How to Fill Out California Form DE-1378IT (w/Examples) + FAQs

California Form DE-1378IT is the Surety Bond — Employment Tax agreement that an employer files with the California Employment Development Department (EDD) to post a surety bond in lieu of cash when protesting or appealing a payroll tax assessment under California Unemployment Insurance Code §1731. The bond keeps EDD’s collection machinery frozen while the employer fights the assessment before the California Unemployment Insurance Appeals Board (CUIAB).

Filing this form wrong — wrong penal sum, missing notarization, surety not licensed in California — turns a paused assessment into an active collection case, which means bank levies, liens, and accrued interest at the rate set by CUIC §1113. According to EDD’s most recent Tax Branch Annual Report, more than 18,000 employer assessments are issued each year, and roughly 1 in 4 protested assessments involves a bond or deposit substitute like the DE-1378IT.

Here is what you will learn in this guide:

📋 What DE-1378IT actually does and which CUIC sections force you to file it
🧾 Every document, ID number, and signature you must gather before opening the form
✍️ A line-by-line walkthrough of every box, including the Penal Sum and Notary Acknowledgment
👥 Three full named-filer scenarios showing exactly what each person enters
⚠️ The 10 most common DE-1378IT mistakes and the direct consequences each one triggers

What Form DE-1378IT Is and Who Must File It

Form DE-1378IT is a three-party suretyship agreement among the Principal (the employer), the Surety (a corporate or individual bonding company), and the Obligee (the State of California, acting through EDD). The bond guarantees that if the employer loses the appeal, the surety pays EDD the full assessed amount — taxes, penalties, and interest — up to the penal sum listed on the form. The form is authorized by CUIC §1731, which lets a petitioner post a bond instead of paying the disputed tax in cash.

The typical filer is an employer who has just received a Notice of Assessment (DE 1538) and wants to file a Petition for Reassessment without first writing EDD a check. Staffing agencies, restaurants, construction contractors, and gig-economy employers facing worker-misclassification assessments under AB 5 are the heaviest users. CPAs, enrolled agents, and payroll-tax attorneys often complete DE-1378IT on behalf of clients, but the employer’s officer must still sign as Principal.

Anyone protesting an EDD payroll tax assessment greater than the cash they can spare must consider DE-1378IT. The bond is also required when an employer wants to halt a Notice of Levy while a Petition for Rehearing is pending under CUIC §1336. Federal interaction matters too: a successful state appeal can flow through to your IRS Form 940 FUTA credit, so getting DE-1378IT right protects both state and federal positions.

Before You Start: Documents and Information You Need

Posting a surety bond is not a 10-minute task. Underwriters need paperwork, EDD needs originals, and the notary needs IDs. Gathering these items first cuts filing time from weeks to days.

Notice of Assessment (DE 1538). The penal sum on your bond is built from the numbers on this notice; missing it means the surety cannot underwrite.
Employer Account Number (EAN). Your 8-digit EDD account number identifies the assessment; entering the wrong EAN routes your bond to the wrong file.
Federal Employer Identification Number (FEIN). EDD cross-checks FEIN against IRS records; a mismatch triggers a manual hold.
Petition for Reassessment. The bond and the petition travel together; without the petition, the bond has nothing to secure.
Surety’s Certificate of Authority from the California Department of Insurance. Only CDI-admitted sureties are accepted by EDD.
Power of Attorney from the surety. This authorizes the attorney-in-fact to bind the surety on your specific bond.
Notary Public. California requires personal appearance and a California-compliant acknowledgment on both signature blocks.
Corporate resolution or operating agreement. Proves the officer signing as Principal has authority to bind the entity.
Premium payment receipt. Surety bond premiums typically run 1–3% of the penal sum and must be paid before the surety releases the bond.

If any item is missing, the surety will not issue the bond and EDD will not accept the petition as bonded. The petition then proceeds as unbonded, which means EDD can begin enforced collection 30 days after the assessment.

Where to Get the Form and How to Access It

The official current revision lives on EDD’s forms portal at edd.ca.gov forms and is downloadable as a fillable PDF directly from edd.ca.gov DE-1378IT. EDD updates the form periodically, and the revision date prints in the lower-left corner — confirm it matches the version cited in your petition.

