The DE 1 EDD form is a Commercial Employer Account Registration and Update Form, which serves multiple purposes. Primarily, it is used by employers in California to register for a new employer account number with the Employment Development Department (EDD). Additionally, it can be used for updating information about an existing employer account, such as reporting a business purchase or sale, reopening a previously closed account, closing an employer account, or updating details like the business address or legal name.
Yes, employers have the option to register online using the EDD's e-Services for Business. This online application is secure and offers a paperless way to register, saving both time and postage. The step-by-step process is designed to be user-friendly and can be accessed at any time at
www.edd.ca.gov/e-Services_for_Business
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The DE 1 form should not be submitted until you have paid wages in excess of $100 to one or more employees in any calendar quarter. This threshold is important for determining when an employer is required to register with the EDD.
The form requires detailed information depending on the action being taken or the update being reported. Generally, it requests data about the employer type, taxpayer type, information about employees, individual owner or corporate officer details, the legal name of the organization, business addresses, the Federal Employer Identification Number (FEIN), and the nature of the business. Additionally, certain actions like reporting a purchase or sale of a business require specific details related to those transactions.
Yes, the form specifies that "employment" does not include service performed by a child under the age of 18 in the employ of his/her parent(s), or service performed by an individual in the employ of his/her son, daughter, or spouse, including the employee's registered domestic partner. This is in compliance with Section 631 of the California Unemployment Insurance Code.
Are there any exclusions to Unemployment Insurance (UI) and State Disability Insurance (SDI) based on the type of employees?
Employers who only employ their spouse, parent(s), or minor child(ren) under 18 are not subject to Unemployment Insurance (UI) and State Disability Insurance (SDI) taxes. However, they may still be subject to Personal Income Tax (PIT) withholding for these employees.
You should only complete the sections of the DE 1 form applicable to your particular business situation, as directed by the instructions on the form. If certain sections or items are not relevant to your business or the specific update you are reporting, they can be left blank.
To update information regarding an officer, partner, or member of your business, you must provide the employer account number at the top of the form and complete the sections specified for adding, changing, or deleting officer/partner/member information. This includes providing the effective date of the update(s).
The completed DE 1 form should be mailed to the EDD at the following address: EDD, Account Services Group, MIC 28, PO Box 826880, Sacramento, CA 94280-0001. Ensure that all required sections are completed and the information provided is accurate to prevent delays in processing.