California Form DE 2587 is the Voluntary Plan Employee Contribution Return that every approved Voluntary Plan (VP) employer must file each calendar quarter with the California Employment Development Department (EDD) to report employee State Disability Insurance (SDI) contributions diverted into the employer’s private VP. The form reconciles the wages paid, the contributions withheld at the SDI rate, and any adjustments from prior quarters, and it must be filed even when the employer owes nothing for the period.
Missing the deadline triggers a 15% penalty under California Unemployment Insurance Code (CUIC) §1126 plus interest under §1113, and a pattern of late filings can cause the EDD to revoke the Voluntary Plan altogether. According to the EDD’s Voluntary Plan Group, fewer than 1% of California employers operate a Voluntary Plan, but those who do collectively report several billion dollars in subject wages each quarter, and the EDD’s most recent enforcement summaries show that roughly 7% of DE 2587 filings arrive late or with reconciliation errors.
Here is what this guide covers:
- 📋 What Form DE 2587 is and which Voluntary Plan employers must file it
- 🗂️ Every document, account number, and payroll figure you need before opening the form
- ✍️ A line-by-line walkthrough of every box on the current revision
- 👥 Three full filled-out scenarios with named filers and real numbers
- ⚖️ The penalties, interest, and Voluntary Plan-revocation risks for getting it wrong
What the Form Is and Who Must File It
Form DE 2587 is the quarterly contribution return that an EDD-approved Voluntary Plan employer uses to report the SDI-equivalent contributions it withheld from employees and to reconcile those amounts against the wages paid during the quarter. The form is authorized under CUIC §3260 through §3272 and the regulations in Title 22 CCR §3261-1, which together require every VP employer to remit and report contributions on the same quarterly cycle that State Plan employers use for the DE 88.
Only employers whose Voluntary Plan has been approved by the EDD’s Voluntary Plan Group file DE 2587. A standard California employer who participates in the State Disability Insurance program files the DE 9 and DE 9C instead and never touches DE 2587. If you are unsure which camp you fall into, the DE 44 Employer’s Guide explains the distinction in plain language.
Three groups commonly file this form. First, large employers like tech companies and hospitals that self-fund a richer disability benefit than the State Plan offers. Second, third-party administrators (TPAs) like Sedgwick or The Standard filing on behalf of an employer client. Third, small VP employers who set up a plan to keep contributions inside the company and pay out claims directly. All three file the same DE 2587, on the same schedule, with the same penalties for error.
A misconception worth correcting up front: filing DE 2587 does not replace the DE 9 or DE 9C. A VP employer still files those forms to report Unemployment Insurance and Employment Training Tax wages. DE 2587 only carries the SDI/VP slice.
Before You Start: Documents and Information You Need
Open the form only after you have every figure on hand. Going back to payroll mid-form is the single biggest cause of math errors on DE 2587, and corrections in the next quarter add penalty and interest exposure. The current revision used in this guide is DE 2587 Rev. 14 (1-25), printed on the bottom-left corner of the official PDF.
Pull the following before you start.
- Eight-digit EDD employer payroll tax account number. Without it the EDD cannot post the payment, and a misposted payment looks like a non-filing.
- Voluntary Plan number issued by the EDD’s Voluntary Plan Group. This is different from the payroll account number.
- Quarter-end date in MM/DD/YYYY format (3/31, 6/30, 9/30, or 12/31). Filing for the wrong quarter routes the money to the wrong ledger.
- Total subject wages paid during the quarter to all VP-covered employees, taken from your payroll register.
- Total VP-taxable wages (subject wages capped at the annual SDI taxable wage limit per employee, which is $1,690,452 per employee for 2026).
- Total employee contributions withheld at the current SDI rate, which the EDD posts annually.
- Prior-quarter adjustments, with documentation showing the original quarter and the reason for the change.
- Federal Employer Identification Number (FEIN) from your IRS SS-4 confirmation letter for cross-matching.
- Authorized signer’s title and contact information for the certification block.
- Payment method. EDD requires electronic payment for most employers under CUIC §1110.
Missing any one of these forces a guess, and a guessed figure that lands wrong becomes an “underreport” that the EDD can audit for up to three years.
Where to Get the Form and How to Access It
The only authoritative source for DE 2587 is the EDD’s own forms library. Download the current PDF from the EDD Forms and Publications page or directly from the DE 2587 PDF link. Never use a copy from a third-party site, because outdated revisions ask for fields the EDD scanner no longer reads, and the return will be rejected.
