Article Structure
The DE 1 EDD form, also known as the Commercial Employer Account Registration and Update Form, serves a crucial role for businesses in California. This form allows employers to register for a new employer account number, update existing account information, or report changes in business status. It is essential to complete this form accurately to ensure that the Employment Development Department (EDD) can process it without delays. Before submitting the form, employers must have paid wages exceeding $100 to at least one employee in any calendar quarter. The form includes sections for various updates, such as changes in ownership, business structure, or address. Additionally, it provides options for employers to report the purchase or sale of a business, as well as to close an account if necessary. Employers can also register online through the EDD's e-Services for Business platform, which streamlines the process and reduces paperwork. It is advisable to review the accompanying instructions before filling out the form to avoid missing any required information, as incomplete submissions may not be processed. For further guidance, additional resources are available on the EDD website.
Form Sample
COMMERCIAL EMPLOYER ACCOUNT REGISTRATION AND UPDATE FORM
Did you know you can register online anytime? The Employment Development Department (EDD) e-Services for Business online
application is secure, saves paper, postage, and time. You can access the online application at
www.edd.ca.gov/e-Services_for_Business and follow the easy step-by-step process to complete your registration.
Review the Instructions for Completing the Commercial Employer Account Registration and Update Form (
DE1-I) prior to completing this
form. Do not submit this form until you have paid wages in excess of $100 to one or more employees in any calendar quarter. Additional
information about registering with the EDD is available online at
www.edd.ca.gov/Payroll_Taxes/Am_I_Required_to_Register_as_an_Employer.htm.
Important: This form may not be processed if the required information is missing.
A. I WANT TO
(Select only
one box then
complete the
for that selection.)
Register for a New Employer Account Number (Go to Item B.) Request Account for CalJOBS
SM
(Go to Item B.)
Existing Employer
Account Number:
Update Employer Account Information
Address (O, P) DBA (J) Personal Name Change (G)
Effective Date of Update(s): ____/____/______
Report a Purchase of Business Date of Purchase Purchase Price Entire Business Purchase
(Provide the Seller’s Employer
Account Number at the top of Item A.) ____/____/______ $______________
Partial Business Purchase
Report a Sale of Business Date of Sale Entire Business Sold
(Provide the business’ Employer
Account Number at the top of ____/____/______
Partial Business Sold
Item A. Complete Item P.)
Reopen a Previously Closed Account (Provide the previous Employer Account Number at the top of Item A then go to Item B.)
Close Employer Account Reason for Closing Account Date of Last Payroll
(Provide the Employer Account
No longer have employees
Number at the top of Item A.)
Out of Business ____/____/______
Report a Change in Status: Business Ownership, Entity Type, or Name
Reason for Change:
Change: From To
(Provide the Employer Account Number at the top of Item A, and complete the rest of the form.)
E
ffective Date of Change: ____/____/______
B. EMPLOYER TYPE
(Select type then
proceed to Item C.)
COMMERCIAL PACIFIC MARITIME
C. TAXPAYER TYPE
(Select only
one type then
complete the
for that
selection.)
Individual Owner
(D, E1, F, G, J, K, L, O-T)
Limited Partnership
Joint Venture
Co-Ownership
(D, E2, F, G, J, K, L, O-T)
Association
Receivership
General Partnership
Limited Liability Company (LLC)
Estate Administration
Corporation
Limited Liability Partnership (LLP)
Trusteeship
Other (Specify)
(Complete remaining items as applicable.)
D. FIRST PAYROLL
DATE
(MM/DD/YYYY)
First payroll date wages paid exceeded $100: ____/____/______ (Wages are all compensation for an employee’s
services.) Refer to Information Sheet: Wages (
DE 231A) and Information Sheet: Types of Payments (DE 231TP) at
www.edd.ca.gov/Payroll_Taxes/Forms_and_Publications.htm.
