How to Register Your New Company with California's Employment Development Department (EDD)

How to Register Your New Company with California's Employment Development Department (EDD)

Introduction: When starting a new business in California, one key step is registering with the California Employment Development Department (EDD). This registration is essential for ERG to file and pay your taxes accurately. This guide provides a step-by-step process to help you navigate the EDD e-Services for Business and ensure your payroll tax obligations are met.

Steps/Procedures:

  1. Enroll as a New User:

    • Visit the EDD e-Services for Business website.
    • Click on 'Enroll' to create a new user account, obtaining a username and password.
  2. Log In to e-Services:

    • Once enrolled, log into your e-Services account.
  3. Applying for an Employer Payroll Tax Account Number:

    • Select 'New Employer' and then 'Register for Employer Payroll Tax Account Number'.
    • Fill out the registration form with details about your business and its operations in California.
  4. Key Tips for Completing the Registration:

    • For the question “First quarter your wages exceeded $100,” you can choose either the prior or current quarter. Remember, ERG will start filing your taxes once you run payroll with California wages. If you choose a prior quarter, you'll be responsible for any interim filings.
    • Under “Taxpayer Representative Contact Information,” do not add ERG as a Taxpayer Representative.
    • When asked “Are you an authorized Payroll Agent?” and “Does this business use professional assistance for payroll reporting?” select 'No'.
    • For “Agency where you want your tax mailings sent,” use your company’s name and address to ensure you receive all communications from the EDD.
  5. Submission and Processing:

    • After completing the registration, submit your request to the EDD.
    • Processing may take up to 3 business days.
    • You can check the status of your registration by logging back into e-Services.
  6. Understanding the New Employer Rate:

    • The new employer rate for unemployment tax in California is currently 3.4%.

Troubleshooting:

  • Registration Delays: If your registration takes longer than expected, you can contact the EDD for assistance.
  • Incorrect Information: Ensure all information entered is accurate to prevent delays or issues with your tax filings.

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