What Form DE 88 (2024) Is For
California employers use Form DE 88 (2024) to submit payroll taxes, including Unemployment Insurance, Employment Training Tax, State Disability Insurance withholding, and California Personal Income Tax. It serves as the required payment method throughout each quarter and is filed electronically using the Employment Development Department’s e-Services for Business. Form DE 88 is separate from quarterly employment tax returns, such as DE 9 and DE 9C, and ensures the timely and accurate deposit of state payroll tax obligations.
When You’d Use Form DE 88 (2024)
You will use Form DE 88 (2024) whenever a payroll tax deposit is required under California’s filing schedule.
Quarterly deposits
This applies when your accumulated California PIT withholding during the quarter totals less than $350 and requires submitting a single deposit by the end of the month following the quarter.
Monthly deposits
This applies when your PIT withholding is between $350 and $500 per month; therefore, you must submit a deposit by the 15th day of the following month.
Semi-weekly deposits
This applies if you follow a federal semi-weekly deposit schedule and your PIT withholding exceeds $500 within a payroll period.
Subsequent banking day deposits
This applies if your federal schedule requires deposits by the next business day after PIT withholding exceeds $500.
Amended deposits
This applies when you must correct a previously submitted payment using the electronic deposit system in e-Services for Business.
Late deposits
This applies when you miss a deadline and must submit the amount due electronically, with the understanding that penalties may be applied.
Key Rules or Details for 2024
Mandatory electronic filing
All employers must submit DE 88 electronically unless the Employment Development Department approves a valid DE 1245W waiver.
Elimination of the SDI wage limit
Senate Bill 951 removed the prior wage cap, allowing State Disability Insurance withholding to apply to all taxable wages.
Penalty structure
Late or incorrect filings may result in a 15 percent penalty plus interest, and submitting a paper form without a waiver may result in an additional 15 percent noncompliance penalty.
Quarterly reconciliation
DE 88 deposits are reviewed against DE 9 filings to confirm that all payroll tax amounts are accurate for the quarter.
Deposit schedule triggers
Deposit frequency is based on California PIT withholding thresholds and the employer’s federal deposit schedule, rather than SDI or UI amounts alone.
Employer responsibility for refunds
Employers must return overwithheld SDI or PIT amounts to employees before seeking reimbursement from the Employment Development Department.
Step-by-Step (High Level)
Step 1: Log in to e-Services for Business
Access your employer account using your eight-digit EDD number, federal employer identification number, and business details.
Step 2: Identify your deposit schedule
Review your federal deposit status and accumulated California PIT withholding to determine whether you must deposit quarterly, monthly, semi-weekly, or by the next banking day.
Step 3: Calculate total tax amounts
Determine the correct amounts for Unemployment Insurance, Employment Training Tax, State Disability Insurance, and California Personal Income Tax based on wages paid and applicable tax rates.
Step 4: Navigate to the DE 88 deposit section
Within e-Services for Business, locate the “Pay and Report Payroll Taxes (DE 88)” section to begin entering deposit information.
Step 5: Input tax and payroll information
Enter the payroll date, quarter, deposit schedule, and the calculated tax amounts for each category, including SDI at the updated 1.1% rate on all wages.
Step 6: Select your payment method
Choose from approved options, including direct debit, ACH credit, or credit/debit card payments through Express Pay.
Step 7: Submit and confirm payment
Submit your payment electronically and save the confirmation, ensuring that the settlement date, not the submission date, meets the deposit deadline.
Step 8: Reconcile at quarter-end
When filing Form DE 9, confirm that your DE 88 deposits align with your reported tax liabilities to avoid discrepancies or penalties.
Common Mistakes and How to Avoid Them
Using the old SDI wage cap
Update your payroll system to remove the outdated $153,164 limit and apply the 1.1% State Disability Insurance rate to all taxable wages paid in 2024.
Confusing submission with settlement date
Initiate electronic payments at least two to three business days before the due date to ensure funds settle on time.
Filing by paper without a waiver
Use e-Services for Business unless you have an approved DE 1245W waiver, as paper submissions without a waiver incur a 15 percent penalty.
Submitting zero payroll returns by paper
Even if no wages were paid, file electronically through e-Services for Business to avoid a $50 noncompliance penalty.
Failing to adjust for SDI cash flow impact
Reevaluate cash flow planning to account for continuous SDI withholding throughout the year with no wage limit.
Notifying employees about SDI changes
Inform employees in advance that SDI will be withheld from all wages for 2024 due to changes under Senate Bill 951.
Misallocating PIT and SDI amounts
Double-check each entry before submitting to avoid transposing or misreporting payroll tax deposit amounts.
What Happens After You File
Once you submit Form DE 88 (2024) electronically, the Employment Development Department processes your payment based on the settlement date and credits your employer account. Payments and balances can be viewed in real time through e-Services for Business. At quarter-end, DE 88 deposits are automatically compared with DE 9 and DE 9C filings. If an underpayment or overpayment is identified, the EDD issues a Statement of Account, and corrections can be submitted using Form DE 9ADJ.
FAQs
What is the penalty for filing a DE 88 payroll tax deposit by paper without approval?
Filing a paper DE 88 without an approved DE 1245W waiver results in a 15 percent noncompliance penalty on the payroll tax deposit amount.
Can Form DE 88 (2024) be used to report workers’ compensation information?
No, workers’ compensation information must be reported separately using the appropriate injury or illness reporting forms.
How does the Division of Workers’ Compensation relate to DE 88?
The Division of Workers’ Compensation handles workplace injury claims and is not related to payroll tax deposits made using Form DE 88.
What if my employee has multiple jobs—does that affect DE 88?
Form DE 88 only reports wages you pay; employees with multiple jobs may have separate reporting obligations unrelated to employer payroll deposits.
Where can employers get help with payroll deposit obligations?
Employers can contact the Taxpayer Assistance Center or consult the DE 44 California Employer’s Guide for guidance on payroll tax deposit requirements.