E. EMPLOYEE
INFORMATION
“Employment” does not include service performed by a child under the age of 18 years in the employ of his/her father or
mother, or service performed by an individual in the employ of his/her son, daughter, or spouse, including the employee’s
registered domestic partner. (Section 631 of the
California Unemployment Insurance Code) Refer to Information Sheet:
Family Employment (
DE 231FAM) at www.edd.ca.gov/Payroll_Taxes/Forms_and_Publications.htm.
E1. INDIVIDUAL
OWNER (Only)
Do you only employ your spouse, parent(s), or minor child(ren) (under 18)? If yes, you are not subject to
Unemployment Insurance (UI) and State Disability Insurance (SDI) but may be subject to Personal Income Tax (PIT).
Yes No
(Only)
Do you only employ your minor child(ren) (under 18)? If yes, you are not subject to UI and SDI but may
be subject to PIT.
Yes No
(Consisting of
siblings only.)
Do you only employ your parent(s)? If yes, you are not subject to UI and SDI but may be subject to PIT.
Yes
No
000101151
DE 1 Rev. 79 (3-16) (INTERNET) Page 1 of 2 CU
(Enter Employer Account Number when reporting an Update,
Purchase, Sale, Reopen, Close, or Change in Status.)
– –
000101152
F. LOCATION OF
EMPLOYEE
SERVICES
Do you have employees working in California? Yes
No
Do you have employees residing in California that are working outside of California? Yes No
G. INDIVIDUAL
OWNER/
CO-OWNER
INFORMATION
(If applicable)
NAME TITLE SSN
CA Driver
License
Number
Add Chg. Del.
OFFICER(S),
PARTNERS, OR
LLC MEMBER(S),
MANAGER(S),
AND/OR
OFFICER
INFORMATION
NAME TITLE SSN
CA Driver
License
Number
Add Chg. Del.
I.
J. DOING BUSINESS AS (DBA) (If applicable)
K. FEDERAL EMPLOYER IDENTIFICATION NUMBER (FEIN)
____/____/______
M. STATE OR PROVINCE OF INCORPORATION/ORGANIZATION N. CALIFORNIA SECRETARY OF STATE ENTITY NUMBER
O.
LOCATION
(PO Box or Private
Mail Box will not be
accepted.)
Street Number Street Name Unit Number (If applicable)
City State/Province ZIP Code Country
Business Phone Number
P. MAILING ADDRESS
(PO Box or Private Mail
Box is acceptable.)
Same as above
Street Number Street Name Unit Number (If applicable)
City State/Province ZIP Code Country
Phone Number
Q. E-MAIL
Check to allow
e-mail contact.
Valid E-mail Address
R. INDUSTRY ACTIVITY
Select your business industry
Services Retail Wholesale Manufacturing Temporary Services
Leasing Employer Professional Employer Organization Other (Specify) _____________________
S. CONTACT PERSON
(Complete a Power of
Attorney [POA] Declaration
[
DE 48], if applicable.)
Name Contact Phone Number E-mail Address
Relation Address
T. DECLARATION I certify under penalty of perjury that the above information is true, correct, and complete, and that
these actions are not being taken to receive a more favorable Unemployment Insurance rate. I further
certify that I have the authority to sign on behalf of the above business.