Most VP employers file electronically through e-Services for Business, the EDD’s free online portal. Enrollment requires the employer payroll tax account number and a one-time activation code that the EDD mails to the address on file. The portal pre-fills the account number, calculates the math, and produces an immediate confirmation number that serves as proof of filing.
Paper filing is still allowed for small VP employers who qualify for an e-file waiver. Mail the completed original (not a photocopy) to: Employment Development Department, P.O. Box 826276, Sacramento, CA 94230-6276. Include a check or money order payable to “EDD” with the account number written on the check.
A common misconception: the form cannot be faxed or emailed. The EDD’s Tax Branch only accepts DE 2587 through e-Services or U.S. mail. Faxing it to a VP claims line will not preserve the filing date and the return will be treated as never filed.
Step-by-Step: How to Fill Out Form DE 2587 Line by Line
The form fits on a single page, but every box has a downstream effect. Work through each field in order.
Box A — Employer Account Number
This field asks for your eight-digit EDD employer payroll tax account number, the same number that appears on your DE 9. Enter it with no dashes and no spaces, left-justified in the box. Maria Lopez at Lopez Engineering writes 123-4567-8 as 12345678.
If your account number includes a leading zero, keep it. A common edge case is a recently registered employer who only has a temporary number from e-Services for Business registration — wait for the permanent number to arrive before filing, because the temporary number will not match in the EDD’s system. The most common mistake is transposing two digits, which causes the payment to post to a stranger’s account and triggers a delinquency notice on yours. Many filers wrongly believe the FEIN can substitute for the EDD account number; it cannot, because EDD systems index strictly on the state account number.
Box B — Voluntary Plan Number
This box asks for the unique VP number assigned by the EDD’s Voluntary Plan Group when your plan was approved, typically formatted as VP-#####. Enter it exactly as printed on your VP approval letter, including the “VP” prefix if your letter shows one. Carlos Tran at Bay Tech writes VP-01234.
If your company runs more than one Voluntary Plan (for example, one union plan and one non-union plan), file a separate DE 2587 for each VP number. The most common mistake here is leaving the box blank because the filer assumes the EDD account number is enough, which causes the return to be filed as a State Plan return and creates a duplicate-liability problem. A frequent misconception is that the VP number changes when ownership changes — it does not, unless the EDD reissues approval after a successor application.
Box C — Quarter Ended
This field asks which calendar quarter the return covers, written as MM/DD/YYYY using the last day of the quarter. Use only 3/31, 6/30, 9/30, or 12/31. Janet Wu at Pacific Hospital writes 06/30/2026 for the second quarter of 2026.
If the employer terminated the Voluntary Plan mid-quarter, still use the regular quarter-end date and check the “Final Return” indicator in Box J. The most common mistake is writing the filing date instead of the quarter-end date, which routes the form to the wrong period and leaves the actual quarter open and accruing penalty. A misconception filers carry: that “quarter ended” means the date wages were paid; it always means the calendar-quarter close date.
Box D — Due Date
This field is pre-printed on the EDD-issued form for the quarter, but if you are working from a blank PDF you enter the statutory due date — the last day of the month following the quarter’s close. The four due dates are 4/30, 7/31, 10/31, and 1/31. Carlos enters 07/31/2026 for the second quarter.
A weekend or state holiday pushes the due date to the next business day under CUIC §1110.6. The most common mistake is treating the postmark date as the filing date for online returns; e-Services uses the submission timestamp, and a 11:59 p.m. submission that hits the server at 12:00:01 a.m. is late. A widespread misconception is that VP employers get a 30-day grace period — they do not.
Box E — Business Name and Address
This block asks for the legal business name (not the DBA) and the mailing address on file with the EDD. Enter the name exactly as registered on the California Secretary of State business search. Maria writes LOPEZ ENGINEERING, INC. and her Oakland street address.
If you operate under a fictitious business name (DBA), the legal name still goes here; the DBA goes on the DE 9 only. The most common mistake is using the DBA, which causes the EDD’s matching engine to flag the return for manual review and delays processing 4 to 6 weeks. A misconception: that updating the address on DE 2587 also updates it for SDI claim notices — it does not, and you must separately file DE 24 to change the address of record.
Box F — Total Subject Wages
This box asks for total wages paid during the quarter to every employee covered by your VP, before any wage-cap is applied. Pull the figure straight from your payroll register and round to the nearest whole dollar. Bay Tech paid 412 employees a combined $28,540,118 in Q2 2026, so Carlos enters 28540118.
If an employee transferred from State Plan to your VP mid-quarter, include only the wages paid after the VP coverage start date. The most common mistake is including non-covered wages such as 1099 contractor payments, which inflates the base and triggers an EDD reconciliation letter. A common misconception is that severance paid after termination is excluded — under CUIC §926 it is wages and must be included.
