE 88) only.

e-Services for Business – The EDD’s EFT Program (Recommended)

  • Tax preparer’s clients do not need to be enrolled in an EFT program.

For more information on e-Services for Business, refer to the e-Services for Business User Guide (DE 160) (PDF).

State Data Collector Program – Vendor (Third Party)

  • 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.

e-Services for Business

  • eXtensible Markup Language (XML) or
  • Comma Separated Value (CSV)

For more information on e-Services for Business, refer to the e-Services for Business User Guide (DE 160) (PDF).

State Data Collector Program - Vendor (Third Party)

  • Delimited File Format or
  • Fixed File Format

For more Bulk Filer information, refer to the Electronic Funds Transfer Bulk Filer Setup Guide (DE 154) (PDF).

e-Services for Business:

  • Payroll Tax Deposit (DE 88) and any other payments.

Express Pay:

  • Payroll Tax Deposit (DE 88), account, and voucher payments.

State Data Collector Program:

  • Payroll Tax Deposit (DE 88) only.

ACH Credit:

  • Payroll Tax Deposit (DE 88).
  • Quarterly Contribution Return (DE 3D).
  • Levy payments.

Yes, you can schedule an ACH Debit payment for a future date up to 90 days in advance. This is called warehousing a payment. If you submit payments through your bank, contact your bank regarding warehousing services.

ACH DEBIT PAYMENTS:

Payments can be cancelled if the request is received and processed before 3 p.m., Pacific time, the day before the settlement date.

  • e-Services for Business:
    • You can cancel direct entry payments and entire bulk payment files submitted through e-Services for Business by withdrawing the pending request.
    • A written request is required to cancel an individual payment within a bulk payment file submitted through e-Services for Business. The EDD will need to receive and process your request prior to 3 p.m., Pacific time, the day before the settlement date.

      Fax the written request to 1-916-654-7441 and include the following information:

      • EDD employer payroll tax account number
      • Business legal name
      • Payroll date
      • Payment amount
      • Submission date
      • Settlement date
      • Signature
      • Requestor contact information (name, title, phone, and fax number)
  • State Data Collector Program – Vendor (Third Party):
    • Bulk Filers/Web Payers/Phone (IVR):
      • Contact the State Data Collector at 1-800-554-7500, Monday through Friday, 8 a.m. to 3 p.m., Pacific time, or
      • Log in to your account and follow the instructions provided in the Webpayer FAQs.
    • One-Time Pay Option:
      • Contact the State Data Collector at 1-800-554-7500, Monday through Friday, 8 a.m. to 3 p.m., Pacific time, except on state holidays, and provide the confirmation number for the payment you wish to cancel.
    • Federal/State Employment Taxes (FSET)/Third-Party Software:
      • A written request is required to cancel an individual payment within a bulk payment file that was submitted through FSET. The EDD will need to receive and process your request prior to 3 p.m., Pacific time, the day before the settlement date.

        Fax the written request to 1-916-654-7441 and include the following information:

        • EDD employer payroll tax account number
        • Business legal name
        • Payroll date
        • Payment amount
        • Submission date
        • Settlement date
        • Signature
        • Requestor contact information (name, title, phone, and fax number)

ACH CREDIT PAYMENTS:

Contact your financial institution directly.

CREDIT CARD PAYMENTS:

Contact Official Payments Corporation at 1-800-487-4567, Monday through Friday, 7 a.m. to 7 p.m., Central time, except on state holidays.

Yes, you can view your payment history using the following methods:

  • e-Services for Business:
    • View your payment history regardless of payment method.
  • State Data Collector Program – Vendor (Third Party):
    • Your payment history is stored for a three-year period. Only payments made through the State Data Collector Program can be viewed.
  • ACH Credit:
    • Contact your bank.

If you need to make changes to your bank account information, updates can be made using the following:

  • e-Services for Business:
    • Enter your new bank information online.
  • State Data Collector Program – Vendor (Third Party):
    • Enter your new bank information online.
  • ACH Credit:
    • You do not need to notify the EDD of the change.

No, each agency is separate from the others. Make your EFT payments to the appropriate state agency based on the type of taxes you are remitting.

If an ACH Debit payment has not settled, cancel the payment and report it again correctly.
If you made a payment through your bank and the payment has not settled, you need to contact your bank for instructions.

If the payment has already settled, for more information on how to correct prior deposits refer to How to Correct Prior Reports, Returns, or Deposits.

e-Services for Business or Express Pay:

  • Contact the Taxpayer Assistance Center at 1-888-745-3886, Monday through Friday, 8 a.m. to 5 p.m., Pacific time.

State Data Collector Program – Vendor (Third Party):

  • Call 1-800-554-7500. Press * to reach an operator.

ACH Credit: Contact your bank.

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 the EDD’s Company Identification number to avoid your tax payment being rejected.

The EDD’s Company Identification number is a 10-digit number used to identify an originator of the transaction.

  • e-Services for Business: 2282533055
  • State Data Collector Program – Vendor (Third Party): 1282533055

If an EFT transaction does not settle timely, a penalty of 15 percent (10 percent for periods prior to third quarter 2014) plus interest is charged on late payroll tax payments. If you are submitting an untimely payment, you may include self-assessed penalty and interest with your payment.

Proof of payment for an EFT transaction is your bank statement showing the transfer of funds from your bank account into the state’s bank account. The reference or confirmation number does not constitute proof of payment; it only assists in locating data transmission. If proof of payment is required, it is the taxpayer’s responsibility to work with their bank to obtain verification that funds were transferred from their bank account to the state’s bank account.

The EDD is notified by your bank when a payment was unable to be processed. You will be notified by mail and instructed to resubmit your payment. The letter will contain a reason code that explains why the payment was rejected. Below are some of the common reasons payments are rejected:

  • Bank account was not open and/or had insufficient funds.
  • Invalid bank account number.
  • Routing and bank account numbers were not entered correctly.
  • EDD debits were blocked by your bank. Contact your bank to remove any blocks on the account that would prevent EDD debits and provide your bank with the EDD Company Identification numbers shown below:
    • e-Services for Business: 2282533055
    • State Data Collector Program (Vendor – Third Party): 1282533055

The EDD receives a Notice of Change from your bank on payments submitted with invalid bank information such as an incorrect routing number. Your bank may correct the information and process the payment.

You will be notified by mail and instructed to update or correct the bank information before submitting your next payment to prevent future payments from being rejected by your bank.

Note: Anyone using payroll software to store bank information to report payments must make the corrections within the software before submitting their next payment.