Fill Out Your De 24 Form

What is the DE 24 form?

The DE 24 form is used to update account information with the Employment Development Department (EDD) for businesses in California. This may include changes related to business address, ownership, or other details that affect the employer's account. It ensures that the EDD has accurate information for tax purposes and communication.

Who needs to fill out the DE 24 form?

Any employer who has experienced changes in their business information should fill out the DE 24 form. This includes sole proprietorships, corporations, limited liability companies (LLCs), and partnerships. If there are modifications to information such as the business name, ownership, or address, it is essential to submit this form to keep the records up to date.

How do I submit the DE 24 form?

The completed DE 24 form must be mailed to the EDD Account Services Group at the specified address: P.O. Box 826880, Sacramento, CA 94280-0001. Ensure that all necessary changes and details are filled out accurately before mailing the form to avoid delays in processing.

What types of changes can be reported on the DE 24 form?

Several changes can be reported using the DE 24 form. These include address changes, changes to the business name (Doing Business As or DBA), changes in ownership, and alterations in partner or officer information. Additional relevant changes might include ceasing wage payments, discontinuation of the business, and providing details if a Professional Employer Organization (PEO) is being utilized.

What information is required when reporting a change of ownership?

When reporting a change of ownership, you will need to provide specifics such as the previous and new owner's names, the type of change (partial sale, complete sale, or corporation formation), and any new Federal Employer Identification Number (FEIN) if applicable. This section is crucial for ensuring the EDD records reflect the current ownership accurately.

Can I report more than one change on the DE 24 form?

Yes, the DE 24 form allows for multiple changes to be reported simultaneously. As long as the applicable sections are filled out correctly, you can report changes such as address, business name, and ownership on a single form. Just be sure to provide all necessary details for each change to ensure clarity and completeness.

What happens if my business is out of business?

If your business is out of business, you need to indicate this by checking the appropriate box on the DE 24 form. You will also need to provide the date your business ceased operations and a forwarding address if one is available. This informs the EDD to update your account status accordingly.

Do I need to provide a signature when submitting the DE 24 form?

Yes, the DE 24 form requires a signature from an authorized representative of the business, such as an owner or officer. Also, if an agent submits the form on behalf of the business, a power of attorney document must be attached or already on file with EDD. This ensures that the person signing has the legal authority to make changes to the business account.

How can I manage my payroll tax account online?

To manage your payroll tax account online, you can enroll in e-Services for Business. This platform allows you to file reports, make deposits, update addresses, and perform various other tasks at your convenience. Visit https://eddservices.edd.ca.gov to get started.

Filling out the DE 24 form can significantly impact your business's payroll tax account, so it is essential to avoid common mistakes. One frequent error occurs when individuals fail to complete the EDD Account Number section. Neglecting to provide this number can delay processing and lead to confusion in identifying the correct account. Each EDD account has a unique identifier that ensures accurate updates, so always double-check to make sure this information is included.

Another mistake often made involves incorrect or incomplete address changes. When entering a new address, ensure all components such as the street number, city, state, and ZIP code are accurate. Omitting any part or using the wrong format can jeopardize communication with the Employment Development Department (EDD). This might result in missed notifications or forms, which could further complicate your business’s tax situation.

Individuals may also overlook the section regarding changes in ownership or corporate structure. If you indicate a change, you must fill out the corresponding sections completely. Failing to do so may lead to miscommunication regarding tax obligations. For instance, if the ownership has changed but the details regarding the new owner are not provided, it can create issues with the tax records. It is important to be thorough in reporting these changes to reflect the current status of the business accurately.

Lastly, many forget to sign the form or provide the necessary contact information after completing it. A signature is required to certify the accuracy of the information reported. Leaving the signature section blank or failing to provide a phone number can result in significant delays. Ensure that you also include your title, as this identifies who has the authority to make changes on behalf of the business. Without proper identification, the form may be returned or deemed invalid.

The DE 24 form is a crucial document for businesses in California that need to update their employer account information with the Employment Development Department. However, several other forms and documents frequently accompany the DE 24 form to ensure compliance with state regulations. Below is a list of these associated forms, along with a brief description of each.

• Form DE 9: This is the quarterly contribution return and report of wages. Employers must file it to report wages paid and contributions owed for unemployment insurance.
• Form DE 964: This form is the employer’s report of contribution rate. It outlines the tax rate the employer must apply to calculate unemployment insurance contributions.
• Form DE 2088: This is the application for a tax rate assignment. When businesses need to request a different unemployment tax rate based on changes in ownership or other significant alterations, this form is used.
• Form DE 542: Known as the report of independent contractor(s), this form is submitted to report information about contractors who may be subject to unemployment insurance taxes.
• Form 941: This is the employer’s quarterly federal tax return. It reports income taxes, Social Security tax, and Medicare tax withheld from employees' paychecks.
• Form W-2: This form is used to report annual wages paid to employees and taxes withheld. Employers must provide this to employees for tax-reporting purposes.
• Form SS-4: This is an application for an Employer Identification Number (EIN). Businesses need this number for tax purposes and to establish their identity with the IRS.
• Form EDD 1000: This is the application for a business account number. Frequently required for new businesses, it sets up a record with the EDD for tax reporting.
• Form RRF-1: The report of charitable organizations that wish to solicit donations. Nonprofit organizations will need this form to comply with state regulations.

