Welcome to the Employment Development Department

FAQ - Electronic Funds Transfer

How do I enroll in the EFT program?

You must submit a signed EFT Authorization Agreement (DE 26) to EDD. You will be registering for either the ACH Debit or ACH Credit method.

  • ACH Debit - If you register for the ACH Debit method you must submit your completed DE 26 form and a copy of a voided check or completed Bank Specification sheet.
  • ACH Credit - If you register for the ACH Credit method, submit only your completed DE 26 form. No check is required.

FAX your EFT registration to (916) 654-7441 or mail to the address below.

Employment Development Department
Electronic Funds Unit, MIC 15-A P.O. Box 826880
Sacramento, CA 94280-0001

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What are the benefits of using EFT?

EFT eliminates the need for DE 88 coupons and the costs related to check processing. EFT also allows for faster response times to payment inquiries because EFT payments post to your EDD account within four business days following the initiation of your payment. ACH Debit customers can view any payment that was reported through the State’s data collector during the last two years.

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Can EDD debit my account without my knowledge or permission?

No. EFT debits to your bank account are controlled by you or your reporting agent. ACH Debit and Just Pay It option transactions can only be initiated by the employer or their agent representative using a security code and password that was created by the taxpayer or agent. Employers who use the ACH Credit method initiate their payments through their bank and must submit pre-arranged identifying information in order to make a payment.

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Is there a fee to use EFT?

There is no cost to use the ACH Debit Method or the Just Pay It option. If you use the ACH Credit method, banks can charge set-up and per transaction fees for which you are responsible.

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Who is required to pay taxes by EFT?

Employers are required to remit taxes by EFT if State Disability Insurance (SDI) and Personal Income Tax (PIT) deposits averaged $20,000 or more during the prior state fiscal year (July 1 through June 30).

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Am I required to pay taxes by EFT if I only remit one payment a year?

Yes, if that payment was made during the prior State fiscal year and was for $20,000 or more, that payment amount becomes your average and you will be required to remit all SDI/PIT deposits by EFT for the next calendar year. If you are not registered in the EFT Program, you may use the Just Pay It option for your annual tax deposit and it will satisfy the EFT mandatory requirement.

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Is there an electronic payment option for employers who are not registered for EFT?

Yes. The Just Pay It option is available for employers who are not yet registered with the EFT Program. The Just Pay It option is a secure, easy, and convenient payment option that allows you to make electronic DE 88 payments online using your savings or checking bank account at no cost to you. You do not have to be registered in EDD’s EFT Program to use the Just Pay It option and it satisfies the mandatory EFT requirement. Please note that payment history is only available to registered ACH Debit filers and not for Just Pay It transactions.

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If I am a mandatory EFT filer, will I be assessed a penalty for sending in my payment by check?

Yes. If you are required to remit SDI/PIT deposits by EFT and you remit those payments by other means (e.g., check, cash, credit card, etc.), you will be assessed a penalty equal to 10 percent of the amount paid plus interest. Voluntary EFT filers are not subject to the EFT Non-Compliance penalty.

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Can I participate on a voluntary basis?

Yes. A taxpayer who does not meet the mandatory requirement can choose to voluntarily submit EFT payments. For information on how to register for EFT, see Electronic Filing, Registration, & Payment Information.

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Do reporting agents or payroll services need special equipment or software to send their payments?

No, you simply need a computer with Internet access or a telephone. The Metavante® Bulk Filer Solution allows agents to submit multiple employer payments in one file. The application is self-directed and provides grids for the manual entry of payments or for an import/export function. EDD’s data collector, Link2Gov – a Metavante® company, requires agents and payroll services to register for a unique bulk filer ID number and password before sending their first file of payments. For more Bulk Filer information refer to the Electronic Funds Transfer Bulk Filer Setup Guide (EFT-2) or call the EFT Helpline at (916) 654-9130.

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What type of payments can I make by EFT?

You can pay your Payroll Tax Deposit (DE88) payments for SDI/PIT and UI/ETT payments. Self-assessed penalty and interest can also be paid by EFT. You can not use EFT to make payments for billed liabilities such as Employer Account Statement (DE 2176) and/or liens. Liability payments made through the EFT Program may not be applied correctly and may result in additional penalties and interest.

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What payment methods are available to make EFT payments?

