Anyone practices in California?

[NotEasy]

Anyone from California here? I have a question about the state payroll tax requirement.

The instruction says:"Monthly: You are required to make California Monthly SDI and PIT deposits if you are required to make federal Monthly or Quarterly deposits AND you accumulate $350 or more in PIT during one or more months of a quarter."

I take this to mean that you are not a monthly depositor if your accumulated PIT is still under $350 after the 2nd month of each quarter. Am I correct?

For example, suppose the PIT of a company is the same at $150 every month. In each quarter, The accumulated PIT after the 1st month is $150. After the 2nd month, the accumulated PIT is $300 which is still under the limit. So the company can wait until the 15th of the following month after the 3rd month to pay the PIT of the whole quarter at the same time. Therefore, the company is a quarterly depositor.

Have I interpreted what they said in the instruction correctly?

[dsi]

I prepare several CA payrolls, but can't answer your question at this time...not in my office. However, with all of my payrolls, I have my clients send in the taxes with each and every payroll, regardless of how little or how much they owe. This is the only way I know of to prevent them from getting any penalties, and they are very happy to pay as they go.

[DTS]

NotEasy

All of the payroll accts I do are a lot smaller per month, so this is not an issue for me. I always have reported quarterly. Contact EDD and see if they can tell you. Some others in CA do payroll and they will jump in soon. Hang in there. In the meantime, check this out:

http://www.edd.ca.gov/About_EDD/Contact_edd.htm

D

[dsi]

From: http://www.edd.ca.gov/Payroll_Taxes/...TaxDepositDE88


Payroll Tax Deposit (DE 88)

All tax payments must be submitted with a completed Payroll Tax Deposit (DE 88/DE 88ALL) unless payments are made by electronic funds transfer (EFT) or credit card using EDD's e-Services-Services. Although employer contributions for Unemployment Insurance (UI) and Employment Training Tax (ETT) are due quarterly (same dates as the Quarterly Wage and Withholding Report (DE 6)), withholdings from employees' wages for State Disability Insurance (SDI) and California Personal Income Tax (PIT) may need to be deposited more often. Due dates for combined deposits of SDI and PIT are based on an employer's federal deposit schedule/requirement (see "Depositing Taxes" in IRS Publication 15) and the amount of accumulated PIT they have withheld. A 10 percent penalty and interest are charged on late payments. The postmark date is used to determine the timeliness of tax payments submitted by mail.

Mail all tax payments with Payroll Tax Deposit (DE 88/DE 88ALL) coupons to:

Employment Development Department
P.O. Box 826276
Sacramento, CA 94230-6276

Please include your employer account number on your check or money order.

The deposit requirements are:

* Next Banking Day: You are required to make California Next Banking Day SDI and PIT deposits if you are required to make federal Next Banking Day deposits AND you accumulate more than $400* in PIT during one or more payroll periods. (If you accumulate $350-$400 in PIT during one or more pay periods, see Monthly requirements below.)

The Next Banking Day deposit schedule requires deposits to be made by the next banking (business) day. Banking days do not include Saturdays, Sundays, or legal holidays (http://www.edd.ca.gov/taxrep/taxhol.htm). Once you make a Next Banking Day deposit, you automatically become a Semiweekly depositor for the remainder of that calendar year and all of the following calendar year.
EFT transactions for Next Banking Day deposits must settle into the State's bank account on or before the third business day following the payroll date.
* Semiweekly: You are required to make California Semiweekly SDI and PIT deposits if you are required to make federal Semiweekly deposits AND you accumulate more than $400 in PIT during one or more payroll periods. (If you accumulate $350-$400 in PIT during one or more pay periods, see Monthly requirements below.) The Semiweekly deposit schedule requires that if payday is Wednesday, Thursday, or Friday, then deposit is due by the following Wednesday, and if payday is Saturday, Sunday, Monday, or Tuesday, then deposit is due by the following Friday.

Semiweekly depositors always have three business days after the end of the Semiweekly period to make a deposit. If any of the three weekdays after the end of a Semiweekly period is a legal holiday, you will have one additional business day to make your deposit.
EFT transactions for Semiweekly deposits must settle into the State's bank account on or before the next business day following the due date.
* Monthly: You are required to make California Monthly SDI and PIT deposits if you are required to make federal Monthly or Quarterly deposits AND you accumulate $350 or more in PIT during one or more months of a quarter.

Monthly deposits are due by the 15th of the following month.

You will be required to make Monthly SDI and PIT deposits if you are required to make federal Next Banking Day or Semiweekly deposits and you accumulate $350-$400 in PIT during one or more months of a quarter.
EFT transactions for Monthly deposits must settle into the State's bank account on or before the next business day following the due date.
* Quarterly: Quarterly tax payments are due and delinquent on the same dates as the Quarterly Wage and Withholding Report (DE 6). (See Monthly deposit requirements if you are a Quarterly depositor but accumulate $350 or more in PIT during one or more months of a quarter.) Although UI and ETT are due quarterly, you may submit them with any SDI and PIT deposit.

EFT transactions for Quarterly payments must settle into the State's bank account on or before the next business day following the last timely date for the quarter.

[NotEasy]

From: http://www.edd.ca.gov/Payroll_Taxes/...TaxDepositDE88

* Monthly: You are required to make California Monthly SDI and PIT deposits if you are required to make federal Monthly or Quarterly deposits AND you accumulate $350 or more in PIT during one or more months of a quarter.

Monthly deposits are due by the 15th of the following month. .

Thank you dsi.

I have read this instruction before too. I asked the question because I wanted to make sure I interpret what they said there correctly.

The instruction says:"Monthly: You are required to make California Monthly SDI and PIT deposits if you are required to make federal Monthly or Quarterly deposits AND you accumulate $350 or more in PIT during one or more months of a quarter."

I take this to mean that you are not a monthly depositor if your accumulated PIT is still under $350 after the 2nd month of each quarter. Am I correct?

For example, suppose the PIT of a company is the same at $150 every month. In each quarter, The accumulated PIT after the 1st month is $150. After the 2nd month, the accumulated PIT is $300 which is still under the limit. So the company can wait until the 15th of the following month after the 3rd month to pay the PIT of the whole quarter at the same time. Therefore, the company is a quarterly depositor.

What's your opinion? Thanks.