E-file and E-pay Mandate FAQs

The E-file and E-pay Mandate for Employers – Assembly Bill (AB) 1245 requires all employers to electronically submit their employment tax returns, wage reports, and payroll tax deposits to us. You can use e-Services for Business to comply with the e-file and e-pay mandate.

Find answers to frequently asked questions about the e-file and e-pay mandate.

What employment tax returns, wage reports, and payments must be electronically submitted under this mandate?

The e-file and e-pay mandate requires you to electronically submit the following returns, reports, and payments:

• DE 9 – Quarterly Contribution Return and Report of Wages
• DE 9C – Quarterly Contribution Return and Report of Wages (Continuation)
• DE 3BHW – Employer of Household Worker(s) Quarterly Report of Wages and Withholdings
• DE 3HW – Employer of Household Worker(s) Annual Payroll Tax Return
• DE 3D – Quarterly Contribution Return
• DE 88 – Payroll Tax Deposit

Am I required to electronically submit for periods before the effective date of this mandate?

No. This law is not retroactive. However, other late filing penalties still apply.

If I have an employer representative or payroll agent who prepares my employment tax returns, wage reports, and payroll tax deposits, are they required to electronically file and pay?

Yes. You should contact your employer representative or payroll agent to make sure they are electronically submitting your employment tax returns, wage reports, and payroll tax deposits to us. Although you have an employer representative or payroll agent, we recommend enrolling in e-Services for Business to monitor your payroll tax account online.

Do you still automatically mail employment tax returns, wage reports, and payroll tax deposit coupons?

No. Employers will only receive employment tax returns, wage reports, and payroll tax deposit coupons by mail if they have an approved E-file and E-pay Mandate Waiver Request (DE 1245W).

Does this mandate apply to out-of-state employers?

Yes. Out-of-state employers who report payroll taxes to us must follow this mandate.

Can I file a waiver request for more than one year at a time?

No. A waiver request will not be approved for a period longer than one year.

Can a waiver request be filed retroactively?

No. An approved waiver is only valid starting with the quarter of your request. It will not be accepted for previous quarters.

How will I know if my waiver request is approved or denied?

You will receive an approval or denial letter from us by mail.

Can I appeal a waiver denial letter?

No. If you receive a denial letter, that is final and cannot be appealed.

Will you notify me that my approved period is about to expire?

No. You will not be notified when your approved waiver has expired. The approval letter you received will show the approval period. Keep this letter for your records. Once the approval period ends, you must start to electronically file and pay, or submit a new waiver request to avoid non-compliance penalties.

e-Services for Business

Use e-Services for Business to manage your employer payroll tax account online.