California Employer News and Updates

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.

You will receive your Notice of Contribution Rates and Statement of Unemployment Insurance (UI) Reserve Account (DE 2088) for the period of January 1, 2023, to December 31, 2023, by December 30, 2022. Carefully review all items on the DE 2088 as it informs you of your 2023 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 2023, 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 SDI withholding rate for 2023 is 0.9 percent. The taxable wage limit is $153,164 for each employee per calendar year. The maximum to withhold for each employee is $1,378.48. New and updated DE 2088 notices issued to employers after May 6, 2022 no longer display the State Disability Insurance (SDI) rate and taxable wage limit. Instead, the DE 2088 includes an EDD website link where employers can find the SDI information. Visit Tax-Rated Employers for more rate information.

The Quarterly Contribution and Wage Adjustment Form (DE 9ADJ) is used to request corrections to a previously reported Quarterly Contribution Return and Report of Wages (DE 9) and Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C). The Voluntary Plan for Disability Insurance Quarterly Adjustment Form (DE 938) is used to request corrections to a previously reported Quarterly Contribution Return (DE 3D), and DE 9C. Revisions to the paper versions of the DE 9ADJ and DE 938 were undertaken with enhanced user experience in mind to make form completion faster, easier, and simpler. The updated forms resulted in a reduction of the number of entries required to report name and social security number corrections. The Instructions for Completing the Quarterly Contribution and Wage Adjustment Form (DE 9ADJ-I), and the Instructions for Completing the Voluntary Plan for Disability Insurance Quarterly Adjustment Form (DE 938-I) have been updated too.

You can also submit your quarterly adjustments electronically through the e-Services for Business website, which is a fast, easy, and secure way to manage your employer payroll tax account online. For instructions on adjusting previously filed returns, you may refer to the e-Services for Business User Guide (DE 160) or visit the e-Services for Business FAQs.

The Paid Family Leave (PFL) Military Assist benefit became available January 1, 2021. The benefit provides payments to employees who need time off work to participate in a qualifying event because of a family member’s military deployment to a foreign country.

Eligible recipients may receive 60 to 70 percent of their salary while taking PFL to assist their military family member. For the purposes of Military Assist, a family member is defined as a spouse, registered domestic partner, parent, or child. For more information, including eligibility requirements and examples of qualifying events, visit Paid Family Leave for Military Family Members. Our brochure, California Paid Family Leave for Military Family Members (DE 2550), and fact sheet, California Paid Family Leave for Military Families (DE 8714MA), are available to order and may be helpful to your employees. To learn more about the Military Assist benefit, sign up for our Paid Family Leave – Military Assist webinar by emailing DIBOUTREACH@edd.ca.gov.