You can also pick up a paper copy at any Employment Tax Office (ETO), and most California-admitted surety carriers keep stocked copies for their underwriters. Tax attorneys subscribed to Spidell or CCH AnswerConnect can also pull the form from those research libraries.

The form is not available through e-Services for Business because the bond requires wet ink signatures from the Principal, the Surety’s attorney-in-fact, and a notary. EDD has not authorized electronic surety bond filing for DE-1378IT as of the most recent revision. If you receive a digital DE-1378IT from a third-party vendor, verify the revision date matches the EDD posted version before using it.

Step-by-Step: How to Fill Out DE-1378IT Line by Line

The form is one page on its face but carries a notary acknowledgment and a Power of Attorney as required attachments. Work top to bottom, and do not sign anything until your notary is in the room.

Field 1: Bond Number

This field asks for the unique bond number assigned by your surety carrier. The surety — not you — issues this number when the bond is underwritten, and it appears on the carrier’s bond register. Enter the number exactly as the surety prints it, including any prefix letters and leading zeros, in the top-right corner.

For example, Maria Lopez, controller of Lopez Staffing LLC, writes “SB-2026-0044871” in the Bond Number field after her surety, Travelers Casualty, issues the bond. The number must match the surety’s internal records or EDD cannot verify the bond if the employer defaults.

A common edge case is a replacement bond issued after a rider, which gets a new bond number even though the underlying assessment is the same — never reuse the old number. The most common mistake is leaving this field blank because the filer thinks EDD assigns it; the consequence is automatic rejection by the EDD Bond Desk. A frequent misconception is that the bond number must match the EDD case number — it does not, and entering the case number here voids the bond’s verifiability.

Field 2: Principal Name and Address

This field asks for the legal name and physical business address of the employer protesting the assessment. Use the exact legal name on file with the California Secretary of State — not a DBA, not a shortened version. Include the suite or unit number, city, county, state, and ZIP+4.

For example, Carlos Reyes, owner of Reyes Drywall Inc., writes “Reyes Drywall, Inc., 4421 Mission Blvd., Suite 210, San Diego, CA 92113-2245” in the Principal block. The legal name must match what is on the Notice of Assessment.

If the employer operates under a DBA, list the legal name first and the DBA in parentheses (e.g., Reyes Drywall, Inc. dba Reyes Builders). The most common mistake is entering the trade name instead of the corporate name, which causes the bond to be unenforceable against the actual liable entity. A misconception is that a P.O. Box is acceptable here — it is not, because EDD must be able to serve process at a physical address.

Field 3: Surety Name and Address

This field asks for the legal name and home-office address of the surety company issuing the bond. Use the carrier’s name as it appears on its California Certificate of Authority. Include the full statutory home-office address, not the local branch address.

For example, the underwriter at Liberty Mutual writes “Liberty Mutual Insurance Company, 175 Berkeley Street, Boston, MA 02116” even though the bond was issued out of the Glendale, CA branch. EDD verifies admitted-carrier status against CDI’s database using the home-office address.

A nuance: if the bond is co-surety (two carriers splitting the penal sum), each surety gets its own DE-1378IT. The most common mistake is listing a non-admitted carrier — EDD rejects the bond on its face, and you lose the 30-day petition window. A misconception is that an out-of-state surety with a national footprint is automatically admitted in California; only carriers on the CDI admitted list qualify.

Field 4: Penal Sum

This is the dollar amount the surety promises to pay if the employer loses the appeal. The plain-English question is: what is the maximum the surety is on the hook for? Calculate it as the assessed tax + assessed penalties + interest accrued through the projected appeal date, then add a 10–15% buffer for additional interest accruing during the appeal.

For example, Lopez Staffing’s assessment is $187,420 in tax, $37,484 in penalties, and $14,200 in interest, totaling $239,104; Maria writes the penal sum as “$275,000.00” — a 15% buffer over the running total. Underwriters usually price the bond at 1.5% of penal sum, so Maria’s premium runs about $4,125.

The most common mistake is using only the tax figure and ignoring penalties and interest, which leaves the bond underfunded; if the employer loses, EDD collects the bond and then resumes collection on the unbonded portion. A misconception is that the penal sum can be lowered after filing — it cannot without a rider, which costs additional premium.

