California Enforcing Penalties for Missing Account NumbersApril 11, 2019 Alert
California Employment Development Department is enforcing that all employers electronically submit tax returns, wage reports, and payroll tax deposits.
California Employment Development Department (EDD) is enforcing its E-file and E-pay mandate that requires all employers to electronically submit employment tax returns, wage reports, and payroll tax deposits. Per agency legislation, state law mandates electronic submission of tax returns, wage reports, and payroll tax deposits for all employers.
CA EDD E-File and E-Pay Mandate
In August 2015, California passed Assembly Bill (AB) 1245 requiring all employers to electronically submit employment tax returns, wage reports, and payroll tax deposits to the Employment Development Department (EDD). This law became effective for employers with 10 or more employees January 1, 2017 and for all employers January 1, 2018.
California EDD has been very lenient in the past year regarding checks and paper returns with missing account numbers. However, the agency has made it clear that that grace period is over and they will be enforcing penalties for checks and paper returns with missing account numbers.
What Do I Need to Do to Comply
In order to comply with the agency mandate, you will need to ensure you have provided Paylocity with your account number. You can verify your account number in your Web Pay Taxes Screen very easily by following these steps:
- Navigate to Web Pay > Company > Client Setup > Taxes Tile > View All
- Select the Code link to display the details.
- Select Cancel to return to the main screen.
NOTE: These steps can also be found in PEAK Article ID: PCTY-60949: View Available Tax Types
If the EIN field says Applied For, this means Paylocity does not have your account number. In order to meet the agency electronic mandate, we must have your account number in order to submit to the agency electronically.
CA EDD Agency Assistance
California EDD is available for assistance as well. Go to https://www.edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm for e-services for business if you need to create an account or if you need to access your account to update your information. You can also close or re-open your employer payroll tax account.
Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.