More Hoops: EDD Wants Employers to Report AB 1513 Safe Harbor Payments For All Past Quarters

Employers who paid safe harbor payments under AB 1513 are facing a new vexing, last minute challenge.  Although the payments were taxable wages to employees and former employees for the tax year 2016, the California Employment Development Department (“EDD”) recently issued a notice that employers who made these payments must report the back payments for the quarters for which they were made.  The EDD is expecting employers to not only submit a DE 9 (Quarterly Contribution Return and Report of Wages) and pay the contributions for the 2016 quarter that the back pay was made, but also submit a DE 9c for the quarters in which the employees earned the back pay and should have been paid (back to July 2012).  To add insult to injury the forms cannot be electronically filed.  Employers must mail the forms to a specific address.  The EDD’s notice is attached here.

For more information on this and other AB 1513 issues contact Jennifer Douglas Phillips.