California Form DE 1, the Commercial Employer Account Registration and Update Form, is the document every for-profit business in California uses to register with the California Employment Development Department (EDD) and open a state employer payroll tax account. You file it the moment you pay more than $100 in wages to one or more employees in a calendar quarter, and the account number EDD issues becomes the spine of every payroll tax filing you ever submit in California.
According to the EDD’s most recent payroll tax statistics, more than 1.1 million active California employer accounts file payroll taxes each quarter, and EDD reports that nearly 1 in 5 paper DE 1 forms come back with errors that delay account activation by 10 to 20 business days. This guide walks you through the current DE 1 (Rev. 43, 1-23) line by line so your registration clears the first time.
- 📋 What every box, line, and signature block on the DE 1 actually asks and how to answer it
- 🧾 Three full filled-out examples (sole proprietor, LLC, and out-of-state corporation) with real numbers
- ⏰ The 15-day registration deadline, the $100-wage trigger, and the penalties for missing them
- 🌐 How to file by paper and through e-Services for Business, with fees, processing times, and proof of filing
- 🚫 The 10 most common DE 1 mistakes that trigger rejections, holds, and penalty notices
What the Form Is and Who Must File It
The DE 1 is the Commercial Employer Account Registration and Update Form used to open a California employer payroll tax account, also called a State Employer Account Number (SEIN). The form is authorized under California Unemployment Insurance Code section 1086, which requires every employing unit in California to register with EDD. Once approved, EDD issues an 8-digit SEIN that links you to four state payroll taxes: Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability Insurance (SDI), and California Personal Income Tax (PIT) withholding, all explained in the DE 44 Employer’s Guide.
You must file the DE 1 if you operate a commercial (for-profit) business in California and you have paid, or expect to pay, more than $100 in wages to one or more employees in a calendar quarter. The trigger is set in CUIC section 982, and the 15-day clock starts the day you cross the $100 threshold. Sole proprietors, partnerships, LLCs, LLPs, corporations, and joint ventures all use the same DE 1 form, while nonprofits use DE 1NP, agricultural employers use DE 1AG, household employers use DE 1HW, public schools use DE 1SNP, Indian tribes use DE 1GS, and Pacific Maritime employers use DE 1P.
A single-member LLC that hires its first part-time employee, a two-partner restaurant that brings on a dishwasher, and a Delaware corporation that opens a San Diego sales office all use the same DE 1. If you are a sole proprietor with zero employees and you only pay yourself draws, you do not file a DE 1 because owner draws are not wages. The moment you hire anyone other than yourself, the obligation switches on.
Before You Start: Documents and Information You Need
Gather every piece of information before you open the form, because EDD will reject incomplete filings and a missing federal number alone can stall your account for two to three weeks. The EDD registration instructions lay out the full list, but the practical checklist looks like this.
- Federal Employer Identification Number (FEIN). Get this first from the IRS EIN application because EDD cross-checks every DE 1 against IRS records, and a missing or wrong FEIN is the single most common cause of rejection.
- California Secretary of State entity number. LLCs, LPs, LLPs, and corporations must have already registered with the California Secretary of State and have a 7- or 12-digit SOS file number on hand.
- Owner, partner, member, or officer details. Full legal name, home address, Social Security Number, date of birth, driver’s license, and phone number for each person with at least 10% ownership or signing authority.
- Business legal name and DBA. Match the legal name to your IRS CP 575 letter exactly, and have your fictitious business name (FBN) statement ready if you operate under a DBA.
- Physical California business address. Not a P.O. Box for the primary address, because EDD must have a physical location for audit and service of process.
- Mailing address. Where EDD should send paper notices, statements, and the DE 9/DE 9C return packets each quarter.
- Date wages first paid (or will be paid). This is the single most consequential date on the form because it sets your liability start date and your first DE 9 due date.
- Estimated quarterly payroll. A reasonable estimate of California wages for the next four quarters, which EDD uses to set your initial UI reserve account profile.
- Six-digit NAICS code. Look it up at census.gov/naics, because the wrong industry code can place you in the wrong UI rate group.
