California payroll reporting is going all electronic

Your Guide to State, Local, Federal, Estate + International Taxation

California payroll reporting, business, employer, employeeThe California Employment Development Department (EDD) is reminding employers that Assembly Bill 1245, which was enacted in 2015 will soon require ALL employers to file and pay electronically. This includes all their employment tax returns, wage reports and payroll tax deposits.

The changes will be introduced in two phases:

  • Beginning January 1, 2017, all employers with 10 or more employees will be required to file and pay electronically.
  • Beginning January 1, 2018, all remaining employers will be required to file and pay electronically.

Employers will be notified by mail about the e-file and e-pay mandate, and a continuing effort will be made to help them comply with it ahead of the deadline. Employers can use the EDD’s e-Services for Business to help them meet the mandate at no cost.

If an employer is unable to comply with the all electronic requirements, an E-file and E-pay Mandate Waiver Request DE1245W is available on the EDD website.

Additional information can be found at EDD E-file and E-pay Mandate.

Per EDD additional updates and improvements to e-Services for Business will be coming soon.

Melinda Nelson CPA