California Employer News and Updates
Find the latest tax news, annual updates, and resources to support you and your business.
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We‘ve updated our online services for employers for improved usability and added security. The following are the enhancements we’ve made:
- Employer Services Online:
- Redesigned with a new look and fee1 for an improved flow and design.
- Added a new password indicator feature to let you know in real time if you meet the requirements for creating a secure password.
- e-Services for Business:
- Enhanced the security questions for employer account access to protect your account from unauthorized access.
To better assist you with these changes, we’ve updated our enroll as an employer and enroll as representative webpages that include step by step instructions for enrolling in e-Services for Business. You can also view our e-Services for Business tutorials for further guidance.
You will receive your Notice of Contribution Rates and Statement of Unemployment Insurance (UI) Reserve Account (DE 2088) for the period of January 1, 2024, to December 31, 2024, by December 30, 2023. Carefully review all items on the DE 2088 as it informs you of your 2024 UI contribution rate, whether you are subject to Employment Training Tax (ETT), and all UI reserve account activity. For more information about the DE 2088 and your protest rights, see the reverse side of your DE 2088. You can also refer to the Explanation of the Notice of Contribution Rates and Statement of UI Reserve Account (DE 2088C) or contact the Employment Development Department (EDD) at 1-888-745-3886. For 2024, the UI taxable wage limit and the ETT taxable wage limit is $7,000 per employee. The ETT rate will remain at 0.1 percent (.001).
The State Disability Insurance (SDI) withholding rate for 2024 is 1.1 percent. Effective January 1, 2024, Senate Bill 951 removes the taxable wage limit and maximum withholdings for each employee subject to SDI contributions. New and updated DE 2088 notices issued to employers after May 6, 2022 no longer display the SDI rate. Instead, the DE 2088 includes an EDD website link where employers can find the SDI information. Visit Tax-Rated Employers (ca.gov) for more rate information.
Recent changes were made to employer registration requests in e-Services for Business to enhance account security. Please ensure you provide accurate and up to date information as the EDD will contact you when necessary to obtain additional information. Employer registration requests can take up to ten business days to process. More time may be needed for complex requests, accounts with tax exemptions, or specialized coverage. Visit Am I Required to Register as an Employer for more information on the registration process.
The Employment Development Department’s (EDD) bank for processing Automated Clearing House (ACH) Credit and Fedwire payments has changed from Union Bank to US Bank.
If you make payments using the ACH credit or Fedwire method, you will need to provide the new EDD bank account and routing transit number to your bank. The new bank information can be found in the Automated Clearing House (ACH) Credit Information Guide, DE 532.
A separate ACH Credit Filer Notification (DE 28C) with the US Bank information was mailed to employers who have previously submitted payroll tax deposits using the ACH Credit or Fedwire payment method.
For details about the ACH Credit payment method and for additional Electronic Fund Transfer (EFT) payment options, visit our EFT page.
If you have questions regarding this change, contact our Taxpayer Assistance Center at 1-888-745-3886.
Your annual Statement of Charges to Reserve Account (DE 428T) will be issued between August and September 2023. The DE 428T notifies you of the Unemployment Insurance (UI) benefit charges and credits to your reserve account from July 1, 2022, through June 30, 2023. The itemized charges to your reserve account are based on the UI benefits paid to your former employees. These charges may increase your UI contribution rate for the 2024 tax year; therefore, it is important to review your DE 428T for accuracy.
If you disagree with any of the charges listed on the DE 428T, you may file a protest within 60 days from the date the DE 428T was issued. Protests can be filed online through your e-Services for Business account. Using e-Services for Business is a fast, easy, and secure option. Click here for a video tutorial on how to file a protest online. Please refer to the Statement of Charges to Reserve Account (DE 428T) (DE 428 I) (PDF) or the DE 428T Protest Sample Form (DE 428C) (PDF).
If you need assistance enrolling or accessing your employer payroll tax account using e-Services for Business, or have questions on how to view your DE 428T online, contact the Taxpayer Assistance Center at 1-888-745-3886.
The Disability Insurance Elective Coverage (DIEC) program is available to small-business owners, entrepreneurs, independent contractors, and self-employed individuals who want Disability Insurance (DI) and Paid Family Leave (PFL) coverage. Individuals must meet eligibility requirements to apply for the program. Under DIEC, individuals receive up to 39 weeks of DI benefits for their own illness, injury, disability, or pregnancy. PFL benefits are available for up to 8 weeks in a 12 month-period and may be used to provide care to a seriously ill or injured family member, to bond with a new child entering the family, and to participate in a qualifying event because of a family member’s deployment to a foreign country. For more information about DIEC, please visit the Disability Insurance Elective Coverage webpage.
Interested in learning more about SDI? Sign up for one of our free, interactive webinars by sending an email to DIBOutreach@edd.ca.gov. Webinars are held the second Wednesday of every month from 10 a.m. to 11 a.m. Pacific time (PT) or available by appointment. *