Electronic Filing/Payment of Payroll Taxes

Effective January 1, 2017 employers with 10 or more employees must electronically submit employment tax returns, wage reports and payroll tax deposits to the Employment Development Department (EDD). All remaining employers that have less than 10 employees must begin reporting and paying electronically in 2018. However, if they report having 10 or more employees, before 2018, then they would have to begin reporting and paying electronically.

The Assembly Bill 1245 mandates that electronic reporting for unemployment insurance records are sent to the EDD. The EDD highly suggests that employers enroll in “e-Services for Business” to meet all requirements of submitting wage reports and funds.

What are the various benefits of electronic filing and payments?

A few of these include:

⁃    Increasing data accuracy

⁃    Reduces paper and mailing costs

⁃    Protects data through encryption

In addition, there is an extremely helpful site called “e-Services for Business,” where employers are able to follow with the e-file or e-pay mandate. This allows for a quick way to safely manage all employer payroll accounts online. By using this site, employers will be able to make payroll tax deposits pay liabilities, file tax returns and wage reports, and view their account online whenever.

For any employer unable to submit their tax returns, wage reports or payroll tax deposits online, there are waivers provided. The EDD started accepting these in July 2016.

If you need help with e-Services or a waiver, please let us know we are happy to assist.