What Form DE 88 (2018) Is For
Form DE 88 (2018) is the payroll tax deposit form that California employers must use to submit required payments for Unemployment Insurance, Employment Training Tax, State Disability Insurance withholding, and California Personal Income Tax withholding. It serves as the payment mechanism for these taxes and is separate from quarterly employment tax returns, such as Forms DE-9 and DE-9C.
Beginning in 2018, employers are required to submit DE 88 electronically under the e-file and e-pay mandate using e-Services for Business or another approved electronic method.
When You’d Use Form DE 88 (2018)
You would use Form DE 88 (2018) during active payroll periods or whenever adjustments to prior deposits are needed.
Regular deposits
Employers submit scheduled deposits for payroll taxes, including UI, ETT, SDI, and PIT, in accordance with the established California deposit schedule.
Late deposits
Employers submit DE 88 electronically as soon as possible if a required deposit is missed to minimize penalties and interest.
Corrected deposits
Employers use DE 88 to correct underpayments or misallocated amounts and ensure proper reporting before filing quarterly returns.
Amended returns
Employers reconcile previous DE 88 errors using Forms DE 9 and DE 9ADJ when quarterly reporting identifies discrepancies.
Account closures
Employers submit a final DE 88 when business operations end, followed by a final DE 9 and DE 9C for proper account closure.
Zero-payroll periods
Employers must still submit DE 88 electronically when no wages or compensation were paid to remain compliant with the filing rules.
Key Rules or Details for 2018
Several rule changes took effect in 2018 that significantly impacted how employers use Form DE 88.
Mandatory electronic submission
All employers, regardless of size or payroll frequency, must submit payroll deposits electronically using e-Services for Business or an approved alternative method.
Deposit schedules
Employers must determine their deposit frequency based on their federal deposit schedule and the amount of California Personal Income Tax withheld during the deposit period.
Late deposit penalty
Beginning in 2018, late payroll tax payments incur a 15 percent penalty, up from 10 percent in prior years, along with daily interest.
Waiver eligibility
Employers who are unable to file electronically due to hardship or a lack of technology may request a one-year waiver by using Form DE 1245W.
SDI and PIT overwithholding
Employers must first refund any excess withholding to the individual employee before requesting reimbursement from the Employment Development Department.
No-paper-filing exception
Paper returns are no longer accepted, even if no wages were paid; all DE 88 submissions must be electronic unless a waiver is approved.
Automatic reconciliation
Misallocated amounts between UI, ETT, SDI, and PIT are automatically corrected when employers file the quarterly DE 9 return.
Step-by-Step (High Level)
Step 1: Register for e-Services for Business
Employers must create an online account using their EDD account number, FEIN, and business contact information.
Step 2: Determine your deposit frequency
Employers must identify their federal deposit schedule and review their California PIT withholding to determine their DE 88 deposit frequency.
Step 3: Calculate amounts due
Employers must accurately compute their UI, ETT, SDI, and PIT liabilities for the payroll period based on employee wages and applicable tax rates.
Step 4: Log in and access DE 88
Employers must log in to e-Services for Business and navigate to the section for payroll tax payments using Form DE 88.
Step 5: Enter deposit information
Employers must enter payroll dates, calendar quarter, deposit schedule, and the specific amounts for each applicable payroll tax.
Step 6: Submit payment electronically
Employers may pay via direct debit, ACH credit, or credit/debit card using Express Pay, taking into account processing times and fees.
Step 7: Save confirmation
Employers should save the confirmation page, including the transaction ID and settlement date, as part of their payroll records.
Step 8: Reconcile at quarter-end
Employers must file DE 9 and DE 9C electronically, which reconcile all DE 88 payments against the total quarterly tax liability.
Common Mistakes and How to Avoid Them
Using paper coupons
Submit all DE 88 payments electronically through e-Services for Business or another approved method, unless a valid waiver is in place.
Confusing settlement dates and submission dates
Initiate electronic payments at least two to three business days before the deadline to ensure funds settle on time.
Underpaying penalties
Always calculate late penalties using the current 15 percent rate to avoid underpayment issues.
Filing zero-payroll returns by paper
Even if no wages were paid, submit the return electronically or formally close the account.
Misallocating deposits between tax types
Double-check payroll calculations and input fields before submission to ensure each tax type is reported correctly.
Not applying for a waiver when eligible
If electronic filing is not possible, submit Form DE 1245W ahead of the deadline.
Assuming electronic filing prevents all errors
Always verify amounts manually before submission, as the system does not validate tax calculations.
What Happens After You File
Once Form DE 88 (2018) is filed electronically, the Employment Development Department processes the payment based on the settlement date. The payment is credited to the employer account and appears in the e-Services for Business dashboard.
At quarter-end, DE 88 deposits are reconciled against DE 9 and DE 9C filings. If discrepancies exist, the EDD may issue a Statement of Account or initiate enforcement actions for underpayment, late filing, or noncompliance.
FAQs
Can paper coupons still be used for DE 88 payments?
No. As of 2018, paper coupons are no longer accepted unless the employer has an approved e-file and e-pay mandate waiver.
What happens if a deposit deadline is missed?
A 15 percent late payment penalty plus interest is assessed from the due date through the settlement date.
Can DE 88 be filed using a credit card?
Yes. Employers may pay by credit or debit card using Express Pay, though a convenience fee applies.
How is a deposit schedule changed?
Deposit frequency must be updated immediately if federal deposit requirements change or PIT withholding crosses new thresholds.
Does electronic filing prevent all penalties?
No. Penalties may still apply for incorrect amounts, missed deadlines, or failed payments, even when filed electronically.
