How to Register with California EDD as a New Employer

Hiring your first employee in California triggers a series of registration and reporting obligations. Before you can legally run payroll, you need to register with the state's Employment Development Department (EDD), which administers California's four payroll taxes: SUI, ETT, SDI, and PIT withholding.

This guide walks you through the entire EDD registration process step by step, from determining when you need to register to understanding your first filing obligations after your account is set up.

When You Must Register

California law requires employers to register with EDD when they meet any of the following conditions:

• You pay $100 or more in wages to one or more employees during a calendar quarter
• You employ one or more workers performing services in California
• You are a household employer paying $750 or more in wages during a calendar quarter
• You are an agricultural employer paying $100 or more in cash wages to one or more workers in a calendar quarter

Once you meet the threshold, you have 15 days to register with EDD. Do not wait until the end of the quarter or until your first payroll tax filing is due — the 15-day clock starts from the date you first pay qualifying wages.

What You Need Before You Start

Gather the following information before beginning the online registration process. Having everything ready will allow you to complete the registration in one session (typically 15–20 minutes):

1. Federal Employer Identification Number (EIN): Your 9-digit number issued by the IRS. If you do not have one, apply at IRS.gov using Form SS-4 (it is free and can be completed online for instant issuance).
2. Business legal name and DBA (doing business as), if applicable.
3. Business entity type: Sole proprietorship, partnership, LLC, S-Corp, C-Corp, etc.
4. Business physical and mailing address in California.
5. Date you first paid or will pay wages to California employees.
6. North American Industry Classification System (NAICS) code: This identifies your type of business. EDD uses it for statistical purposes and to assign your initial SUI rate. You can look up your code at the Census Bureau's NAICS website.
7. Owner/officer information: Name, Social Security number, title, and ownership percentage for each principal owner or corporate officer.
8. Number of employees you expect to have.
9. Payroll frequency: How often you plan to pay employees (weekly, biweekly, semi-monthly, monthly).

How to Register Online

EDD strongly encourages online registration through its e-Services for Business portal. Here is the step-by-step process:

Step 1: Create an e-Services Account

Go to EDD's e-Services for Business website and create a user account. You will need a valid email address and will set up a username and password. EDD will send a verification email to confirm your account.

Step 2: Select "Register for Employer Payroll Tax Account"

Once logged in, select the option to register as a new employer. This starts the Form DE 1 (Commercial Employer) registration process. Different forms apply depending on your employer type:

• DE 1: Commercial employers (most businesses)
• DE 1HW: Household employers
• DE 1AG: Agricultural employers

Step 3: Complete the Registration Form

Enter your business information, including your federal EIN, entity type, business start date, NAICS code, owner/officer details, and expected number of employees. The system guides you through each section.

Step 4: Submit and Receive Confirmation

After submitting, you will receive a confirmation number. EDD typically processes online registrations within 5 to 10 business days. Your Employer Account Number (EAN) and initial tax rate information will be mailed to your business address.

What You Receive After Registration

After EDD processes your registration, you will receive several important items by mail:

• Employer Account Number (EAN): This is your unique 8-digit California employer account number, formatted as XXX-XXXX-X. You will use this number on all filings and correspondence with EDD.
• SUI rate assignment (Form DE 2088): New employers are assigned an initial SUI rate of 3.4% for their first two to three years. This rate will be adjusted annually once you have enough experience history.
• Filing frequency instructions: EDD will tell you whether your payroll tax deposits (for PIT and SDI withholding) are due quarterly, monthly, or semi-weekly, based on the amount you expect to withhold.
• Access to e-Services features: With your EAN, you can now file quarterly returns (DE 9 and DE 9C), make tax payments, view your account, and manage employee information online.

E-File and E-Pay Requirements

California has an electronic filing mandate for most employers:

• Employers with 10 or more employees are required to file returns and pay taxes electronically through e-Services for Business.
• Employers with fewer than 10 employees may file by paper, but electronic filing is strongly encouraged. EDD continues to push all employers toward e-filing.
• All employers who use a payroll service provider or payroll software that supports EDD e-filing should take advantage of electronic filing regardless of size.