- Bank routing and account numbers. Required for e-pay enrollment, which is mandatory for almost all employers.
Where to Get the Form and How to Access It
You have three official ways to obtain the DE 1. The fastest is the direct PDF link to the current DE 1 (Rev. 43, 1-23) on the EDD forms portal, which opens a fillable PDF you can complete on screen, print, and mail. The second is the EDD Forms and Publications page, which lists every DE-series form including the variant forms for nonprofits, household employers, and agricultural operations.
The third and strongly recommended path is to skip the paper DE 1 entirely and register online through e-Services for Business, EDD’s free electronic portal. Online registration uses the same data fields as the paper DE 1 but issues your SEIN in as little as 30 minutes, compared to 10 to 14 business days for a mailed paper form. EDD now requires almost all employers to file returns and deposits electronically under AB 1245, so you will end up using e-Services anyway, and registering online avoids re-keying everything later.
You can also request a paper form by calling the EDD Taxpayer Assistance Center at 1-888-745-3886, by visiting any EDD Employment Tax Office, or by writing to EDD, Account Services Group MIC 28, P.O. Box 826880, Sacramento, CA 94280-0001. Always confirm you have the latest revision, because EDD rejects superseded versions outright and the revision date prints in the lower-left corner of page 1.
Step-by-Step: How to Fill Out the DE 1 Line by Line
The DE 1 is two pages long and divided into Sections A through P, plus a signature block. Use blue or black ink, print in BLOCK CAPITAL LETTERS, and never use correction fluid because EDD scans every form and white-out triggers a manual review hold.
Section A: Reason for Submitting This Form
This box asks why you are sending in the DE 1, and it controls everything EDD does with the form. Check exactly one of the boxes: Original registration, Purchase of business, Change in ownership/legal entity, or Reopen account. Most first-time filers check Original registration.
For example, Maria Lopez opens a new bakery and checks Original registration because she has never had an EDD account before. The nuance: if you bought an existing California business with employees, you must check Purchase of business and complete Section O, because EDD may transfer the seller’s UI reserve account (and rate) to you under CUIC section 1051. The most common mistake here is checking Original registration after buying a business, which forfeits a potentially favorable UI rate and can cost thousands per year. The misconception: many filers think any new SEIN is an “original” registration, but EDD treats successor employers very differently, and the wrong box is hard to undo.
Section B: Federal Employer Identification Number (FEIN)
Section B asks for the 9-digit FEIN the IRS issued to your business. Enter it as XX-XXXXXXX with a hyphen after the second digit, exactly as it prints on your IRS CP 575 confirmation letter.
For example, Carlos Nguyen’s LLC has FEIN 87-1234567, and that is what he writes in Section B. The nuance: if you applied for an EIN online and have not yet received the CP 575, you can write the EIN you received on screen, but you must keep the confirmation letter for later EDD verification. The most common mistake is using the owner’s personal Social Security Number in this box, which causes EDD to reject the registration and forces a do-over. The misconception: filers often think a single-member LLC can use the owner’s SSN here because the IRS treats it as a disregarded entity, but California still requires a separate FEIN for payroll tax purposes.
Section C: Business Name (Legal Name)
This box asks for the exact legal name of the business as it appears on IRS records. Enter it in BLOCK CAPITAL LETTERS, including any INC, LLC, LP, or CORP suffix.
For example, Maria Lopez enters LOPEZ ARTISAN BAKERY LLC because that is the name on her California Articles of Organization and her IRS CP 575. The nuance: if you operate under a DBA or fictitious business name, that name does not go in Section C; it goes in Section D. The most common mistake is entering the DBA in Section C, which creates a permanent name mismatch between EDD and the IRS and triggers backup withholding notices. The misconception: business owners often think the name on their bank account is the legal name, but the bank may have shortened it, and only the IRS-recorded name controls.
Section D: Doing Business As (DBA) / Trade Name
Section D asks for any fictitious business name under which you operate. If you have no DBA, leave this box blank.