Field 5: Date of Notice of Assessment

This field asks for the date printed on the DE 1538 Notice of Assessment the employer is protesting. Use MM/DD/YYYY format. This date starts the 30-day clock under CUIC §1222.

For example, Carlos Reyes writes “03/14/2026” because his DE 1538 was issued on March 14, 2026, giving him until April 13, 2026 to file his petition with the bond. Missing the 30-day window makes the assessment final under CUIC §1224.

A nuance: if EDD reissues the notice after correction, use the reissue date. The most common mistake is using the petition-drafting date instead of the assessment date; this misaligns the petition with the actual deadline and risks dismissal as untimely. A misconception is that the postmark on the assessment envelope counts — only the date printed on the notice itself controls.

Field 6: EDD Employer Account Number (EAN)

This field asks for the employer’s 8-digit EDD account number. Write it with the hyphen as printed on EDD correspondence, e.g., 123-4567-8. The EAN is not the FEIN.

For example, Janet Wu, CFO of Wu Restaurants Group, writes “456-7890-1” because that is the EAN on her DE 9 quarterly returns. EDD uses the EAN to route the bond to the correct assessment file.

A nuance: some employers have multiple EANs (one per legal entity); use the EAN tied to the protested assessment, not the parent’s EAN. The most common mistake is writing the FEIN here, which causes the bond to be filed under the wrong account and leaves the right account exposed to collection. A misconception is that EDD will “figure out” the right account — they will not, and the bond sits in unprocessed inventory.

Field 7: Conditions of the Bond

This is preprinted boilerplate language tracking CUIC §1731 — do not modify it. The clause states the bond is conditioned on the Principal paying any final assessment if the petition fails. Read it once to confirm it matches the form’s revision date.

For example, the 2024 revision reads, “The condition of this obligation is such that if the above-named Principal shall pay…”; the 2026 revision adds a reference to electronic service of decisions. Confirm the revision matches your petition’s recitals.

A nuance: hand-edited bonds — even fixing typos — are rejected because the conditions clause is statutory. The most common mistake is striking through and initialing a word, which voids the bond. A misconception is that crossing out non-applicable language “tightens” the bond — it actually creates a non-conforming instrument that EDD must reject.

Field 8: Principal’s Signature Block

The Principal’s signature block requires a wet-ink signature, the signer’s printed name, the signer’s title, and the date. The signer must be an officer, member, or partner with authority to bind the entity. Sign in blue ink so EDD can distinguish original from photocopy.

For example, Maria Lopez signs “Maria Lopez,” prints “Maria Lopez,” writes title “Managing Member,” and dates “04/02/2026”. She attaches a corporate resolution showing the LLC’s members authorized her to post the bond.

A nuance: sole proprietors sign in their personal name, not a DBA. The most common mistake is having a bookkeeper or office manager sign without authority, which makes the bond voidable. A misconception is that any officer can sign — only those listed on the entity’s authorizing document qualify.

Field 9: Surety’s Signature Block (Attorney-in-Fact)

The Surety’s block is signed by the attorney-in-fact named on the Power of Attorney attached to the bond. The signer prints the surety’s full corporate name, then signs “By: [name], Attorney-in-Fact,” prints their name, and dates the signature.

For example, Travelers’ attorney-in-fact, Karen Bell, signs “Travelers Casualty and Surety Company of America, By: Karen Bell, Attorney-in-Fact” and attaches the original Power of Attorney with the embossed corporate seal.

A nuance: the Power of Attorney must be dated the same day or earlier than the bond — never later. The most common mistake is attaching a photocopy of the POA instead of the original; EDD rejects photocopied POAs under CCR Title 22 §1731-1. A misconception is that a “general” POA covers any bond — most surety POAs are penal-sum-limited, and a bond exceeding the POA limit is unenforceable.

Field 10: Notary Acknowledgment

California requires a statutory acknowledgment attached to each signature. The notary verifies the signer’s identity by government-issued photo ID, watches the signing, and completes the acknowledgment certificate with venue, date, signer name, and notary seal.