ACH Debit

  • Make a Payment Web site - Employers who are registered in EDD’s EFT program can report payments online.
  • The Just Pay It option - Employers who are not registered in EDD’s EFT program can make DE 88 payments online using their savings or checking bank account.
  • Telephone - Employers who are registered in EDD’s EFT program can report payments by telephone using an operator or touch-tone system.
  • Web-based Bulk Filer Solution for Reporting Agents -- Agents or payroll services can submit multiple employer payments in one file. Their clients must be registered in EDD’s EFT program.

ACH Credit

  • Employers report their payments through their bank or a bank program that their bank offers. Credit filers must contact their bank for reporting instructions.

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Will I receive instructions on how to initiate my tax payments?

Yes. Confirmation of your registration with instructions will be provided after EDD receives your EFT Authorization Agreement (DE 26). Additional information on EDD's EFT program can be found in our EFT Information Guide (DE 27).

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How do I ensure a timely tax deposit?

Because EFT tax deposits are not sent through the mail, timeliness is determined by the settlement date (the date funds are credited to the state's bank account). The timely settlement date is considered to be the next banking day following the due date. Payments that settle after the last timely settlement date will be billed for late penalty.
  • ACH Debit Filers and the Just Pay It option users can initiate their payment as late as on the due date as long as the transaction is completed before 3 p.m., Pacific Time and the payment settles the next banking day.
  • ACH Credit Filers need to contact their financial institution for instructions when to report their payment for a timely settlement date. Then initiate the payment accordingly.

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Can I schedule a payment for a future date?

Yes, you can settle an ACH Debit or a Just Pay It option payment on a predetermined settlement date up to 90 days in advance. This is called “Warehouse” or warehousing a payment. If you are an ACH Credit filer, contact your financial institution for warehousing instructions.

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May I pay UI/ETT and SDI/PIT in one payment?

No, you cannot report all four funds in one EFT payment. If you are paying all four funds, initiate one payment for your DI/PIT deposit and a second payment for your UI/ETT.

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May I cancel a payment?

Yes, if you are an ACH Debit filer you can cancel a payment as long as it has not settled. Visit Link2Gov – a Metavante® company or call the State’s data collector at (800) 554-7500 before 3 p.m., Pacific Time on the day before the settlement date. Keep the cancellation reference number for your records. If you are an ACH Credit filer contact your financial institution for cancellation instructions.

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Can I reverse the cancellation of a payment?

No. Once a payment has been cancelled, it is deleted from the system. The payment will need to be re-entered and a new reference number will be generated.

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May I inquire about a previous payment?

Yes. There are two inquiry methods for ACH Debit payments.
  • Web site method - Visit Link2Gov – a Metavante® company, and then click on “Payment Inquiry.” The payment inquiry screen allows you to review payments that were reported through the State’s data collector in the last two years.
  • Telephone method - Call the data collector at (800) 554-7500, then follow the prompts.

    Note: there is no payment history for the Just Pay It option. You will have to print the Payment Acknowledgment screen with the reference number for your records.

ACH Credit filers need to contact their financial institution.

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What do I need to do if my bank account information changes?

If you are remitting EFT payments using the ACH Debit method and your bank account information changes, submit a new EFT Authorization Agreement (DE 26) and a copy of a voided check from the new bank account. If you are remitting payments using the ACH Credit method, you do not need to notify us of the change.

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Am I automatically registered to remit EFT payments to EDD if I am registered with the Board of Equalization (BOE) or the Franchise Tax Board (FTB)?

No, each agency is separate from the others so you must register for EFT with each agency.

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Can I make all my California tax payments (e.g., income tax, sales and use tax, personal income tax, withholding, etc.) to one state agency?

No, the State of California does not have a Department of Revenue; each agency is separate from the others. Make your EFT payments to the appropriate state agency based on the type of taxes you are remitting.

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How do I correct a payment that was transmitted with the wrong payment amount or sent to the wrong state agency?

If an ACH Debit payment has not settled, see Link2Gov – a Metavante® company or contact the State's data collector at (800) 554-7500 and press * to reach an operator, then cancel the payment and report it again correctly.

Credit Filers - need to contact their financial institution for instructions.

If the payment has already settled, call EDD’s EFT Helpline at (916) 6549130.

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What should I do if I have a problem making a payment using the ACH Debit method?

Call the State's data collector at (800) 5547500. Press * to reach an operator. You can also call EDD's EFT Helpline at (916) 6549130 between 8 a.m. and 5 p.m., Pacific Time, Monday through Friday.

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What should I do if I have a problem making a payment using the ACH Credit method?

Contact your financial institution.

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