Having the right forms ready when updating your business information is essential. Completing the DE 24 form alongside these other documents provides a complete picture of your business's employment status and compliance with California laws. Always check for the latest requirements to stay informed.

• Form DE 7: Used for reporting changes to employees and specific payroll operations. Similar to the DE 24 in that both forms request updates regarding business information, though DE 7 focuses specifically on employee-related changes.
• Form DE 9: This form is for wage reports and is filed quarterly. Like the DE 24, it collects essential business information but does so in the context of wage reporting rather than ownership or address changes.
• Form DE 10: This form is used to report new employees. The DE 10 requests information about business changes in the context of employee filings, similar to how DE 24 tracks updates relevant to business ownership.
• IRS Form SS-4: Used for applying for an Employer Identification Number (EIN). This form overlaps with the DE 24 in scenarios where corporations change their ownership or structure, potentially affecting their tax identification.
• Form SS-8: This is used to determine worker status for purposes of federal employment taxes. It has parallels with DE 24 regarding ownership, helping clarify how changes in control may impact employee classification.
• Form 941: This is a quarterly tax return filed by employers. Like the DE 24, it requires accurate business information and changes in operations or ownership can impact its contents.
• California Form 5500: This form is related to employee benefit plans. Both DE 24 and Form 5500 involve changes to business operations but serve different regulatory purposes, with 5500 focused on employee benefits.

When filling out the DE 24 form, it is essential to approach the task with care. This form is used for reporting changes in employer account information to the Employment Development Department. Here are seven guidelines to follow:

• Do provide accurate and complete information. Missing or incorrect details can lead to processing delays.
• Don't use abbreviations or shorthand. Use clear and complete names for all entities involved.
• Do double-check the dates you enter. Ensure all changes have the correct date to avoid confusion.
• Don't leave any sections blank. If a section does not apply, indicate that with “N/A”.
• Do attach any necessary additional sheets if you need more space to provide information.
• Don't forget to sign the form. An unsigned form will be considered incomplete and may be returned.
• Do maintain a copy of the submitted form for your records. Documentation is essential for future reference.

• Misconception 1: The DE 24 form is only for large businesses.

This is not accurate. The DE 24 form applies to all business entities, regardless of size. Sole proprietors and small businesses must also keep their employer account information updated to remain in compliance.

• Misconception 2: Only changes in ownership require a DE 24 filing.

While changes in ownership do necessitate filing the form, other modifications also require attention. Changes to addresses, business names, and officer information must be reported to the Employment Development Department (EDD) using this form.

• Misconception 3: I can submit the DE 24 form by email.

Submitting the DE 24 form via email is not permitted. The EDD requires that the form be mailed to the specified address, ensuring that all changes are recorded in a physical and verifiable manner.

• Misconception 4: It doesn’t matter when I file the DE 24 form.

Timeliness is crucial. Delayed submission of the DE 24 can lead to complications or penalties. Prompt filing ensures your business maintains compliance and prevents any disruption in services.

• Misconception 5: The DE 24 form can be signed by anyone.

This is misleading. Only individuals with the authority to act on behalf of the business—such as owners or authorized agents—can sign the form. It is essential to have proper authorization to avoid legal issues.

• Misconception 6: I only need to file the DE 24 form if my business is changing locations.

Changes in location are just one reason to file the DE 24. Any alteration to the business’s structure, name, or ownership also requires a filing. Failing to do so can result in incorrect records with the EDD.

• Misconception 7: Once I submit the DE 24 form, I do not need to do anything else.

This is not entirely true. After submitting the form, businesses must continue to monitor and maintain accurate records with the EDD. Changes in information or operations may necessitate additional filings, ensuring the business remains compliant.

Here are key takeaways regarding the use of the DE 24 form for changing employer account information.

• Correct Address Information: If there is a change in business address, fill in the relevant details in the specified box to update records accurately.
• Business Name Changes: Any change to the business name or DBA must be clearly indicated along with the date of change.
• Ownership Changes: If the business changes ownership, check the appropriate box. Provide necessary details about the previous and new ownership in the subsequent sections.
• New Tax Identifications: When applying for a new Federal Employer Identification Number (FEIN), explain the reason clearly on the form.
• PEO Information: If using a Professional Employer Organization, include their details to ensure a smooth payroll process.
• Date Tracking: Document the effective date of any changes. Ensure all dates are formatted correctly.
• Certification Requirement: A signed certification confirms the provided information is accurate. The signature must pertain to an authorized individual.
• Submission Process: Mail the completed form to the specified address at the Employment Development Department for processing.

Understanding these key aspects will help ensure that your changes are processed without unnecessary delays or issues.