Your First Filing Obligations

Once registered, you have several ongoing obligations. Here is what to expect in your first quarter as a California employer:

Quarterly Returns: DE 9 and DE 9C

At the end of each calendar quarter, you must file:

• DE 9 (Quarterly Contribution Return and Report of Wages): The summary return showing total wages paid, total taxes due, and payment information.
• DE 9C (Quarterly Contribution Return — Continuation): The employee-level detail showing each worker's name, SSN, and wages for the quarter.

Quarterly deadlines are the last day of the month following the end of the quarter: April 30, July 31, October 31, and January 31.

Payroll Tax Deposits

Depending on the amount you withhold, you may need to deposit PIT and SDI withholding more frequently than quarterly. EDD assigns your deposit schedule:

• Quarterly depositors: Less than $350 in PIT withheld per quarter
• Monthly depositors: $350 to $500 in PIT withheld per quarter
• Semi-weekly depositors: More than $500 in PIT withheld per quarter

SUI and ETT are always paid quarterly with your DE 9 filing.

New Hire Reporting (DE 34)

California requires employers to report all newly hired and rehired employees within 20 days of their start date. This is done using Form DE 34 (Report of New Employee(s)).

• What to report: Employee's name, address, Social Security number, date of hire, and your employer information.
• How to file: Online through e-Services for Business, by fax, or by mail.
• Why it matters: New hire reporting is used by the state to locate parents who owe child support and to detect fraudulent unemployment insurance claims. Failure to report can result in penalties of $24 per late report, increasing to $490 per employee if the failure is the result of a conspiracy.

Free EDD Payroll Tax Seminars

One of the best-kept secrets for new California employers: EDD offers free payroll tax seminars specifically designed for new employers. These seminars cover:

• Overview of California's four payroll taxes (SUI, ETT, SDI, PIT)
• How to calculate and withhold payroll taxes
• Filing requirements and deadlines
• How to use e-Services for Business
• Common mistakes and how to avoid them
• Q&A with EDD staff

Seminars are offered both in-person at EDD offices throughout California and as online webinars. You can find the schedule and register on the EDD website under "Payroll Tax Seminars." They are typically held monthly and are completely free of charge. If you are a first-time employer, attending one of these seminars is highly recommended.

Common Registration Mistakes to Avoid

• Registering late: Do not wait until the end of the quarter. You have 15 days from the date you first pay qualifying wages. Late registration can trigger penalties and put you behind on your filing schedule.
• Wrong entity type: Make sure you select the correct business entity type during registration. Changing this later requires contacting EDD and can cause processing delays.
• Forgetting to register at all: Some businesses that start with independent contractors and later hire W-2 employees forget that hiring an employee triggers the EDD registration requirement. The moment you hire a W-2 employee, you must register.
• Not setting up e-Services access: Even if you use a payroll provider, create your own e-Services account. You need it to view your SUI rate, check your account status, and respond to EDD notices.
• Confusing EAN with EIN: Your EAN (state employer account number) and EIN (federal employer identification number) are different numbers used for different agencies. Make sure you use the correct one on each filing.

Frequently Asked Questions

How long does EDD registration take?

Online registration through e-Services typically takes 15–20 minutes to complete. EDD processes the application within 5–10 business days, after which your EAN and rate assignment are mailed to you. Paper registration can take 2–4 weeks.

Do I need to register if I only have 1099 contractors?

No. EDD registration is required only when you have W-2 employees. Independent contractors (1099 workers) do not trigger the registration requirement. However, be careful with worker classification — California's ABC test under AB5 is strict, and misclassifying employees as contractors carries severe penalties. See our W-2 vs. 1099 guide for details.

What if I already registered in another state?

State payroll tax registrations are state-specific. If you expand into California or hire a California-based remote employee, you must register with California EDD separately, even if you are already registered in other states.

Can my payroll provider register for me?

Some payroll providers, including Gusto, will handle the EDD registration process on your behalf as part of their onboarding. Check with your provider to see if this is included in their service. Even if they register for you, it is a good idea to set up your own e-Services account for visibility into your employer account.