For example, Carlos Nguyen runs NGUYEN VENTURES LLC but operates the public-facing business as PHO 99, so he enters PHO 99 in Section D. The nuance: California requires you to record DBAs at the county level under Business and Professions Code section 17910, and EDD may ask for the FBN statement during account verification. The common mistake is leaving Section D blank when you actually use a DBA on signs, invoices, or paychecks, which causes notices addressed to the legal name to confuse staff and go unanswered. The misconception: many filers think the DBA replaces the legal name, but EDD treats the legal name as the legally responsible party at all times.
Section E: Business Mailing Address
Section E captures where EDD should mail correspondence, returns, and notices. A P.O. Box is allowed here.
For example, Maria Lopez uses her accountant’s address, 4500 ELM ST STE 200, SAN DIEGO, CA 92101. The nuance: if you change mailing addresses later, you must file a new DE 1 with Section A marked as an update, or use e-Services for Business to change it online. The most common mistake is using a personal home address that the owner later moves out of without updating EDD, which causes missed notices and default penalties. The misconception: filers think email is enough, but EDD’s official service of process is by mail to the address on file.
Section F: Physical Business Address
Section F is the actual California location where work happens, and a P.O. Box is not allowed. Enter the street, suite, city, county, and ZIP.
For example, PHO 99 operates at 125 MAIN ST, FRESNO, CA 93701, FRESNO COUNTY. The nuance: if you have multiple California locations, enter the headquarters or primary location in Section F and list the others on a separate sheet labeled DE 1 Attachment – Additional Locations. The most common mistake is listing an out-of-state headquarters here, which makes EDD think you have no California nexus and can delay your account. The misconception: home-based businesses sometimes leave this blank, but a residence used for business is a valid physical location.
Section G: Business Telephone, Fax, and Email
This section asks for a daytime phone number, an optional fax, and a business email. Enter the phone as (XXX) XXX-XXXX.
For example, Maria Lopez enters (619) 555-0142 and maria@lopezbakery.com. The nuance: the email you list here becomes EDD’s primary electronic contact and is used to send e-Services activation links, so use a monitored business inbox. The most common mistake is using a personal Gmail that the owner stops checking, which causes the e-Services activation code to expire and the account to stay locked. The misconception: filers think EDD will call before mailing penalties, but EDD often communicates only in writing.
Section H: Type of Organization
Section H is a checkbox grid: Sole Proprietor, Partnership, LLC, LLP, Corporation, LP, Joint Venture, Receivership, Estate, Trust, or Other. Check exactly one.
For example, Carlos Nguyen checks LLC because Nguyen Ventures LLC is a California limited liability company. The nuance: if you check LLC, you must also indicate on the same line whether the LLC is taxed as a sole proprietor, partnership, S-corp, or C-corp for federal purposes, because EDD uses this to validate the FEIN. The most common mistake is checking Corporation for an LLC that elected S-corp tax treatment, which conflicts with the Secretary of State record. The misconception: filers think federal tax classification overrides state legal form, but California cares about the legal entity registered with the SOS.
Section I: Date Organized in California / Date Qualified to Do Business
This box asks when your entity was formed in California or, for out-of-state entities, when you registered to do business with the California Secretary of State. Use MM/DD/YYYY format.
For example, Lopez Artisan Bakery LLC was formed on 03/14/2026, and that is the date Maria enters. The nuance: a sole proprietor who never files with the SOS uses the date the sole proprietorship started doing business, typically the same day the FBN statement was filed. The most common mistake is using the date the bank account was opened, which is rarely the legal formation date and can put your liability period in the wrong quarter. The misconception: many filers think the date of incorporation in another state controls, but California cares about the date you became authorized in California.
Section J: Date Wages First Paid in California
This is the single most consequential field on the DE 1. Enter the date you paid (or expect to pay) more than $100 in wages to a California employee in a calendar quarter.
For example, Maria Lopez hires her first baker on 04/01/2026 and writes her first paycheck on 04/15/2026 for $1,200, so she enters 04/15/2026. The nuance: if you have not yet paid wages but expect to within 90 days, enter the expected first-payroll date, and EDD will activate the account effective that date. The most common mistake is backdating this field by a month or two to “match” the formation date, which creates a phantom liability period and triggers DE 9 non-filer notices. The misconception: filers think the date of hiring is the trigger, but the trigger is the date of paying more than $100 in wages.