For example, the notary writes, “State of California, County of San Diego, On 04/02/2026 before me, Linda Park, Notary Public, personally appeared Carlos Reyes…” and affixes the seal.

A nuance: California prohibits jurats on surety bonds — use only the all-purpose acknowledgment. The most common mistake is using an out-of-state acknowledgment form, which is not valid for California filings. A misconception is that a remote online notarization is acceptable — California’s SB 696 RON law has limited rollout, and EDD currently requires in-person notarization for DE-1378IT.

Field 11: Effective Date

This field asks for the date the bond becomes operative, typically the same day as signing. Use MM/DD/YYYY format. The effective date must be on or before the petition filing date.

For example, Janet Wu writes “05/10/2026” because she is filing the petition the same afternoon she signs the bond.

A nuance: if the petition is filed by mail, use a same-day or earlier effective date so the bond is in force when EDD receives the petition. The most common mistake is post-dating the effective date, which means the petition arrives unbonded and starts collection. A misconception is that the bond can be made retroactive — it cannot, and any retroactive language is unenforceable.

Field 12: Bond Premium and Underwriter Stamp

Most carriers preprint the premium amount and stamp the underwriter’s name in the lower-right margin. While EDD does not verify the premium, an unstamped bond looks irregular and may be flagged for review.

For example, Liberty Mutual stamps “Premium $4,125.00 — Underwriter J. Patel” on Lopez Staffing’s bond.

A nuance: the premium is non-refundable even if you win the appeal — it pays for the carrier’s risk. The most common mistake is leaving the premium blank, which slows EDD review. A misconception is that the premium is recoverable as a litigation cost — California does not allow surety premium recovery against EDD.

Three Filled-Out Examples Using Real Scenarios

Scenario 1: Maria Lopez — Staffing Agency Misclassification Assessment

Lopez Staffing LLC received a $239,104 assessment after EDD reclassified 47 of its 1099 workers as employees under AB 5.

Form Section	What Maria Enters
Bond Number	SB-2026-0044871
Principal Name & Address	Lopez Staffing, LLC, 1200 Wilshire Blvd., Suite 800, Los Angeles, CA 90017
Surety Name & Address	Travelers Casualty and Surety Company of America, One Tower Square, Hartford, CT 06183
Penal Sum	$275,000.00
Date of Notice of Assessment	03/01/2026
EDD EAN	234-5678-9
Principal Signature	Maria Lopez, Managing Member, 04/02/2026
Surety Signature	Travelers Casualty, By: Karen Bell, Attorney-in-Fact, 04/02/2026
Notary Acknowledgment	Los Angeles County, Notary Linda Park, Comm. #2456789
Premium	$4,125.00

Scenario 2: Carlos Reyes — Drywall Contractor Subcontractor Reclassification

Reyes Drywall, Inc. faces a $52,000 assessment from a subcontractor reclassification audit covering 2023–2024.

Form Section	What Carlos Enters
Bond Number	BCA-2026-1199
Principal Name & Address	Reyes Drywall, Inc., 4421 Mission Blvd., Suite 210, San Diego, CA 92113-2245
Surety Name & Address	Old Republic Surety Company, 445 South Moorland Rd., Brookfield, WI 53005
Penal Sum	$60,000.00
Date of Notice of Assessment	03/14/2026
EDD EAN	345-6789-0
Principal Signature	Carlos Reyes, President, 03/28/2026
Surety Signature	Old Republic Surety, By: David Nguyen, Attorney-in-Fact, 03/28/2026
Notary Acknowledgment	San Diego County, Notary Janet Cho, Comm. #2398122
Premium	$900.00

Scenario 3: Janet Wu — Restaurant Tip-Reporting Assessment

Wu Restaurants Group, Inc. received a $96,300 assessment for unreported tip wages across three restaurant locations.

