New California Employer Filing Requirements

Assembly Bill (AB) 1245 (Chapter 222, Statutes of 2015) requires all employers to electronically file their employment tax returns, reports, and payments to the Employment Development Department (EDD) beginning January 1, 2017*.

AB 1245, authored by Assembly Member Ken Cooley and sponsored by Small Business California, has been phased in over two years to offer employers ample time to prepare. Employers with 10 or more employees were subject January 1, 2017.

Beginning first quarter, effective January 1, 2018, ALL California employers are required to electronically submit employment tax returns, wage reports, and payroll tax deposits to the Employment Development Department.

AB 1245 contains a provision for a hardship waiver for employers who are unable to file returns, reports, and payments electronically.

Enroll now in Payroll Masters Full Tax Service, we take full responsibility to calculate, collect and deposit your payroll taxes accurately and on-time. In fact, we guarantee it! All federal and state taxes are paid electronically using EFTPS (credit) for federal taxes as required by law and the individual state system for each state (or multiple states).

Employers can also enroll in the California EDD e-Services for Business to fulfill these requirements.

*Any employer required under existing law to electronically submit wage reports and/or electronic funds transfer to the EDD prior to January 1, 2017, will remain subject to those requirements.

Source: CA EDD  |  2015 © Copyright Payroll Masters

Revised 10/4/17

Payroll Masters is not a licensed insurance broker or agent and does not provide professional or legal advice. This document has been provided for informational purposes only and is not intended and should not be construed to constitute legal advice. Please contact your employment attorney in connection with any fact-specific situation in which you intend to take significant employment action. Readers agree that they will hold Payroll Masters in indemnity and Payroll Masters assumes no liability. Payroll Masters is not engaged in rendering legal or accounting services. Therefore, Payroll Masters assumes no responsibility for claims arising from the use or implementation of the above information.