Effective 2011, Important Payroll Tax Reporting Changes (Updated February 1, 2012)

REMINDER: The EDD has changed from Annual to Quarterly Reporting

Employers are no longer required to file the Annual Reconciliation Statement (DE 7) or the Quarterly Wage and Withholding Report (DE 6).

Employers are required to file both the following forms, effective January 2011, each quarter:

• Quarterly Contribution Return and Report of Wages (DE 9)
• Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C)

NOTE: This quarterly reporting change does not affect Annual Household employers, Disability Insurance Voluntary Plan filers, or Disability Insurance Elective Coverage filers.

For more information, please review the 2011 Payroll Tax Reporting Changes FAQs.

For Current e-Filers

Important information for e-Filers and online filers of forms
Report of New Employee(s) (DE 34) and Report of Independent Contractor(s) (DE 542).

On March 1, 2011, EDD introduced the new e-Services for Business. As a result, the new Quarterly Contribution Return and Report of Wages (DE 9) and the Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C), the DE 34, and the DE 542 can now be filed online through this new service. In addition, you can register a business, manage your payroll tax account, and make tax payments. All current users of EDD’s e-Services will need to re-enroll for an e-Services for Business username and password starting March 1, 2011. Please visit e-Services for Business to see all the new services and details on enrolling.

Change to Quarterly Reporting

Starting with the first quarter of 2011, employers will begin filing quarterly. The final versions of these forms are now available:

• Quarterly Contribution Return and Report of Wages (DE 9)
• Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C)

NOTE: Employers and/or agents who are required to file the DE 9 and DE 9C must file both each quarter.

For more information about 2011 payroll tax changes, please review the 2011 Payroll Tax Reporting Changes FAQs.

NOTE: Print specifications are available on EDD’s Payroll Taxes — Forms and Publications page.

School Employee Fund Employers

School Employee Fund (SEF) employers will file the NEW Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C) and continue to file the Quarterly Contribution Return for School Employers (DE 9423). See the reporting forms changes chart below for more information.

Reporting Forms Changes

The change to quarterly reporting will allow EDD and employers to identify overpayments more quickly, which will result in faster refunds. In addition, EDD will be able to promptly notify employers of any amounts due.

This chart describes the major forms changes:

Type	Old Reporting Method	New Reporting Method
Report contributions and withholdings: Unemployment Insurance (UI) Employment Training Tax (ETT) State Disability Insurance (SDI) Personal Income Tax (PIT)	Reconcile annually on the Annual Reconciliation Statement (DE 7).	Reconcile quarterly on the Quarterly Contribution Return and Report of Wages (DE 9).
Report detailed wage items for each employee.	Report on the Quarterly Wage and Withholding Report (DE 6).	Report on the Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C).
Adjustments to previously reported contributions and withholdings.	Report on the Tax and Wage Adjustment Form (DE 678).	Report on the Quarterly Contribution and Wage Adjustment Form (DE 9ADJ) for most employers. In 2011, Annual Household Employers will continue to use the DE 678.
School Employee Fund (SEF) Report detailed wage items for each employee.	Report on the Quarterly Wage and Withholding Report (DE 6).	Report on the Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C).
	Quarterly Contribution Return for School Employers (DE 9423)	No Change

Employers will still use the DE 6, DE 7, and DE 678 for years prior to 2011.

Payroll Tax Deposits

Employers will continue to make deposits using the Payroll Tax Deposit (DE 88ALL) form. The quarterly reporting change will not affect deposit and return due dates. Please refer to the California Employer’s Guide (DE 44) for deposit and reporting requirements.

NOTE: This quarterly reporting change does not affect Annual Household employers, Disability Insurance Voluntary Plan filers, or Disability Insurance Elective Coverage filers.