Signature Date
Name Title Phone Number
MAIL TO: EDD, Account Services Group, MIC 28, PO Box 826880, Sacramento, CA 94280-0001
COMMERCIAL EMPLOYER ACCOUNT
REGISTRATION AND UPDATE FORM
DE 1 Rev. 79 (3-16) (INTERNET) Page 2 of 2
Document Specifications
| Fact Name | Fact Description |
|---|---|
| Form Purpose | The DE 1 EDD form is used for registering and updating a commercial employer account in California. |
| Online Registration | Employers can register online anytime through the EDD e-Services for Business application. |
| Wage Requirement | Submission of the form is required only after paying wages exceeding $100 to one or more employees in a calendar quarter. |
| Missing Information | The form may not be processed if any required information is missing. |
| Employer Account Types | Various employer types can be selected, including Individual Owner, Corporation, and Limited Liability Company (LLC). |
| First Payroll Date | The form requires the date when wages first exceeded $100 to be reported. |
| Family Employment Exemption | Employment of certain family members may exempt the employer from Unemployment Insurance (UI) and State Disability Insurance (SDI). |
| California Requirement | Employers must indicate if they have employees working in California or residing in California but working outside the state. |
| Mailing Address | Employers can provide a mailing address that includes a PO Box, which is acceptable for correspondence. |
| Declaration | Employers must certify the accuracy of the information provided under penalty of perjury. |
Steps to Filling Out De 1 Edd
After gathering the necessary information, you can proceed to fill out the DE 1 EDD form. This form is essential for registering or updating your employer account with the Employment Development Department (EDD). Ensure that you have all required details at hand before starting, as missing information may delay processing.
- Begin by indicating your purpose at the top of the form. Choose whether you want to register for a new employer account, request an account for CalJOBSSM, or update existing information.
- Complete the employer type section by selecting the appropriate category, such as commercial or fishing boat.
- Choose your taxpayer type from the options provided, including individual owner, corporation, or partnership.
- Fill in the date of your first payroll, noting when wages exceeded $100.
- Answer the employee information questions, indicating if you only employ family members or if you have employees working in California.
- Provide the names and details of any corporate officers, partners, or members, if applicable.
- Enter the legal name of your organization as it appears on official documents.
- If applicable, include your doing business as (DBA) name.
- Fill in your Federal Employer Identification Number (FEIN) and the date ownership began.
- Provide your physical business location, ensuring to include the street address, city, state, and zip code.
- List your mailing address, which can be a PO Box if needed.
- Include a valid email address and check the box to allow email contact if desired.
- Describe your industry activity in detail, selecting the relevant business category.
- Fill in the contact person's information, including name, phone number, and email address.
- Finally, read the declaration carefully, sign, and date the form to certify that all information is accurate.
Once completed, mail the form to the specified address: EDD, Account Services Group, MIC 28, PO Box 826880, Sacramento, CA 94280-0001.
More About De 1 Edd
What is the DE 1 EDD form used for?
The DE 1 EDD form is the Commercial Employer Account Registration and Update Form. It is used by businesses to register for a new employer account number or to update existing account information with the Employment Development Department (EDD). This form is essential for employers who have paid wages exceeding $100 to employees in any calendar quarter.
Can I register online instead of using the DE 1 form?
Yes, you can register online at any time. The EDD offers an e-Services for Business online application that is secure and efficient. This online process saves paper, postage, and time. You can access the application at www.edd.ca.gov/e-Services_for_Business and follow the step-by-step instructions to complete your registration.
When should I submit the DE 1 form?
You should only submit the DE 1 form after you have paid wages exceeding $100 to one or more employees in any calendar quarter. If you have not met this threshold, you should wait until you have done so before submitting the form.
What happens if I submit the DE 1 form with missing information?
If the DE 1 form is submitted with missing required information, it may not be processed. To ensure your form is accepted, carefully review all sections and provide complete and accurate information before submission.
What types of updates can I request using the DE 1 form?
You can request various updates using the DE 1 form, including changes to your employer account number, business ownership, entity type, or name. You may also report a purchase or sale of a business, reopen a previously closed account, or update officer or partner information.
Is there any specific information I need to provide about my employees?
Yes, you need to provide information about your employees, including whether they work in California or reside in California but work outside the state. Additionally, you must indicate if you only employ your spouse, parent(s), or minor child(ren), as this affects your obligations regarding Unemployment Insurance and State Disability Insurance.
Where should I send the completed DE 1 form?
