Electronic Funds Transfer (EFT)

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

• Access our EFT program (ACH Debit Payment).
• Enroll at no cost to you.
• 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.

You can use Express Pay to make a payroll tax online payment. No enrollment is necessary. Enter the following information to submit your payroll tax deposit or account payment online:

• Employer payroll tax account number or letter ID.
• Payment information.

For More Information
Refer to the e-Services for Business tutorial: Make a Payment Using Express Pay (YouTube).

The State Data Collector is a company hired by California to collect EFT payments for the EDD and other state agencies. The payments collected are only for Payroll Tax Deposits (DE 88).

Here are the ways you can pay through the State Data Collector:

• Web Payer: Sign up online to make a DE 88 payment to the State Data Collector.
• Phone Payer: After signing up, make your DE 88 payment using a security code by calling the State Data Collector at 1-800-554-7500.  
• One-Time Pay: Make your DE 88 payment without signing up.
• Bulk Filer Solution: If you are a payroll company paying for multiple businesses, you must register and get a Bulk Filer ID. For more information, refer to Electronic Funds Transfer Bulk Filer Setup Guide (DE 154) (PDF). Your clients must both:
• Have an active employer payroll tax account number.
• Be enrolled in the Statewide EFT (State Data Collector) Program before a payment will be accepted.

To enroll in the State Data Collector Program, submit an Electronic Funds Transfer (EFT) State Data Collector Program – Vendor (Third Party) New Enrollment Request Form (DE 26) (PDF) by fax to 1-916-319-1079 or mail it to:

Employment Development Department
EFT Enrollment, MIC 15-A
PO Box 826880
Sacramento, CA 94280-0001

The company that runs the State Data Collector, called First Data, is separate from the EDD. The EDD is not responsible for the contents or links on their website. We recommend that you review the vendor’s security and confidentiality statements.

Using ACH Credit allows you to make a payment by having your bank transfer money to the State’s bank account.

To report your Payroll Tax Deposit (DE 88) payment correctly, your bank must make your payment using the approved National Automated Clearing House Association (NACHA) CCD+TXP Addenda record format. Submit the Automated Clearing House (ACH) Credit Information Guide (DE 532) (PDF) to your bank. The DE 532 gives your bank specific instructions on how to send your DE 88 payment.

Be sure to give the following payment details to your bank:

• Employer payroll tax account number
  • Eight digits, no spaces, or hyphens.
  • If you do not have an employer payroll tax account number, visit e-Services for Business to register.
• Deposit schedule
  • Next-Day, Semi-weekly, Monthly, or Quarterly.
• Payroll Date (Pay Day)
  • For State Disability Insurance (SDI) or Personal Income Tax (PIT) deposits, use the date you paid your employees.
  • For Unemployment Insurance (UI) or Employment Training Tax (ETT) deposits, use the quarter end date (03/31/YY, 06/30/YY, 09/30/YY, or 12/31/YY).
  • For Penalty and Interest deposits, use the quarter end date.
• Deposit amount for each tax type and the total.
  Examples:
  
  • SDI amount, PIT amount, and total.
  • UI amount, ETT amount, and total.
  • Penalty amount, Interest amount, and total.

Fedwire is an electronic system that banks use to send payments quickly. The EDD will only allow you to use Fedwire for tax payments in limited circumstances with prior approval based on approval.

Fedwire is not meant for regular payments because it can be risky and costs more for both you and the State. Your bank might also charge high fees to send a Fedwire payment.

Before using Fedwire, please call the Electronic Payment Group (EPG) for approval and instructions at 1-916-654-9130.

We use the date the payment is received (known as the settlement date) to determine if your payment is on time. The settlement date is the day the money reaches the State’s bank account.

• If you pay with ACH Debit before 3 p.m.Pacific Standard Time (PST) (except holidays), your payment will be posted the next business day.
• If you pay with ACH Credit, your payment will post to your account the day you pay it, if completed by midnight (PST)

Read the following rules to know when your payment must settle in the State’s bank account, based on your deposit schedule.

If the last timely settlement date falls on a Saturday, Sunday, or legal holiday, the settlement date is extended to the next business day. Refer to Holidays schedule for the current tax year or call our Taxpayer Assistance Center at 1-888-745-3886.

For More Information

• Payroll Tax Calendar
• FAQs - Electronic Funds Transfer