Which payroll tax form summarizes unemployment tax due? California EDD employer question

Ok so the DE 9 is the summary and DE 9C is the breakdown by employee? That makes way more sense. So when I'm calculating my UI tax liability for the quarter it all gets consolidated on the DE 9?

Exactly right. The DE 9 is where California EDD looks to see your total tax obligation. Think of it this way - DE 9 is the cover sheet that shows what you owe, DE 9C is the supporting documentation showing each worker's wages. Both get filed together every quarter.

This is correct. Just want to add that the DE 9 also covers more than just UI tax - it captures your Employment Training Tax (ETT) and State Disability Insurance (SDI) contributions as well as the UI portion. So it's really a complete employer payroll tax summary for all the state-level taxes California EDD administers.

The DE 34 is actually the Report of New Employee form - that's what you file when you hire someone new. Totally different purpose. The quarterly tax summary is the DE 9.

omg no wonder i was confused lol ok DE 9 got it, thanks

Yeah there are SO many DE forms it gets disorienting fast. DE 34 for new hires, DE 9 for quarterly tax summary, DE 9C for wage breakdown by employee. I kept a cheat sheet taped to my desk for the first year.

Three weeks of trying to get through?? That's brutal. I'll check out that Claimyr link - I really do need someone from California EDD to walk me through this because I have some unusual wage situations with my workers that I'm not sure how to handle on the form.

seconding this - employer services line is nearly impossible to get through especially during quarterly filing season. anything that helps you actually reach a person is worth knowing about

Yeah the timing matters too - everyone's trying to call before the quarterly deadline so the lines get even worse. If you have specific questions about how to calculate UI tax for part-time or variable-hour employees definitely try to get a live rep on the phone before you file.

Wait the taxable wage base caps at $7,000 per employee? So once I've paid an employee more than $7,000 in the calendar year I stop accumulating UI tax liability for that person?

That's exactly right. The $7,000 is a federal and state wage base threshold. Once any individual employee crosses that earnings threshold for the year, no more UI tax is calculated on their wages for the rest of that calendar year. Resets every January 1st.

New employer UI rates in California vary by industry though so make sure you're using the right rate for your business classification. California EDD assigns your rate based on your industry type when you first register as an employer. You can find your specific rate in your California EDD employer account online.

I feel this so deeply. Got disconnected twice this week before even getting to hold music. It's genuinely hard to run a business and also navigate this stuff without any support.

This is exactly why I mentioned Claimyr above - the employer services line during quarterly deadlines is particularly awful. That service specifically helped me get past the hold wall when I was in this same situation.

I saw that mentioned, gonna try it. At this point I'd try anything. I just need 10 minutes with someone who knows the DE 9 form and I can't get it.

This is super helpful context. So ETT and UI are both employer-paid (not withheld from employees) and they both appear on the DE 9?

Correct. UI and ETT are both employer-funded taxes - you pay them out of pocket, not by withholding from employees. SDI and PIT on the other hand are employee-paid taxes that you withhold and then remit to California EDD on their behalf. All four show up on the DE 9 but they work differently.

ETT rate is actually really low - it's been 0.1% for years. Most employers barely notice it. UI is the significant one to track especially if your rate goes up after your initial new employer period ends.

E-Services for Business is California EDD's online employer portal. You can file your DE 9 and DE 9C electronically through there instead of mailing paper forms. Actually once you hit a certain payroll threshold you're required to file electronically. If you're below the threshold it's optional but most people find it easier online.

oh so its the same DE 9 form just filled out digitally? the system walks you through the calculations?

Basically yes - the e-file version guides you through each field and does the math for you. Much less room for error than paper. Highly recommend setting up your E-Services for Business account if you haven't already.

Mandatory e-file kicks in if your average quarterly tax liability exceeds a threshold or if you have more than 10 employees. Even if you're not required to, e-filing gives you instant confirmation and a digital record of your submission which is valuable for your own records.

Yes DE 9 is the current quarterly employer tax return. The DE 7 is the Annual Reconciliation Statement which you file once a year - it reconciles all four quarters. Both are real forms but the quarterly summary you're probably thinking of is definitely the DE 9.

omg i have been using the wrong form. ok thank you. should i be worried about penalties for prior quarters?

If your underlying tax calculations were correct but you used a slightly outdated form version, California EDD typically processes it anyway and may send a notice asking you to refile with the current version. I'd call their employer services line or check your E-Services for Business account to see if there are any flags on your account. If you need to reach someone quickly that Claimyr service mentioned earlier in this thread seems useful for getting through the phone line faster.

