What Form DE 9 Rev. 1 (2020) Is For
Form DE 9 Rev. 1 (2020) is California’s quarterly employment tax return used by employers to report total wages paid and reconcile payroll tax deposits with amounts owed to the Employment Development Department. This form serves as a quarterly employer wage report, summarizing Unemployment Insurance, Employment Training Tax, State Disability Insurance, and Personal Income Tax withheld. Employers use it to confirm that payroll deposits align with actual wage and tax liability for the quarter.
When You’d Use Form DE 9 Rev. 1 (2020)
This return is required in several routine payroll and compliance situations during the year.
- Quarterly payroll reporting: Employers must file Form DE 9 Rev. 1 (2020) at the end of each calendar quarter to satisfy California’s payroll reporting requirement.
- Quarters with no payroll activity: Employers are still required to file the form even when no wages are paid during the quarter.
- Late original filings: Employers use this form when submitting an original return after the quarterly due date.
- Final reporting for closed accounts: Employers file the form when completing final payroll reporting before formally closing or inactivating an employer payroll tax account.
Key Rules or Details for 2020
Several filing rules govern the completion and submission of this employment tax return.
- Electronic filing requirement: California requires employers to submit Form DE 9 Rev. 1 (2020) electronically through e-Services for Business, unless the Employment Development Department has approved a filing waiver.
- Taxes reported on the form: The return reports Unemployment Insurance, Employment Training Tax, State Disability Insurance withheld from employee wages, and Personal Income Tax withheld from employee wages.
- Annual wage limits: Unemployment Insurance and Employment Training Tax apply only to the first $7,000 of wages paid to each employee per calendar year. In contrast, State Disability Insurance and Personal Income Tax apply to all wages without a cap.
- Quarterly due dates: The form is due after the end of each calendar quarter, and penalties and interest apply when filing or payment occurs after the due date.
Step-by-Step (High Level)
The filing process follows a consistent sequence once the calendar quarter has ended.
- Gather payroll records: Employers compile total wages paid, taxable wages, and payroll tax withholdings for the quarter using payroll and accounting records.
- Access e-Services for Business: Employers log in to the Employment Development Department e-Services for Business portal using their assigned employer payroll tax account number.
- Complete the quarterly return: Employers enter summary wage totals, taxes due, and payroll tax deposits already submitted for the quarter.
- Submit the wage detail report: Employers file the companion wage detail report listing employee-level wage and withholding information for the same quarter.
- Pay any remaining balance: Employers submit payment electronically if the return shows a balance due to prevent additional penalties and interest.
Common Mistakes and How to Avoid Them
Many compliance issues result from preventable reporting and filing errors.
- Failing to file during zero-wage quarters: Employers avoid penalties by filing the return even when no wages were paid during the reporting period.
- Submitting paper returns without approval: Employers prevent automatic penalties by filing electronically unless the Employment Development Department has granted a written waiver.
- Reporting mismatched wage totals: Employers should verify that wage totals match exactly between the quarterly return and the employee wage detail report.
- Using incorrect wage plan codes: Employers reduce processing delays by assigning the correct wage plan code to each employee based on their tax status.
- Delaying corrections after filing: Employers limit penalties and interest by correcting errors promptly through the proper adjustment process.
What Happens After You File
After submission, the Employment Development Department reviews the return for accuracy and consistency before posting it to the employer’s payroll tax account. If deposits exceed the tax liability, the department issues a refund or credit depending on the amount. If a balance remains due, additional penalties and interest accrue until payment is made. Reported wages are credited to employee records for future benefit eligibility, and the filing may affect the employer’s Unemployment Insurance reserve balance and future tax rate.
FAQs
Do employers have to file Form DE 9 Rev. 1 (2020) if no wages were paid?
Yes, employers must still file this quarterly employer wage report even when no wages were paid to remain compliant with California payroll filing rules.
Is Form DE 9 Rev. 1 (2020) required to be filed electronically?
Yes, this employment tax return must be filed electronically through e-Services for Business unless the Employment Development Department has granted an approved waiver.
How is Form DE 9 Rev. 1 (2020) different from the employee wage detail report?
Form DE 9 Rev. 1 (2020) summarizes total wages and taxes for the quarter, while the companion wage detail report lists individual employee wage and withholding information.
What happens if an employer files this return late?
Late filing may result in penalties, interest, and additional assessments tied to the payroll reporting requirement enforced by the Employment Development Department.
Can errors on a previously filed return be corrected?
Yes, employers may correct errors by submitting the appropriate adjustment through e-Services for Business after the original return has been filed.
