New Employer Requirements for 2017

1 Fourth Quarter 2015. New Employer Requirements for 2017 . Assembly Bill (AB) 1245 (Chapter 222, AB 1245 contains a provision for a Additional benefits for reporting Statutes of 2015) requires all employers hardship waiver for employers who electronically include: to electronically file their employment are unable to file returns, reports, and tax returns, reports, and payments to the Reduces errors that are common with payments electronically. paper forms. Employment Development Department (EDD) beginning January 1, 20171. employers can enroll now in the EDD Protects data through encryption that e-Services for Business to fulfill these is safer and more secure than paper AB 1245, authored by Assembly Member Requirements .

2 No specialized software Ken Cooley and sponsored by Small forms. is required all you need is access to Business California, will be phased in the Internet and a computer, tablet, or Provides an automated receipt so over two years to offer employers ample smartphone. employers immediately know their time to prepare. return, report, or payment was The EDD e-Services for Business offers received. employers with 10 or more employees employers more accurate reporting in will become subject January 1, 2017 , a secured data environment and online Saves time by saving basic account and all other employers will be subject account management tools available 24 information for future transactions.

3 January 1, 2018. hours a day, 7 days a week. Allows employers to easily update account information. More Than Just a Number Reduces paper and mailing cost. Your Employer Payroll Tax Account Number For more information or technical assistance in making the transition The California Unemployment Insurance for the following reasons. The account to e-Services for Business, visit the Code (CUIC) Section 1086 requires you number: e-Services for Business website or contact to register as an Employer with the EDD the EDD Taxpayer Assistance Center at within 15 days after you hire one or more Is unique to your business and distinguishes your account from 888-745-3886, Monday through Friday, employees and pay wages in excess of 8 to 5 (Pacific Time).

4 $100 in a calendar quarter. others. Ensures reported wages, contribution 1. Any Employer required under existing When you register with the EDD you law to electronically submit wage reports will be assigned an Employer payroll tax payments made, and deposit coupons submitted are credited and/or electronic funds transfer to the account number. EDD prior to January 1, 2017 , will remain to your account correctly and in a Employer payroll tax account numbers timely manner. subject to those Requirements . are eight digits in length and conform to the format XXX-XXXX-X. Assists the EDD in maintaining an Annual Reminder: accurate record of the wages paid to Your Employer payroll tax account your employees.

5 Notification Requirements number is more than just a number You may be required to provide the Enables you to avoid erroneous estimated assessments, liabilities, and following to employees annually: 2016 Taxable Values penalties. Wage and Tax Statement, Form W-2. for Meals and Lodging Be sure to include your Employer Earned Income Tax Credit payroll tax account number on all The 2016 Taxable Value of forms, payments, deposit coupons, and (EITC) Notification Meals and Lodging rates are now correspondence submitted to the EDD. It Information Return, Form 1099. available. To view the rates, visit: could save you a lot of time and money For more information, go to Year 2016 Meals and Lodging.

6 Due to avoidable mistakes. End Notifications. Online. Anytime. e-Services for Business. California Employer 2 Fourth Quarter 2015. Available Now: 2016 Tax Rate Revised Commercial Employer Account Information Notice Registration and Update Form (DE 1) The 2016 UI taxable wage limit and the Employment Training Tax (ETT). The redesigned Commercial Employer necessary information is provided for a taxable wage limit is $7,000 per Account Registration and Update Form successful registration or change request. employee. The ETT rate will remain (DE 1) allows you to register for a new at percent (.001). Employer payroll tax account number or No time to mail in your form?

7 The easiest and most efficient way to register for, or You will receive your Notice of to make changes on an existing Employer update, an Employer payroll tax account Contribution Rates and Statement payroll tax account using one form. is to use e-Services for Business. of Unemployment Insurance (UI). With this update, the Change of Employer Reserve Account (DE 2088) for Account Information (DE 24) will no No fee to enroll and use. the period of January 1, 2016, longer be available for use. Fast, easy, and secure way to manage to December 31, 2016, by your payroll taxes. December 31, 2015. Look for improved questions and instructions to ensure a successful, timely Simple one-time online enrollment.

8 If you have moved and have a registration, or changes to your account. change of address or agent update, Most e-Services for Business features please inform the EDD immediately With the new form, you will be able to: are available 24 hours a day, 7 days in order to receive your DE 2088 by Register for an Employer payroll tax a week. December 31, 2015. account number. No matter which method you use, please Once you receive the DE 2088. remember: notice, carefully review all items Request an account for CalJOBS sm. as it provides you information Change your address. Employment occurs when an concerning: Employer engages the services of an Change your business name.

9 Employee for pay. Tax rates and UI reserve account activity. Change partners, officers, members, You become an Employer when you State Disability Insurance (SDI). or managers. employ one or more employees and rate and taxable wage limit. pay wages over $100 in a calendar Report the purchase or sale of a Whether you are subject to quarter. business. ETT. You must register with the EDD. Reopen a previously closed account. within 15 days of paying employee For specific rate information, you or your agent can go to e-Services for Request to close an account. wages in excess of $100. Business. Change ownership or entity status.

10 You are responsible for reporting For your protest rights, refer to wages paid to employees and paying the Explanation of the Notice of Take advantage of the smart interactive Unemployment Insurance and technology that has been added to the Contribution Rates and Statement of Employment Training Tax on the UI Reserve Account (DE 2088C). online PDF version of the form. wages, as well as withholding and remitting State Disability Insurance For assistance contact the Taxpayer This technology highlights required fields Assistance Center at 888-745-3886. based on your entries to ensure that all and Personal Income Tax. Are You in Compliance?