Form Section	What Janet Enters
Bond Number	PHL-2026-7741
Principal Name & Address	Wu Restaurants Group, Inc., 88 Sansome St., San Francisco, CA 94104
Surety Name & Address	Philadelphia Indemnity Insurance Company, 231 St. Asaphs Rd., Bala Cynwyd, PA 19004
Penal Sum	$110,000.00
Date of Notice of Assessment	04/12/2026
EDD EAN	456-7890-1
Principal Signature	Janet Wu, Chief Financial Officer, 05/10/2026
Surety Signature	Philadelphia Indemnity, By: Robert Chen, Attorney-in-Fact, 05/10/2026
Notary Acknowledgment	San Francisco County, Notary Aisha Thomas, Comm. #2511904
Premium	$1,650.00

How to File the Completed Form

DE-1378IT must be filed alongside the Petition for Reassessment within 30 days of the Notice of Assessment date.

By Mail (preferred channel): Send the original signed and notarized DE-1378IT, the original Power of Attorney, and the Petition for Reassessment to Employment Development Department, Tax Branch, MIC 92F, P.O. Box 826880, Sacramento, CA 94280-0001. There is no filing fee. Use USPS Certified Mail with Return Receipt and keep the green card as proof of filing; processing time is 4–6 weeks for the EDD Bond Desk to enter the bond into the system.

In Person: Drop the originals at any Employment Tax Office, where the clerk date-stamps your copy. No fee. Keep the date-stamped copy as proof of filing; the bond is processed within 2–3 weeks once it reaches Sacramento.

By Fax: EDD does not accept faxed surety bonds because original signatures and seals are required.

Through CUIAB: If you missed EDD’s window but filed a timely Petition for Rehearing under CUIC §1336, file the bond directly with the CUIAB Appellate Office at 2400 Venture Oaks Way, Suite 100, Sacramento, CA 95833. CUIAB stamps and forwards to EDD. Processing time runs 6–8 weeks.

E-Services for Business: Not available for DE-1378IT due to wet-ink signature requirements.

What Happens After You File

EDD’s Bond Desk reviews the bond for completeness, verifies the surety on the CDI admitted carriers list, and confirms the penal sum covers tax + penalty + interest with a buffer. If everything checks out, EDD issues a Bond Acceptance Letter and freezes collection on the assessment.

If the bond is deficient, EDD sends a deficiency notice giving the employer 15 days to cure. Typical cures include increasing the penal sum, replacing a non-admitted surety, or providing the original Power of Attorney. Failure to cure means the assessment becomes final under CUIC §1224 and EDD can begin levies, liens, and Notice of State Tax Lien recordings.

Once accepted, the bond stays in force until CUIAB issues a final decision. If the employer wins, EDD releases the bond and the surety closes the file. If the employer loses, the surety has 30 days to pay EDD up to the penal sum, then the surety pursues the employer under the General Indemnity Agreement signed at underwriting.

Mistakes to Avoid When Filling Out the Form

Wrong penal sum. Calculating only tax instead of tax + penalty + interest leaves the bond short, and EDD pursues the deficiency directly against the employer.
Non-admitted surety. Using a carrier not on CDI’s admitted list voids the bond on its face, and EDD rejects the petition as unbonded.
Photocopied Power of Attorney. EDD requires the original POA with embossed seal; a photocopy is rejected and the petition runs unbonded.
Missing notary acknowledgment. Bonds without California-compliant acknowledgments are returned, and the cure period rarely fits within the original 30-day window.
Wrong EAN. Entering the FEIN or a parent entity’s EAN files the bond against the wrong account and leaves the actual account exposed to collection.
Post-dated effective date. A bond effective after the petition filing date means the petition is unbonded on arrival, triggering collection.
Unauthorized signer. A bookkeeper or office manager signing without a corporate resolution makes the bond voidable, and the surety can deny coverage.
Striking through preprinted language. Editing the conditions clause creates a non-conforming instrument; EDD rejects it under CCR Title 22 §1731-1.
DBA instead of legal name. Bonds in the DBA’s name are unenforceable against the legal entity, leaving EDD with no real obligor.
Mailing without certified tracking. A lost bond means the employer cannot prove timely filing, and EDD treats the petition as untimely.
Forgetting the petition. A bond without an accompanying Petition for Reassessment has nothing to secure, and EDD returns it unfiled.
POA penal sum lower than bond penal sum. The bond is enforceable only up to the POA limit, so EDD treats the excess as unbonded.

