Client Memo – New State Law for Employees

by | Mar 6, 2017 | Client Memo

Beginning January 1, 2017, employers with 10 or more employees will be required to electronically submit employment tax returns, wage reports, and payroll tax deposits to the Employment Development Department (EDD). All employers, including household employers, will be subject to this requirement beginning January 1, 2018. To comply with the e-file and e-pay mandate, employers will register for an online account using EDD e-Services here – e-Services for Business. For more information, please visit the EDD website – FAQs – E-file and E-pay Mandate or E-file and E-pay Tips for Employers.

This mandate contains a waiver provision for employers who are unable to electronically submit employment tax returns, wage reports, and payroll tax deposits. To request a waiver, employers must complete and submit a waiver request by mail or fax. A copy of the waiver can be downloaded here – E-file and E-pay Mandate Waiver Request. Employers will be notified by mail if their waiver is approved or denied. An approved waiver will be valid for one year. Upon the expiration of the approval period, an employer must start to electronically file and pay, or submit a new waiver request to avoid a non-compliance penalty. For more information, please refer to the EDD announcement – Information Sheet.

If you have any questions regarding the above, please do not hesitate to contact us.

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