What Form DE 88 (2019) Is For
California employers use Form DE 88 (2019) to deposit payroll taxes with the Employment Development Department. These deposits cover Unemployment Insurance, Employment Training Tax, State Disability Insurance withholding, and California Personal Income Tax withholding. The form enables the timely payment and reporting of required employment tax obligations to the State of California. Electronic filing became mandatory in 2019, helping the Employment Development Department streamline processing and reduce filing errors.
When You’d Use Form DE 88 (2019)
Employers are required to use Form DE 88 (2019) to submit payroll tax deposits in various situations, depending on the amount withheld and their federal deposit schedule.
Quarterly deposits under $350 PIT withholding
Form DE 88 (2019) must be used quarterly if California Personal Income Tax withholding is less than $350 during the quarter.
Monthly deposits for PIT over $350 but under $500
If PIT withholding is at least $350 but no more than $500 and the employer follows a monthly federal deposit schedule, the deposit is due by the 15th of the month following the month of withholding.
Semi-weekly deposits for PIT over $500
For employers following a semi-weekly federal schedule and accumulating more than $500 in PIT withholding, California requires deposits on either the following Wednesday or Friday, depending on the payroll day.
Next-day deposits for significant tax events
If an employer accumulates $100,000 or more in federal employment taxes and more than $500 in PIT on any single day, Form DE 88 (2019) must be used to make a next-day deposit.
Late or amended payments
The form is also used to correct underpayments or overpayments before filing the DE 9 return for the quarter.
Key Rules or Details for 2019
Mandatory electronic filing
As of January 1, 2019, all employers were required to file Form DE 88 electronically through e-Services for Business unless a valid waiver (Form DE 1245W) was approved.
15 percent penalty for paper filers
Employers submitting paper DE 88 forms without an approved waiver were subject to a 15 percent penalty on the full deposit amount, regardless of whether any tax was due.
Correct quarter designation
The quarter identified on Form DE 88 must correspond to the quarter when wages were paid, not the deposit date. Errors in this field often trigger reconciliation issues.
Use of EDD employer account number
Each DE 88 submission must include the eight-digit Employment Development Department employer account number to ensure proper tracking of funds.
Deposit frequency tracked by system
The employer’s deposit frequency is automatically monitored and adjusted by the state system based on accumulated PIT withholding amounts for each period.
Step-by-Step (High Level)
Step 1: Calculate payroll tax amounts
Employers must determine the correct amounts for Unemployment Insurance, Employment Training Tax, State Disability Insurance withholding, and Personal Income Tax withholding based on current employee wages and applicable wage limits.
Step 2: Log in to e-Services for Business
Employers access the Employment Development Department’s online portal and navigate to the Payroll Tax Deposit (DE 88) section.
Step 3: Enter deposit information accurately
After selecting the appropriate calendar quarter and payroll date, employers input the correct dollar amounts for each tax category. The system calculates the total deposit automatically.
Step 4: Authorize and submit payment
Employers confirm banking information for the direct debit transaction, review payment authorization details, and submit the deposit electronically.
Step 5: Save confirmation receipt
After submission, the system generates a confirmation screen with a transaction number and settlement date, which must be saved as proof of timely filing.
Common Mistakes and How to Avoid Them
Confusing federal and state deposit schedules
Employers should consult California-specific Personal Income Tax withholding thresholds rather than relying solely on federal deposit rules.
Submitting paper forms without a waiver
Employers must file electronically unless they have an approved Form DE 1245W waiver to avoid the automatic 15 percent penalty.
Depositing for the wrong quarter
The quarter selected on Form DE 88 must reflect when wages were paid, not when the deposit is submitted.
Transposing or misentering figures
All entries should be reviewed carefully, as even minor discrepancies can cause reconciliation issues.
Overlooking SDI and PIT wage limits
State Disability Insurance has a wage cap, while Personal Income Tax does not. Misapplying these limits can lead to incorrect deposits.
Failing to save confirmation
The electronic confirmation provides critical proof of compliance and should always be retained.
What Happens After You File
After filing Form DE 88 (2019) electronically, employers receive a confirmation with a unique transaction number and settlement date. The Employment Development Department debits the specified amount from the employer’s bank account on the settlement date.
Deposits are reconciled with the DE 9 report filed at quarter-end. Overpayments may be applied as credits on Line J of the DE 9, while underpayments result in balances due and potential penalties. Patterns of noncompliance may trigger audits, including reviews related to worker classification under the ABC test.
FAQs
Do I need to file Form DE 88 (2019) if no wages were paid during the period?
No. Form DE 88 (2019) is only required when payroll wages and employment tax liabilities exist.
Can Form DE 88 be used for independent contractors reported on Form 1099-MISC?
No. Form DE 88 (2019) applies only to employee payroll taxes and does not cover independent contractor payments.
Does household income affect how Form DE 88 is filed?
No. Household income is unrelated to Form DE 88, which applies solely to employer payroll tax deposits.
Can joint employment issues arise during audits related to DE 88 filings?
Yes. If joint employment is suspected, the Employment Development Department may review worker classifications under the ABC test during an audit.
