What Form DE 88 (2024) Is For
The Payroll Tax Deposit (DE 88) is how California employers pay Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability Insurance (SDI) withholding, and California Personal Income Tax (PIT) withholding to the Employment Development Department (EDD). The quarterly return (DE 9) and wage report (DE 9C) are filed separately.
How DE 88 Deposits Are Made
State law requires all employers to submit payroll tax deposits electronically, and all employers have been subject to this requirement since January 1, 2018. EDD no longer offers the DE 88 on paper. Employers make DE 88 deposits in e-Services for Business under "Pay and Report Payroll Taxes (DE 88)." Only employers with an approved E-file and E-pay Mandate Waiver (DE 1245W) may mail a DE 88 coupon, and an approved waiver is valid for one year.
When Deposits Are Due
UI and ETT are due quarterly. SDI and PIT withholdings may have to be deposited more often (quarterly, monthly, semi-weekly, or next-day) depending on your federal deposit schedule and how much California PIT you have accumulated. EDD can adjust the PIT deposit threshold, so use the California Deposit Requirements table in the California Employer's Guide (DE 44) for the year you are paying. Electronic deposits are timely only if they settle in the state's bank account by the due date.
Penalties
EDD charges a penalty of 15 percent plus interest on late payroll tax payments. Making a payment by a non-electronic method without an approved waiver carries a separate noncompliance penalty of 15 percent of the amount due.
After You Pay
At quarter-end, your DE 88 deposits are reconciled with your DE 9. If a payment is late or short, EDD sends a Statement of Account (DE 2176).
Sources: EDD e-Services for Business; EDD Forms and Publications; EDD E-file and E-pay Mandate for Employers; California Employer's Guide (DE 44), Rev. 52 (4-26).