Electronic Funds Transfer (EFT)
The Employment Development Department’s (EDD’s) bank for processing Automated Clearing House (ACH) Credit and Fedwire payments is changing from Union Bank to US Bank.
This change only affects you if you make payments from your bank using the ACH credit or Fedwire method and will require you to provide a new EDD bank account and routing transit number to your bank. This change will take effect May 30, 2023. For more information see the ACH Credit Payment Option below.
Electronic Funds Transfer (EFT) is a way to make payments to us. There are two ways to make EFT payments:
Automated Clearing House (ACH) Debit:
Make a payment by authorizing the State of California to electronically debit your bank account.
- Payment transactions must be completed before 3 p.m., Pacific time (PT), for the funds to settle on the next business day.
- There is no cost to use this method.
Automated Clearing House (ACH) Credit:
Make a payment by instructing your bank to debit your bank account and transfer those funds to the State’s bank account.
- Contact your bank to determine when you should start your payment so that it will settle into the State’s bank account on time.
- Check with your bank for any charges or fees.
California state law requires all employers to submit employment tax returns, wage reports, and payroll tax deposits electronically to us. For more information, refer to E-file and E-pay Mandate for Employers.
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 Method).
- Enroll one time, at no cost to you. Enroll now.
- 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 an electronic payroll tax payment. No enrollment is necessary for this payment option. You must 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 third-party vendor contracted by the State of California to collect EFT payments for us and other state agencies. Payments made through the State Data Collector are for Payroll Tax Deposit (DE 88) only.
The following payment options are available:
- Web Payer: Make your DE 88 payment to the State Data Collector. Online enrollment required.
- Phone Payer: Make your DE 88 payment using a security code by calling the State Data Collector at 1-800-554-7500. Online enrollment required.
- One-Time Pay: Make your DE 88 payment to the State Data Collector. No enrollment necessary.
- Bulk Filer Solution: Payroll agents or payroll services who start DE 88 payments on behalf of multiple taxpayers must register and create their own unique Bulk Filer ID. For more information, refer to Electronic Funds Transfer Bulk Filer Setup Guide (DE 154) (PDF). Their 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 1-916-654-7441 or mail it to:
Employment Development Department
e-Pay Group, MIC 15-A
PO Box 826880
Sacramento, CA 94280-0001
The State Data Collector, First Data, is not under the control of the EDD, and the EDD is not responsible for the contents or links in their website. The EDD recommends that you review the vendor’s security and confidentiality statements.
Using ACH Credit allows you to make a payment by instructing your bank to debit your bank account and transfer those funds to the State’s bank account. You do not have to complete an Electronic Funds Transfer (EFT) State Data Collector Program – Vendor (Third Party) New Enrollment Request Form (DE 26) (PDF) to use this method.
To report your 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 Information for Your Bank (DE 532) (PDF) to your bank. The DE 532 gives your bank specific instructions on how to transmit your DE 88 payment to us.
To make sure your payment is applied correctly to your employer payroll tax account, 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
- 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.
- SDI amount, PIT amount, and total.
- UI amount, ETT amount, and total.
- Penalty amount, Interest amount, and total.
The banking industry offers an electronic payment transmittal system called Fedwire. Upon approval from the EDD, a Fedwire payment can be used in an emergency situation. However, this is not one of the methods approved for ongoing transactions because of the risk of error and the extra cost involved for both the sender and receiver. Your financial institution may charge significant fees to process a Fedwire payment. Before remitting your tax payment by 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 date the funds are credited to the State’s bank account.
ACH Debit payments that are completed before 3 p.m. (Pacific time) can settle the next business day.
For ACH Credit payments, check with your bank to make sure your settlement date is on time.
Refer to the following rules to know when your payment must settle in the State’s bank account, based on your deposit schedule.
|If Your Federal Deposit Schedule/Requirement is:||PIT and SDI Must Settle in the State’s Bank Account|
|Next-Day||On or before the third business day following the payroll date.|
|Semiweekly, Monthly, or Quarterly||On or before the next business day following the due date.|
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