State Law Requires Employers to Electronically File and Pay to the EDD

Assembly Bill 1245 (Chapter 222, Statutes of 2015) extends to all employers the requirement to electronically submit employment tax returns, wage reports and payroll tax deposits to the Employment Development Department (EDD) beginning January 2017. Electronic filing and paying offers employers many benefits including:

  • Increased data accuracy in comparison to paper forms
  • Protected data through encryption that is more secure than paper forms
  • Reduced cost of printing, mailing and document storage
  • Elimination of lost mail

AB 1245 was phased-in over a two-year period to offer employers ample time to prepare. Effective January 1, 2018, all employers are required to file electronically.

Employers can file and pay electronically today with a simple one-time enrollment in the EDD’s e-Services for Business. Available 24-hours a day, 7-days a week, employers can start managing their employer payroll tax account online now. e-Services for Business is fast, easy and Secure! There is no cost to enroll and use e-Services for Business, and no specialized software is required.

The EDD is committed to supporting employers as they transition to fulfilling this new state requirement. For employers who may be unable to electronically file and pay, a hardship waiver application will be available. Click here for more information on these requirements and how the EDD can assist you.