Section K: Industry Activity and NAICS Code
Section K wants a brief description of what the business does and the 6-digit NAICS code. Look it up at census.gov/naics.
For example, Pho 99 enters Vietnamese full-service restaurant and NAICS 722511. The nuance: a business with multiple activities should pick the NAICS code that represents the largest share of revenue, not the most prestigious one. The most common mistake is guessing a code or copying a competitor’s, which can land you in the wrong UI industry rate group and inflate your initial reserve account. The misconception: filers think NAICS is informational only, but it directly influences UI experience-rating peer groups and audit selection.
Section L: Number of Employees and Estimated Quarterly Wages
This section asks how many employees you have today and your best estimate of California wages for the next four quarters. Round to whole dollars.
For example, Carlos Nguyen enters 7 employees and estimated quarterly wages of $95,000. The nuance: a good-faith estimate is fine, and EDD does not penalize you for being off, but a wildly low number can flag the account for review. The most common mistake is entering zero because “we just started,” which contradicts Section J’s wage date and confuses EDD’s auditors. The misconception: filers think this estimate locks them into a tax amount, but UI, ETT, SDI, and PIT are all calculated on actual quarterly wages reported on the DE 9 and DE 9C.
Section M: Owner, Partner, Member, Officer, or Responsible Party Information
Section M is the personal-liability section. List every owner, general partner, LLC member, corporate officer, or responsible party who can sign tax documents. For each person, enter full legal name, title, home address, SSN, DOB, driver’s license number, and phone.
For example, Maria Lopez lists herself as Managing Member, with home address, SSN XXX-XX-1234, and DOB 07/22/1985. The nuance: corporations must list the president, treasurer, and secretary at minimum under CUIC section 1735, which makes those officers personally liable for unpaid trust-fund taxes. The most common mistake is listing only one owner when there are several, which exposes that one person to disproportionate personal collection actions. The misconception: filers think LLC members are shielded from personal liability for payroll taxes the same way they are from contract debts, but CUIC 1735 pierces that veil for trust-fund amounts.
Section N: Previous EDD Account Number (If Any)
This box asks whether you have ever held an EDD employer account before. If yes, enter the prior 8-digit SEIN.
For example, Carlos Nguyen once ran a different LLC that closed in 2022 with SEIN 123-4567-8, so he enters that number. The nuance: a closed account in good standing can sometimes be reopened instead of registering a new one, which preserves UI rate history. The most common mistake is leaving this blank when you previously had any account, which can later be flagged as an attempt at SUTA dumping under CUIC section 982.5. The misconception: filers think a closed account is irrelevant, but EDD cross-references owners and FEINs across decades.
Section O: Purchase of Business Information
Complete this section only if Section A indicates Purchase of business. Enter the seller’s legal name, SEIN, FEIN, purchase date, and what you bought (assets, stock, or both).
For example, Pho 99 bought Saigon Express LLC on 02/01/2026, SEIN 987-6543-2, asset purchase. The nuance: a successor employer can request a transfer of the seller’s UI reserve account under CUIC section 1051, which can lock in a lower UI rate. The most common mistake is leaving this section blank because the buyer thinks they are “starting fresh,” forfeiting a valuable rate-transfer opportunity. The misconception: buyers often think they automatically inherit the seller’s account number, but they do not — they must actively request the transfer.
Section P: Industry-Specific Questions
Section P asks specialty questions: do you employ agricultural workers, do you have a written voluntary plan for SDI, are you a household employer, do you employ minors, etc. Check yes or no for each.
For example, Lopez Artisan Bakery checks No for everything because she is a straightforward retail food business. The nuance: a Yes on the voluntary SDI plan question routes your file to a specialty unit that reviews the plan under CUIC section 3251. The most common mistake is checking Yes for agricultural when you only have a community garden, which puts you on the DE 1AG track and delays the commercial registration. The misconception: filers think these questions are throwaway, but each Yes changes which EDD unit handles the account.