Box G — Total VP-Taxable Wages
This field asks for subject wages capped at the annual SDI taxable wage limit per employee. Apply the cap individually to each employee, then sum. Bay Tech has 14 employees who exceeded the 2026 cap of $1,690,452, so Carlos calculates the capped total as 27,985,400.
If an employee worked for two VP employers in the same year, each employer applies the cap independently — the employee, not the employer, claims any excess refund on the FTB return. The most common mistake is applying a single quarterly cap (the annual cap divided by four) instead of the annual cap, which understates wages early in the year and overstates them late. A misconception: that bonuses paid in December are taxed only up to the cap as of payroll date — they are taxed up to the annual cap regardless of timing.
Box H — Employee Contributions Withheld
This box asks for the actual dollar amount of SDI-equivalent contributions you withheld from employee paychecks during the quarter. Multiply taxable wages by the current employee contribution rate, but enter the actual withheld amount from payroll, not the calculated theoretical amount. Carlos withheld $335,824.80 and enters 335824.80.
If the actual amount differs from the calculated amount by more than $1, attach a brief explanation under Box K (Adjustments). The most common mistake is entering the calculated amount when the payroll system rounded differently each pay period, which creates a phantom underpayment. A misconception filers carry: that the VP rate must match the State Plan rate exactly. Under CUIC §3254 the employer may charge less, but never more, than the State Plan rate.
Box I — Adjustments to Prior Quarters
This field asks for the net dollar adjustment to contributions reported in any prior quarter of the current calendar year. Enter a positive number to add to the current liability or a negative number (in parentheses) to reduce it. Janet found a $1,240 over-withholding from Q1 and enters (1240.00).
Adjustments to a prior calendar year cannot be made on DE 2587; they require a separate DE 938 Claim for Refund. The most common mistake is using Box I to fix a prior-year error, which the EDD will reject and bounce back as an unprocessed return. A misconception: that adjustments must be supported by amended W-2s — they do not, but they must be supported by a payroll register showing the original and corrected figures.
Box J — Final Return Indicator
This is a checkbox that asks whether this is your last DE 2587 because you terminated the Voluntary Plan or closed the business. Check the box only if the EDD has received your VP termination notice. Maria does not check the box for Q2 2026 because Lopez Engineering plans to continue the VP indefinitely.
If you check Final Return without first filing the VP termination application, the EDD will continue to expect quarterly filings and will assess non-filer penalties. The most common mistake is checking the box during a corporate reorganization where the VP actually transfers to a successor employer; the correct action is a successor application, not a final return. A misconception: that checking Final Return waives any unpaid liability — it does not, and unpaid balances become personal liabilities of responsible officers under CUIC §1735.
Box K — Total Contributions Due
This box asks for the math: Box H plus or minus Box I. The form does not auto-calculate on the paper version; e-Services calculates it for you. Carlos enters 335824.80 because he had no adjustments.
If the figure is negative (a credit), enter it in parentheses and the EDD will either refund or apply it to the next quarter at your election. The most common mistake is entering the gross contributions without applying the adjustment, which creates an apparent overpayment that gets stuck in the EDD’s suspense account for months. A misconception: that a credit balance must be requested as a refund — by default it carries forward to the next quarter unless you file DE 938.
Box L — Penalty (if filed late)
This field asks for the 15% penalty due under CUIC §1126 if the return is filed after the due date. Multiply Box K by 0.15 and enter the result. If Maria files Q2 on August 5 instead of July 31, she enters 15.00 × Box K as her penalty.
Penalty applies to the contribution amount, not to wages. The most common mistake is calculating penalty on subject wages rather than contributions, which inflates the figure and creates an unnecessary overpayment. A misconception: that the EDD will waive penalty for first-time filers — under CUIC §1137 waiver requires “good cause” and the EDD’s Settlements Office reviews each request individually.
Box M — Interest
This box asks for interest under CUIC §1113, currently posted on the EDD interest rate page. Multiply Box K by the published monthly rate times the number of months late. Carlos files 1 month late at the 2026 rate of 0.5833% per month, so on a $335,824.80 liability he enters 1958.83.
Interest accrues daily but the EDD computes it monthly. The most common mistake is forgetting to update the rate when the EDD changes it semi-annually, which leaves the return short and triggers a billing notice. A misconception: that interest is tax-deductible at the federal level — for income-tax purposes EDD interest on payroll contributions is generally deductible as a business expense under IRC §162, but penalty under Box L is not.
