Online business filing becomes law

Starting next week, California employers with 10 or more employees must electronically file employment tax returns, wage reports, and payroll tax deposits. In 2018, the same rules will apply to all employers.

The new rules are part of AB 1245, which Gov. Brown signed into law in 2015. “Moving these filings online will save our state and businesses millions of dollars without requiring any additional infrastructure,” said the bill’s sponsor, District 8 Assemblyman Ken Cooley, when it was signed. “As the home of the tech industry, California must continue to support innovative ways to make government function more efficiently.”

“Our ‘e-Services for Business’ online system makes it simple for employers to file electronically and manage their accounts at any time and from anywhere using a computer, tablet or even a smart phone – no specialized software needed,” said Patrick W. Henning, Jr., director of the California Employment Development Department (EDD)

“Employers will save time and money while operating in a secure, encrypted environment,” he added. To ease the transition from paper forms and coupon booklets to electronic reporting, EDD is offering employers online tutorials and technical assistance.

Promised benefits of online filing and payment include reducing errors common with paper forms and protecting data through electronic encryption.