Signature Block: Declaration Under Penalty of Perjury
The signature block is at the bottom of page 2. The signer must be an owner, partner, LLC member-manager, corporate officer, or someone holding a valid EDD power of attorney via DE 48.
For example, Maria Lopez signs as Managing Member, prints her name, dates the form 04/20/2026, and writes her phone number. The nuance: digital signatures on the fillable PDF are accepted only if you submit through e-Services; mailed paper forms must be wet-signed. The most common mistake is having the bookkeeper sign without a DE 48 on file, which voids the registration. The misconception: filers think a typed name is a signature on paper, but EDD treats unsigned paper forms as not filed, and your 15-day clock keeps running.
Three Filled-Out Examples Using Real Scenarios
Each scenario follows one named filer through the most important DE 1 fields.
Scenario 1: Maria Lopez — Sole Proprietor Hiring Her First Employee
| Form Section | What Maria Enters |
|---|---|
| Section A — Reason | Original registration |
| Section B — FEIN | 87-2233445 |
| Section C — Legal Name | MARIA LOPEZ |
| Section D — DBA | LOPEZ ARTISAN BAKERY |
| Section H — Type | Sole Proprietor |
| Section I — Date Organized | 01/15/2026 |
| Section J — Wages First Paid | 04/15/2026 |
| Section K — NAICS | 311811 — Retail Bakery |
| Section L — Employees / Wages | 1 employee / $14,000 quarterly |
| Section M — Owner | Maria Lopez, Sole Owner, SSN on file |
| Signature | Maria Lopez, Owner, 04/20/2026 |
Scenario 2: Carlos Nguyen — Multi-Member LLC Restaurant
| Form Section | What Carlos Enters |
|---|---|
| Section A — Reason | Original registration |
| Section B — FEIN | 87-1234567 |
| Section C — Legal Name | NGUYEN VENTURES LLC |
| Section D — DBA | PHO 99 |
| Section H — Type | LLC taxed as Partnership |
| Section I — Date Qualified | 01/02/2026 |
| Section J — Wages First Paid | 01/15/2026 |
| Section K — NAICS | 722511 — Full-Service Restaurant |
| Section L — Employees / Wages | 7 employees / $95,000 quarterly |
| Section M — Members | Carlos Nguyen, Managing Member; Linh Tran, Member |
| Section N — Previous SEIN | 123-4567-8 (closed 2022) |
| Signature | Carlos Nguyen, Managing Member, 01/20/2026 |
Scenario 3: Janet Pierce — Out-of-State Corporation Expanding Into California
| Form Section | What Janet Enters |
|---|---|
| Section A — Reason | Original registration |
| Section B — FEIN | 45-9988776 |
| Section C — Legal Name | PIERCE ANALYTICS INC |
| Section D — DBA | (blank) |
| Section H — Type | Corporation (Delaware, qualified in CA) |
| Section I — Date Qualified | 03/01/2026 |
| Section J — Wages First Paid | 03/16/2026 |
| Section K — NAICS | 541511 — Custom Computer Programming |
| Section L — Employees / Wages | 3 CA employees / $72,000 quarterly |
| Section M — Officers | Janet Pierce, CEO; Mark Hsu, CFO; Dana Reed, Secretary |
| Section P — Voluntary SDI Plan | No |
| Signature | Janet Pierce, CEO, 03/20/2026 |
How to File the Completed DE 1
You have four filing channels, and each has its own fee, processing time, and proof of filing.
- Online via e-Services for Business. The fastest channel, with no fee, payment by ACH for any later balances, and a SEIN typically issued in 30 minutes to 1 business day. Save the on-screen confirmation number and the PDF acknowledgment as proof of filing.
- By mail to Employment Development Department, Account Services Group MIC 28, P.O. Box 826880, Sacramento, CA 94280-0001. There is no filing fee, processing takes 10 to 14 business days, and your proof of filing is the USPS Certified Mail green card (always send Certified).
- In person at any EDD Employment Tax Office, with no fee, same-day stamp-in receipt, and account activation in 5 to 10 business days. Bring two copies so one can be date-stamped and returned to you.