Do’s and Don’ts

Do’s:

Do verify the surety’s CDI admission before signing — a 30-second check at CDI’s company search prevents rejection.
Do calculate the penal sum with at least a 10–15% interest buffer because appeals routinely run 12–18 months.
Do sign in blue ink so EDD’s Bond Desk can identify the original from any photocopies.
Do attach the original Power of Attorney with the embossed corporate seal because photocopies are auto-rejected.
Do mail the bond by USPS Certified Mail with Return Receipt because that green card is your proof of timely filing.
Do keep a notarized copy of the entire packet because EDD occasionally misfiles bonds and you may need to re-prove timeliness.

Don’ts:

Don’t edit the preprinted conditions clause, even to fix a typo, because any alteration voids the bond.
Don’t use a P.O. Box for the Principal address because EDD requires a service-of-process address.
Don’t let a non-officer sign as Principal without a corporate resolution because the bond becomes voidable.
Don’t post-date the effective date because the petition will arrive unbonded and trigger collection.
Don’t assume e-Services for Business accepts surety bonds because wet-ink signatures are still mandatory.
Don’t rely on photocopies of the Power of Attorney because EDD rejects all non-original POAs.

Pros and Cons of Filing on Your Own vs. With Help

Pros of Filing Pro Se:

Saves attorney fees that often run $5,000–$25,000 for assessment defense engagements.
Keeps the employer in direct contact with the surety underwriter, which can speed quotes.
Forces the employer to learn the CUIC statutory framework, useful for future audits.
Allows direct negotiation with EDD’s Settlements Office under CUIC §1236.
Avoids attorney scheduling delays during the tight 30-day window.

Cons of Filing Pro Se:

One missed signature line can blow the entire 30-day window because cure periods rarely fit.
Employers usually under-calculate the penal sum, leaving deficiencies that resurface as collection actions.
Pro se filers rarely know to attach the corporate resolution authorizing the signer.
Negotiating with EDD auditors without a tax attorney often yields worse settlement multiples.
Surety underwriters quote higher premiums to unrepresented employers because perceived risk is higher.

FAQs

Q: Is DE-1378IT the same as a cash deposit? No — DE-1378IT substitutes a surety bond for the cash deposit otherwise required under CUIC §1731; the bond costs a small premium instead of the full assessment in cash.

Q: Can I file DE-1378IT after the 30-day petition deadline? No — the bond must accompany a timely petition or rehearing request; filing late means the assessment is final under CUIC §1224.

Q: Do I write my FEIN or my EAN in Field 6? No — the EAN is required, not the FEIN; entering the FEIN routes the bond to the wrong file and leaves the assessment account exposed.

Q: Can the Principal address in Field 2 be a P.O. Box? No — EDD requires a physical street address for service of process; a P.O. Box triggers a deficiency notice within 15 days.

Q: Is a photocopy of the Power of Attorney acceptable? No — EDD requires the original POA with the embossed surety seal; photocopies are auto-rejected at the Bond Desk.

Q: Does the penal sum in Field 4 need to exceed the assessment? Yes — it should cover tax + penalties + interest plus a 10–15% buffer for interest accruing during the appeal.

Q: Can I sign DE-1378IT remotely with online notarization? No — EDD requires in-person California notarization; remote online notarization is not currently accepted for DE-1378IT.

Q: Is there a filing fee for DE-1378IT? No — EDD charges no filing fee, but the surety charges a premium typically running 1–3% of the penal sum.

Q: Can my CPA sign as Principal in Field 8? No — only an officer, member, or partner with authority to bind the entity may sign; a CPA without that authority makes the bond voidable.

Q: Does winning the appeal refund my surety premium? No — the premium is non-refundable because it paid for the surety’s risk during the appeal period.

Q: Can I file the bond through e-Services for Business? No — e-Services does not accept surety bonds because wet-ink signatures and original seals are mandatory.

Q: Does DE-1378IT also stop IRS collection? No — DE-1378IT only stops EDD collection; the IRS pursues federal payroll tax separately under IRC §6672.

Q: Can the same bond cover two separate assessments? No — each Notice of Assessment requires its own DE-1378IT because the bond is tied to one specific assessment number.

Q: Will EDD release the bond automatically if I win? Yes — EDD issues a release letter to the surety within 30 days of CUIAB’s final decision in the employer’s favor.

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