Reporting Employment Taxes

Employer’s Quarterly Federal Tax Return

In general, employers are responsible to report federal Income Taxes, Social Security, and Medicare taxes on Form 941, Employer’s Quarterly Federal Tax Return

Employer’s Annual Federal Unemployment (FUTA) Tax Return

Report FUTA taxes on Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return

Preparing and Filing Form W-2

At the end of the year, the employer must complete Form W-2, Wage and Tax Statement (PDF) to report wages, tips and other compensation paid to an employee. A copy of this form must be given to the employee by January 31st after the end of the year. You must also send a copy of the W-2 to the Social Security Administration (SSA). Employers can prepare and file up to 20 W-2s at a time at the Social Security Administration’s Web site. Using SSA’s online W-2 filing, employers can also print out all the necessary copies of the W-2 for their employees, state taxing agencies, etc.

Quarterly Contribution Return and Report of Wages (DE 9)

Employers are required to file a Quarterly Contribution Return and Report of Wages (DE 9) and the Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C) each quarter.*

The DE 9 reconciles wages reported and taxes paid for each quarter. If your DE 9 shows an overpayment, EDD will send you a refund automatically. If a tax payment is due, it should be submitted with a DE 88/DE 88ALL coupon (mandatory EFT filers must remit all State Disability Insurance/Personal Income Tax deposits by EFT to avoid noncompliance penalty).

Payroll Tax Deposit (DE 88)

All tax payments must be submitted with a completed Payroll Tax Deposit (DE 88/DE 88ALL) unless payments are made by Electronic Funds Transfer (EFT) or credit card using e-Services for Business. Although employer contributions for Unemployment Insurance (UI) and Employment Training Tax (ETT) are due quarterly (same dates as the DE 9 and DE 9C), withholdings from employees’ wages for State Disability Insurance (SDI) and California Personal Income Tax (PIT) may need to be deposited more often. Due dates for combined deposits of SDI and PIT are based on an employer’s federal deposit schedule/requirement (see “Depositing Taxes” in IRS Publication 15) and the amount of accumulated PIT they have withheld. A 10 percent penalty and interest are charged on late payments. Electronic payments must be completed by 3:00 p.m., Pacific Time to settle the next banking day; the postmark date is used to determine the timeliness of tax payments submitted by mail.