- By fax to 1-916-654-9211 for time-sensitive registrations, no fee, processing in 7 to 10 business days, with the fax confirmation page serving as proof of filing.
EDD does not accept email submission of the DE 1 because of the Social Security Numbers in Section M, and the EDD secure messaging system is reserved for existing account holders. Always keep a complete photocopy or PDF of the signed form for at least 4 years under CUIC section 1085, which sets the records-retention requirement for employer payroll documents.
What Happens After You File
Within the processing window for your channel, EDD issues an 8-digit State Employer Account Number (SEIN) in the format XXX-XXXX-X, mailed on a DE 1 Confirmation Notice and also delivered electronically if you registered online. This SEIN becomes the identifier for every future return, deposit, and notice, and you must include it on the DE 9 quarterly contribution return, the DE 9C wage detail, and every DE 88 deposit coupon.
EDD also assigns your initial UI rate, typically the new-employer rate of 3.4% on the first $7,000 of wages per employee for the first two to three calendar years, plus 0.1% ETT and 1.1% SDI for 2026, all detailed in the DE 44 Employer’s Guide. After three full years, you transition to an experience-rated UI tax that ranges from 1.5% to 6.2% depending on your reserve account balance and benefit charges.
You are then immediately responsible for filing the DE 9 and DE 9C every quarter, depositing PIT and SDI on a schedule tied to your federal deposit frequency, and reporting every new hire on the DE 34 Report of New Employee(s) within 20 days. Missing the first DE 9 due date triggers an automatic non-filer penalty under CUIC section 1112, so calendar the dates the same day the SEIN arrives.
Mistakes to Avoid When Filling Out the DE 1
- Using the owner’s SSN instead of the FEIN in Section B. This causes outright rejection and a 2- to 3-week restart.
- Listing the DBA in Section C. The legal name and IRS records permanently mismatch, leading to backup withholding notices.
- Backdating Section J (wages first paid). Creates a phantom quarter and DE 9 non-filer penalties of $50 per return plus $20 per employee.
- Putting a P.O. Box in Section F (physical address). EDD treats this as no California nexus and pauses the file.
- Checking Original registration after buying a business. Forfeits the seller’s UI rate transfer, which can cost thousands per year.
- Guessing the NAICS code. Wrong industry rate group means your reserve account profile is mispriced from day one.
- Leaving Section M owners off the form. Limits EDD’s collection options and can trigger an audit when discovered.
- Forgetting to sign in wet ink on the paper version. Unsigned paper forms are treated as not filed; the 15-day clock keeps running.
- Using correction fluid or pencil. Triggers a manual review hold and adds 7 to 10 business days.
- Missing the 15-day registration deadline. Brings a penalty of up to $100 per offense under CUIC section 1112.5 and starts interest on any unpaid contributions.
Do’s and Don’ts
- Do register through e-Services for Business whenever possible, because online registration is faster and self-validates many fields.
- Do match the legal name in Section C exactly to the IRS CP 575, since EDD cross-checks the IRS database before issuing the SEIN.
- Do keep a signed copy of the DE 1 for at least 4 years, because CUIC section 1085 requires the records.
- Do list every responsible officer in Section M, because spreading liability protects each individual from disproportionate collection actions.
- Do verify your NAICS code at census.gov/naics, since the wrong code can inflate your initial UI peer-group profile.
- Do send paper forms by Certified Mail, because the green card is your only proof if EDD says it never arrived.
- Don’t use a personal Gmail in Section G, because EDD activation links go there and missed emails cause locked accounts.
- Don’t leave Section N blank if you ever held a prior EDD account, because EDD will discover it and flag SUTA dumping concerns.
- Don’t hand the signature block to a bookkeeper without a DE 48 power of attorney on file, because unauthorized signatures void the registration.
- Don’t estimate Section L wages at zero, because that contradicts Section J and confuses EDD auditors.
- Don’t skip Section O when you bought a business, because that is how you preserve the seller’s UI reserve account.
- Don’t rely on EDD to call you about errors, because most communication is by mail to the Section E address.
Pros and Cons of Filing on Your Own vs. With Help
- Pro of filing solo: No professional fees, which matters for a startup watching every dollar.
