CA EDD Payroll Tax Forms: Deadlines, E-Filing, and Penalties

California employers file a short family of EDD payroll tax forms: the DE 9 and DE 9C each quarter to report wages and reconcile taxes, the DE 88 to deposit the money, the DE 34 to report new hires, the DE 4 to set each employee’s state income tax withholding, and the DE 542 to report independent contractors. All of them must be submitted electronically through e-Services for Business.¹

DE 9 and DE 9C: Quarterly Wage Reporting

The DE 9 (Quarterly Contribution Return and Report of Wages) is the summary return. It shows total wages paid during the quarter and calculates what you owe after subtracting the DE 88 deposits you already made that quarter.²

The DE 9C is the detail report that goes with it. Where the DE 9 totals your numbers, the DE 9C breaks them down by individual employee: name, Social Security number, and wages earned that quarter.² The EDD uses that employee-level data to decide benefit eligibility if a worker later files for unemployment or disability, so names and SSNs need to be accurate.

Both forms are filed together, once per quarter, through e-Services for Business.

DE 88: Payroll Tax Deposits

The DE 88 (Payroll Tax Deposit) is how you actually send money to the EDD. One deposit covers all four payroll taxes at once: Unemployment Insurance, Employment Training Tax, State Disability Insurance withholding, and Personal Income Tax withholding.²

Deposit frequency depends on how much PIT you withhold. Employers withholding more than $350 of PIT in a pay period deposit on a shorter cycle than smaller employers, so check the deposit schedule tied to your tier before setting a routine.

DE 34: New Hire Reporting

Every new employee must be reported to the EDD on Form DE 34 (Report of New Employee) within 20 days of their first day of work. Rehires count too if the person was separated for at least 60 consecutive days before coming back.³ California uses this reporting for child support enforcement and to catch unemployment insurance fraud.

DE 4: Employee Withholding Certificate

The DE 4 (Employee’s Withholding Allowance Certificate) is California’s version of the federal W-4. Each employee fills one out so you know how much state income tax to withhold from their paychecks, based on filing status and allowances.⁴ If an employee never submits a DE 4, withhold as if they claimed zero allowances.

DE 542: Independent Contractor Reporting

If you pay an independent contractor $600 or more in a calendar year, you must report that contractor on Form DE 542 within 20 days of making the payment or entering into a contract for that amount, whichever comes first.⁵

The $600 threshold includes parts and materials, not just labor. The requirement covers individual contractors, sole proprietors, and single-member LLCs. If there’s no fixed contract amount, the reporting obligation starts once cumulative payments reach $600.⁵

What the Forms Report: The Four Payroll Taxes

The DE 9, DE 9C, and DE 88 all move the same four taxes through the system. Two are employer-paid, one is withheld from employees, and one is withheld based on each employee’s personal setup.

Unemployment Insurance (UI) is paid by the employer on the first $7,000 of each employee’s annual wages. For 2026, rates run from 1.5 percent to 6.2 percent under Schedule F+, based on the employer’s claims history. New employers pay 3.4 percent for two to three years.⁶
Employment Training Tax (ETT) is paid by the employer at 0.1 percent on the first $7,000 of each employee’s annual wages.⁶
State Disability Insurance (SDI) is withheld from employees at 1.3 percent for 2026. Since January 1, 2024, there is no taxable wage ceiling, so SDI applies to every dollar of wages.⁷
Personal Income Tax (PIT) is withheld from employees using the EDD’s withholding schedules and each employee’s DE 4.⁶

The removal of the SDI ceiling is the change that still surprises employers. Before 2024, SDI stopped once an employee crossed a set threshold; now it keeps running on every dollar, which raises the total SDI collected from higher-paid workers.⁷

On the DE 9 and DE 9C, wages must be split between UI/ETT subject wages (capped at $7,000 per employee per year) and SDI/PIT subject wages (no cap for SDI).⁶ Your account also needs the eight-digit employer payroll tax account number the EDD issued at registration on every return, deposit, and piece of correspondence.⁸

Quarterly Filing Deadlines

DE 9 and DE 9C returns are due by the last day of the month following the end of each quarter. If that date lands on a weekend or holiday, the deadline moves to the next business day.⁹

Q1 (January through March): April 30
Q2 (April through June): July 31
Q3 (July through September): October 31
Q4 (October through December): January 31 of the following year

Two 2026 dates shift. The Q3 2026 deadline of October 31 is a Saturday, so filings are due November 2. The Q4 deadline of January 31, 2027 is a Sunday, so the actual due date is February 1, 2027.⁹ DE 88 deposits run on their own cycle tied to PIT withholding size, separate from the quarterly return.

Electronic Filing Is Mandatory

Every California employer must file returns, wage reports, and payroll tax deposits electronically through e-Services for Business. The mandate applies to all employers regardless of size, including out-of-state employers with California workers.¹

Submitting paper forms without an approved waiver carries its own penalties:

DE 9 filed on paper: $50 per return.
DE 9C filed on paper: $20 per employee listed.
DE 88 submitted on paper: 15 percent of the deposit amount.¹

If you genuinely cannot file electronically, you can request a waiver using Form DE 1245W. Approved waivers last one year and must be renewed, and the EDD will only mail paper forms to employers with a current approved waiver.¹⁰

Fixing a Return You Already Filed: DE 9ADJ

Errors on a DE 9 or DE 9C are corrected with a DE 9ADJ (Quarterly Contribution and Wage Adjustment Form) for the specific quarter being fixed. You can submit it through e-Services for Business or mail the paper form.¹¹

A few rules apply:

Only one DE 9ADJ can be filed per quarter.
The original DE 9 and DE 9C for that quarter must already be on file.
If the correction creates additional tax owed, send payment with the form. Penalty and interest may apply.
Refund claims must be filed within three years of the original due date for that quarter, six months after an assessment becomes final, or 60 days from the date of overpayment, whichever is latest.¹¹

Attach a detailed explanation of why you’re adjusting. Vague reasons slow processing and often draw follow-up questions.

Penalties for Late Filing and Late Payment

Late payment of contributions triggers a 15 percent penalty on the unpaid amount, plus interest until the balance clears. If you file the DE 9C more than 60 days past a written demand from the EDD, you’ll owe $20 for each employee who should have been reported.²

The paper-filing penalties stack on top. An employer who files a late paper return without a waiver can face both the late penalty and the paper penalty at the same time. The EDD does recognize good-cause exceptions for some penalties, with the burden on the employer to show the reason. Technical problems with e-Services, natural disasters, or serious illness might qualify. Not knowing the rules does not.

1
Employment Development Department. E-file and E-pay Mandate for Employers
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Employment Development Department. Required Filings and Due Dates
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Employment Development Department. Report of New Employees – DE 34
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Employment Development Department. Employees Withholding Allowance Certificate
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Employment Development Department. Independent Contractor Reporting
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Employment Development Department. Contribution Rates, Withholding Schedules, and Meals and Lodging Values
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Employment Development Department. Contribution Rates and Benefit Amounts
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Employment Development Department. New Employer Resources
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Employment Development Department. Payroll Tax Calendar
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Employment Development Department. File and Pay Options
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Employment Development Department. Instructions for Completing the Quarterly Contribution and Wage Adjustment Form (DE 9ADJ)