EDD DE 44: California Employer's Guide

Taxpayer Assistance Center 1-888-745-3886 59 DE 44 Rev. 52 (4-26) (INTERNET) Page 67 of 132 Required Forms Payroll Tax Deposit (DE 88) Overview The Payroll Tax Deposit (DE 88) is used to report and pay Unemployment Insurance (UI) tax, Employment Training Tax (ETT), State Disability Insurance (SDI) tax withholding, and Personal Income Tax (PIT) withholding to the Employment Development Department (EDD). Employers can enroll and use e-Services for Business (edd.ca.gov/eServices) to make deposits. Important Due Dates: • If you do not withhold PIT or if accumulated PIT withholdings are less than $350, all payroll taxes (UI, ETT, SDI, and PIT) are due each quarter on January 1, April 1, July 1, and October 1. • If PIT withholdings are $350 or more, SDI and PIT may need to be deposited more often. Refer to page 5 for the California Deposit Requirements table. Withholding Deposits All employers must electronically submit payroll tax deposits to EDD. Although employer contributions of UI and ETT are due quarterly, withholdings from employee wages for SDI and PIT may need to be deposited more often. The SDI and PIT deposit due dates are based on each employer’s federal deposit schedule or requirement and the amount of accumulated PIT the employer has withheld. Details are provided below and in the table on page 62. For information on federal deposit schedules, download the IRS Employer’s Tax Guide (Publication 15, Circular E) at IRS (irs.gov) or contact the IRS at 1-800-829-3676. A penalty of 15 percent plus interest will be charged on late payroll tax payments. California Deposit Requirements Deposit Required Definition Schedule Next-Day You are required to make next-day SDI and PIT deposits if you are required to make federal next-day deposits and you accumulate more than $4001 in California PIT during one or more payroll periods. If you accumulate $350 to $4001 in PIT during one or more pay periods, refer to monthly requirements below. The next-day deposit schedule requires deposits to be made by the next business day. Business days do not include Saturdays, Sundays, or legal holidays. Semi- You are required to make semi-weekly SDI and PIT deposits if you are required to make federal semi- weekly weekly deposits, and you accumulate more than $4001 in California PIT during one or more payroll periods. If you accumulate $350 to $4001 in PIT during one or more pay periods, refer to monthly requirements below. The semi-weekly deposit schedule requires deposits for paydays on Wednesday, Thursday, and Friday to be made by the following Wednesday. For paydays on Saturday, Sunday, Monday, or Tuesday, deposits must be made by the following Friday. Semi-weekly depositors always have three business days after the end of the semi-weekly period to make a deposit. If any of the three business days after the end of the semi-weekly period is a legal