- Pro of filing solo: You learn the EDD system, which pays off when you file every DE 9 and DE 9C later.
- Pro of filing solo: Online e-Services makes solo registration genuinely fast.
- Pro of filing solo: You control the timing, especially when the 15-day clock is tight.
- Pro of filing solo: You see exactly what was filed, with no broken-telephone risk.
- Con of filing solo: Successor-employer Section O traps are easy to miss without payroll experience.
- Con of filing solo: UI rate transfer requests under CUIC section 1051 require strategic judgment.
- Con of filing solo: Voluntary SDI plan questions in Section P can route the file to the wrong unit.
- Con of filing solo: First-time filers often misread Section J and create phantom liability.
- Con of filing solo: No professional shield if EDD later questions the registration.
DE 1 vs. DE 1NP at a Glance
| Feature | DE 1 vs. DE 1NP |
|---|---|
| Who files | DE 1: for-profit commercial employers / DE 1NP: 501(c)(3) nonprofits |
| Wage trigger | DE 1: $100/quarter / DE 1NP: $100/quarter, with reimbursable election option |
| UI funding option | DE 1: contribution method only / DE 1NP: contribution or reimbursable under CUIC 803 |
| Form link | DE 1 PDF / DE 1NP PDF |
| Required attachment | DE 1: none / DE 1NP: IRS 501(c)(3) determination letter |
FAQs
Do I have to register if I only have one part-time employee?
Yes. If you pay any employee more than $100 in a calendar quarter, you must register within 15 days using the DE 1, regardless of part-time, full-time, or seasonal status.
Can I use my Social Security Number instead of an FEIN on the DE 1?
No. California requires every commercial employer to have a federal EIN before registering, even single-member LLCs and sole proprietors with employees.
Is the DE 1 the same as the DE 4?
No. The DE 1 registers your business with EDD, while the DE 4 is the employee’s California withholding allowance certificate, similar to the federal W-4.
Do I write my home address or business address in Section F?
No P.O. Box is allowed in Section F; enter the physical California work location, even if it is your home address, because EDD requires a physical site for nexus.
What if I have not paid any wages yet?
Yes, you can still register early, especially if you expect to pay wages within 90 days; enter the expected first-payroll date in Section J.
Do I need to register if all my employees are independent contractors?
No, but California’s AB 5 ABC test reclassifies many contractors as employees, so review each worker before assuming you are exempt.
Can my CPA sign the DE 1 for me?
Yes, but only if a DE 48 Power of Attorney is on file with EDD; otherwise the signature is invalid and the form is treated as unfiled.
Do I list my LLC’s federal tax classification in Section H?
Yes. Check the LLC box and indicate the federal tax classification (sole proprietor, partnership, S-corp, or C-corp) on the same line so EDD can validate against IRS records.
Is there a filing fee for the DE 1?
No. Registration is free through every channel — online, mail, fax, and in person.
Can I correct a mistake after I file?
Yes. Submit a new DE 1 with Section A marked as an update, or correct the field through your e-Services for Business account.
Do I need to register again if I move my business to a new California city?
No new registration is needed for an in-state move; just update the address through e-Services or by filing an updated DE 1 with Section A marked accordingly.
What happens if I miss the 15-day registration deadline?
Yes, there are penalties: up to $100 per offense under CUIC section 1112.5, plus interest on any unpaid contributions from the first wage date.
Do household employers use the DE 1?
No. Household employers paying $750 or more in a quarter file the DE 1HW instead, which has different UI and SDI elections.
Can I register for federal and state at the same time?
No, the IRS issues the FEIN first, and California requires that FEIN on the DE 1 — so plan for the IRS step before the EDD step.
Related reading
- How to Fill Out California Form DE-34 (w/Examples) + FAQs
- How to Fill Out California Form DE-9 (w/Examples) + FAQs
- How to Fill Out California Form DE-1AG (w/Examples) + FAQs
- How to Fill Out California Form DE-1HW (w/Examples) + FAQs
- How to Fill Out California Form DE-88 (w/Examples) + FAQs
- How to Fill Out California Form DE-805 (w/Examples) + FAQs