Once you have completed the DE 1 form, mail it to the following address: EDD, Account Services Group, MIC 28, PO Box 826880, Sacramento, CA 94280-0001. Ensure you have included all necessary information to avoid processing delays.
Common mistakes
Filling out the DE 1 EDD form can be straightforward, but there are common mistakes that people often make. Here are six mistakes to watch out for:
-
Missing Required Information:
People sometimes forget to fill in all the necessary fields. If any required information is missing, the form may not be processed.
-
Incorrect Employer Account Number:
Providing an incorrect or outdated Employer Account Number can lead to delays. Always double-check this number before submitting.
-
Failure to Report Wages:
Some individuals submit the form before they have paid wages exceeding $100 in a calendar quarter. This is a requirement that must be met first.
-
Inaccurate Dates:
Entering incorrect dates for payroll or business transactions can cause confusion. Ensure all dates are accurate and formatted correctly.
-
Not Following Instructions:
Many people overlook the instructions for completing the form. Reviewing the instructions can prevent mistakes and save time.
-
Using PO Boxes for Physical Business Location:
Listing a PO Box instead of a physical address can lead to rejection. The form requires a valid street address for the business location.
By being aware of these common mistakes, individuals can improve their chances of successfully completing the DE 1 EDD form on the first attempt.
Documents used along the form
The DE 1 EDD form is essential for registering a new employer account with the California Employment Development Department (EDD). Along with this form, several other documents are often utilized to facilitate various aspects of employer registration and compliance. Below is a list of these documents, each described briefly to provide clarity on their purposes.
- DE 231A - Information Sheet: Wages: This document provides guidance on what constitutes wages for employees, including definitions and examples. It is particularly useful for understanding payroll obligations.
- DE 231TP - Information Sheet: Types of Payments: This sheet outlines the different types of payments that may be subject to payroll taxes, helping employers determine their tax responsibilities.
- DE 231FAM - Information Sheet: Family Employment: This form clarifies the rules regarding family employment, specifically addressing exemptions for services performed by minors or family members.
- DE 48 - Power of Attorney Declaration: If an individual wishes to authorize someone else to act on their behalf regarding EDD matters, this form must be completed and submitted.
- California Employer Registration Guide: This guide offers a comprehensive overview of the registration process, including necessary steps and common pitfalls to avoid.
- Form 941 - Employer's Quarterly Federal Tax Return: Employers use this federal form to report income taxes, Social Security tax, and Medicare tax withheld from employee paychecks.
- Form DE 9 - Quarterly Contribution Return and Report of Wages: This document is used to report wages paid to employees and the associated payroll taxes owed to the state.
- Form DE 6 - Employer's Annual Payroll Tax Return: This annual return summarizes the total payroll and taxes owed for the year, providing a comprehensive view of an employer's tax obligations.
Each of these documents plays a crucial role in ensuring compliance with state and federal employment regulations. Properly managing these forms can help avoid potential issues and ensure a smooth registration process with the EDD.
Similar forms
The DE 1 EDD form is similar to the IRS Form SS-4, which is used for applying for an Employer Identification Number (EIN). Both forms serve the purpose of registering a business for tax purposes. The DE 1 EDD form is specific to California and focuses on employer accounts, while the SS-4 is a federal form that applies nationwide. Completing either form is essential for businesses that plan to hire employees, as it establishes their tax obligations and identification with the respective authorities.
Another document comparable to the DE 1 EDD form is the California Form DE 9, which is the Quarterly Contribution Return and Report of Wages. This form is used by employers to report wages paid and contributions owed for unemployment insurance. Like the DE 1 EDD, the DE 9 requires detailed information about employees and wages. Both forms are part of the compliance process for businesses operating in California and are necessary for maintaining accurate payroll records.
The California Form DE 34, also known as the Report of New Employee(s), is another document similar to the DE 1 EDD form. This form must be completed when a new employee is hired. It serves to notify the state of new hires for tax and child support purposes. Both forms are crucial for ensuring that employers meet their reporting obligations, thereby helping maintain accurate records for state employment regulations.
