How to Correct a Payroll Tax Deposit (DE 88)
Refer to the table below for instructions on how to proceed if you reported the incorrect amounts on a previously filed DE 88. Deposits can be corrected through e-Services for Business even if the deposit was made using a paper DE 88 coupon.
| Type of Adjustment | How to Make Adjustment |
|---|---|
| Overpaid Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability Insurance (SDI), or Personal Income Tax (PIT) on a DE 88 prior to filing the Quarterly Contribution Return and Report of Wages (DE 9) for the quarter. |
On the next Payroll Tax Deposit (DE 88) for the same calendar quarter, reduce the amount of taxes due by the amount of the overpayment. Do not show credits (negative amounts) on the DE 88. If you cannot reduce the overpayment on your next deposit within the quarter, claim the amount overpaid in the Total Taxes Due or Overpaid field of your DE 9 when you file your return for the quarter. |
|
Underpaid UI, ETT, SDI, or PIT prior to filing the DE 9 for the quarter. |
Submit a DE 88 and pay the amount due, including penalty and interest. Indicate the pay date on the DE 88. The penalty amount is 15% of the portion of the payment that is late. Need help calculating interest? Click here. |
| Allocated the wrong amounts to specific funds on a DE 88 prior to filing the DE 9 for the quarter. | Do not adjust. The EDD will make the necessary adjustments at the end of the quarter when you file your DE 9. |
| Underpaid UI, ETT, SDI, or PIT and your DE 9 for the quarter was previously filed with correct information. |
Submit a DE 88 for the additional amount due for the quarter, including penalty and interest, or pay the balance due when you receive a Statement of Account (DE 2176) in the mail. Indicate the pay date on the DE 88. The penalty amount is 15% of the portion of the payment that is late. Need help calculating interest? Click here. |
Note: Overwithheld SDI or PIT must be credited or refunded to your employee before you can take a credit or receive a refund from the EDD. You should obtain a receipt from the employee whenever a credit adjustment or refund of overwithheld tax is made.
All employers are required to electronically submit employment tax returns, wage reports, and payroll tax deposits to the Employment Development Department. You can use e-Services for Business to comply with the e-file and e-pay mandate. For more information and approved electronic filing and payment methods, visit E-file and E-pay Mandate for Employers.
Contact the Taxpayer Assistance Center at 1-888-745-3886 for additional assistance.
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If you have questions, Contact Payroll Taxes. You can also contact the Taxpayer Assistance Center at 1-888-745-3886 or visit your local Employment Tax Office.