This is incredibly helpful. I had no idea the deadline structure worked like that. I think I may have been late on my Q1 filing - is there a way to check my account status and see if a penalty has already been assessed?

Yes - log into E-Services for Business and check your account balance section. Any assessed penalties or interest will show there. If you see something unexpected you'll want to contact California EDD employer services to understand it before it grows.

late fees from California EDD compound quickly. if there's any question about your account status dealing with it sooner rather than later is always the right move

I don't think I ever got that packet actually - or maybe it got buried in the initial wave of new business mail. Good to know I can request it again.

It's called the Employer's Guide or something similar. Very thorough. California EDD also has it as a PDF on their website under the employer section if you just want to download it immediately.

Oh interesting - my workers do primarily residential landscaping, maintenance, hardscape installation. Not sure how California EDD classifies that. Would the DE 9 still be the same form even if agricultural rules apply?

Landscaping and groundskeeping is generally not classified as agricultural labor under California EDD definitions - agricultural labor has a specific definition related to farming operations, crop harvesting etc. Your workers are almost certainly standard employees for UI purposes. But worth verifying with California EDD if you have any workers doing anything that could be interpreted differently.

Yeah I should have been more specific - was thinking of businesses that have a mix of regular and farm work. For pure landscaping you're almost certainly in the standard category.

Yes, the experience rating kicks in after your initial new employer period. California EDD looks at the ratio of UI benefits paid out to former employees versus the wages you reported. Higher former-employee claims relative to your payroll generally means a higher UI rate. The calculation is complex and your new rate notice will come by mail - if you want to understand how it was calculated you basically need to call employer services or have a payroll specialist look at it.

So those two former employees filing claims will directly affect my rate going forward? I wish I had understood that before - I might have handled those separations differently.

Worth knowing you can contest benefit charges if you believe a former employee was terminated for misconduct or voluntarily quit without good cause - in those situations California EDD shouldn't charge the benefits against your account if you respond to the Notice of Claim Filed properly. If you didn't respond to those notices you may have missed the window to protest but it's worth reviewing.

Honestly same - it feels like there's a lot of support for the employee/claimant side of California EDD but the employer side is kind of a void. This thread has taught me more than hours of googling.

Consider finding a payroll service that specifically handles California EDD compliance. Some bookkeepers specialize in small business California payroll and will handle all your DE 9 filings for you. Might be worth the cost to have someone who eats and breathes this stuff.

that's actually a good idea. i do everything myself right now and it's too much

Generally yes, once you're registered as an employer with California EDD you typically need to file each quarter even if there were no wages paid - it would just be a zero-wage return. This keeps your account active and in good standing. If you've had zero activity for an extended period you may want to notify California EDD about your employment status.

ugh ok so i have to file even when there's nothing to report. good to know i was definitely just skipping those

Do not skip zero-wage quarters - California EDD can assess estimated taxes if you have no filing on record. Even a zero return is important to file.

Ok that is actually a strong reason to switch to e-filing. I've been doing paper because it feels more tangible but doing the math manually is where I keep second-guessing myself.

The e-file version also saves your employer rate and wage base thresholds automatically so you're not looking those up each quarter. Genuinely makes the process much less painful.

Plus you get a confirmation number immediately when you e-file. With paper you have no idea if California EDD received it until potentially weeks later if something went wrong.

You'd probably get better answers posting your own thread specifically about SDI - this one has turned into a pretty employer-focused discussion about DE 9 forms and payroll taxes. But there are definitely people in this community who know the employee-side California EDD stuff well.

Ok fair enough I'll make my own post, thanks

Thanks for this summary. This whole thread has been incredibly useful. Going to set up my E-Services account today and get the DE 9 filed before I stress myself into next quarter.

Good luck! Once you get the first one filed correctly the subsequent quarters get much faster. The California EDD employer system has a learning curve but it does get easier.

One last tip - keep copies of every DE 9 and DE 9C you file plus all payment confirmations. California EDD can audit employer records going back several years and having clean documentation makes any inquiry much less stressful.

Critical point especially in California where AB5 made worker classification much stricter. California uses the ABC test for determining employee vs. independent contractor status for UI purposes. If a worker doesn't pass all three criteria they're considered an employee and UI tax applies. California EDD audits can look back years and assess back taxes plus penalties.

This is something I should probably review for my landscaping crew. I have two people I've been treating as contractors but they work regular hours for me. Going to look into this.

California EDD has an online tool to help evaluate worker classification and there's a form you can file to request a determination if you're unsure. Way better to proactively clarify than get hit with a retroactive assessment.