Additionally, the IRS Form 941, the Employer's Quarterly Federal Tax Return, is akin to the DE 1 EDD form. This federal form is used to report income taxes, Social Security tax, and Medicare tax withheld from employee paychecks. While the DE 1 EDD focuses on California-specific employer registration, both forms are integral to the overall payroll process and compliance with tax laws.
The California Form DE 3, known as the Annual Report of Wages, is another document that shares similarities with the DE 1 EDD form. This form summarizes the wages paid and taxes withheld over the course of a year. Both forms are necessary for employers to fulfill their reporting requirements to the Employment Development Department and ensure compliance with state regulations regarding employee wages and taxes.
The California Form DE 1870, which is used for reporting independent contractors, also has similarities to the DE 1 EDD form. Both forms require the disclosure of business information and the nature of employment. While the DE 1 EDD is focused on employer registration, the DE 1870 is specifically for independent contractor reporting, emphasizing the different employment relationships that exist within a business.
Lastly, the California Form 1099-MISC, which is used to report payments made to independent contractors, is comparable to the DE 1 EDD form. Both forms require detailed information about the business and the individuals being reported. While the DE 1 EDD is primarily concerned with employer registration and updates, the 1099-MISC focuses on payments made to individuals who are not classified as employees, thus highlighting different aspects of business operations.
Dos and Don'ts
When filling out the DE 1 EDD form, there are several important guidelines to follow to ensure a smooth registration process. Here are four things you should and shouldn't do:
- Do review the instructions carefully before starting the form.
- Don't submit the form unless you have paid wages exceeding $100 to employees in a calendar quarter.
- Do provide accurate and complete information to avoid processing delays.
- Don't use a PO Box for your physical business location; it will not be accepted.
Misconceptions
Understanding the DE 1 EDD form can be challenging, and several misconceptions often arise. Here are nine common misconceptions explained:
- Only new businesses need to fill out the DE 1 EDD form. Many existing businesses must also update their information using this form when there are changes in ownership or business status.
- The form can be submitted anytime. It is essential to submit the form only after paying wages exceeding $100 to any employee in a calendar quarter.
- Online registration is not secure. The EDD e-Services for Business online application is designed to be secure, protecting your information while saving time and resources.
- Filling out the form is complicated. The form comes with step-by-step instructions to guide you through the process, making it manageable for anyone.
- Missing information won't affect the processing. If required information is missing, the form may not be processed, leading to delays.
- Only California residents need to register. Businesses with employees working in California, regardless of their residence, must register with the EDD.
- The DE 1 EDD form is only for employers with many employees. Even businesses with just one employee must complete this form if they meet the wage threshold.
- Once submitted, no further action is needed. Businesses must keep their information up to date, especially if there are changes in ownership or business structure.
- Using a PO Box for the physical business location is acceptable. The EDD requires a physical business address; PO Boxes are not permitted for this purpose.
Key takeaways
Here are key takeaways for filling out and using the DE 1 EDD form:
- The DE 1 EDD form is for registering or updating your commercial employer account.
- You can register online at www.edd.ca.gov/e-Services_for_Business.
- Complete the form only after paying wages exceeding $100 to employees in a calendar quarter.
- Missing information may result in the form not being processed.
- Review the instructions (DE1-I) before completing the form.
- Provide your Employer Account Number at the top of Item A for updates or changes.
- Specify the effective date for any updates or changes you report.
- Be aware that employment does not include certain family members under specific conditions.
- Indicate if you only employ family members, as this affects your liability for Unemployment Insurance and State Disability Insurance.
- Ensure you provide accurate contact information and business details for proper processing.
Filling out the DE 1 EDD form accurately and completely is crucial for compliance and efficient processing. Keep these points in mind as you navigate the registration process.