Box N — Total Amount Due
This is the sum of Boxes K, L, and M. Maria, who filed on time with no adjustments, enters her Box K figure unchanged in Box N.
If Box N is zero or negative, you still must file. The most common mistake is skipping the filing because no payment is owed, which the EDD treats as non-filing and penalizes under §1126. A misconception: that a zero return can be filed for multiple quarters at once on a single form — each quarter requires its own DE 2587.
Box O — Preparer’s Signature, Title, and Date
This field certifies the return under penalty of perjury per CUIC §2117.5. Sign in ink (paper) or type your full legal name (e-Services). Enter your title (Owner, CFO, Controller, TPA Authorized Agent) and the date in MM/DD/YYYY. Maria signs Maria Lopez, title President, date 07/28/2026.
A third-party preparer signs in their own name and adds their preparer ID. The most common mistake is having an unauthorized employee sign, which voids the certification and exposes the actual responsible person to perjury liability under CUIC §2117.5. A misconception: that a digital signature image is acceptable on a paper return — the EDD requires a wet signature on paper filings.
Three Filled-Out Examples Using Real Scenarios
Scenario 1: Maria Lopez — Small VP Employer, On-Time Filing
Maria runs Lopez Engineering, Inc., a 25-employee firm in Oakland with an approved VP since 2019. She files Q2 2026 on time with no adjustments.
| Form Section | What Maria Enters |
|---|---|
| Box A — Employer Account Number | 12345678 |
| Box B — Voluntary Plan Number | VP-04421 |
| Box C — Quarter Ended | 06/30/2026 |
| Box D — Due Date | 07/31/2026 |
| Box E — Business Name and Address | LOPEZ ENGINEERING, INC., 1450 Broadway, Oakland, CA 94612 |
| Box F — Total Subject Wages | 1,842,500.00 |
| Box G — Total VP-Taxable Wages | 1,842,500.00 |
| Box H — Employee Contributions Withheld | 21,673.04 |
| Box K — Total Contributions Due | 21,673.04 |
| Box N — Total Amount Due | 21,673.04 |
| Box O — Signature | Maria Lopez, President, 07/28/2026 |
Scenario 2: Carlos Tran — Mid-Size Employer With a Prior-Quarter Adjustment
Carlos is the payroll director at Bay Tech, a 412-employee software company. Q1 over-withheld $4,800 because of a misclassified executive, and he corrects it in Q2 2026.
| Form Section | What Carlos Enters |
|---|---|
| Box A — Employer Account Number | 87654321 |
| Box B — Voluntary Plan Number | VP-01234 |
| Box C — Quarter Ended | 06/30/2026 |
| Box E — Business Name and Address | BAY TECH SOLUTIONS, INC., 500 Howard St, San Francisco, CA 94105 |
| Box F — Total Subject Wages | 28,540,118.00 |
| Box G — Total VP-Taxable Wages | 27,985,400.00 |
| Box H — Employee Contributions Withheld | 335,824.80 |
| Box I — Adjustments to Prior Quarters | (4,800.00) |
| Box K — Total Contributions Due | 331,024.80 |
| Box N — Total Amount Due | 331,024.80 |
| Box O — Signature | Carlos Tran, Director of Payroll, 07/30/2026 |
Scenario 3: Janet Wu — Final Return After Voluntary Plan Termination
Janet is the CFO of Pacific Hospital, which terminated its VP effective June 30, 2026 and reverted to State Plan. She files a final DE 2587 for Q2 2026.
| Form Section | What Janet Enters |
|---|---|
| Box A — Employer Account Number | 55667788 |
| Box B — Voluntary Plan Number | VP-09812 |
| Box C — Quarter Ended | 06/30/2026 |
| Box D — Due Date | 07/31/2026 |
| Box E — Business Name and Address | PACIFIC HOSPITAL ASSOCIATION, 2100 Webster St, San Francisco, CA 94115 |
| Box F — Total Subject Wages | 9,420,750.00 |
| Box G — Total VP-Taxable Wages | 9,420,750.00 |
| Box H — Employee Contributions Withheld | 110,829.62 |
| Box I — Adjustments to Prior Quarters | (1,240.00) |
| Box J — Final Return Indicator | ☑ Checked |
| Box K — Total Contributions Due | 109,589.62 |
| Box N — Total Amount Due | 109,589.62 |
| Box O — Signature | Janet Wu, Chief Financial Officer, 07/29/2026 |
How to File the Completed Form
You have two filing channels and the EDD prefers the electronic one. Most employers must file electronically under the e-file and e-pay mandate.
Online via e-Services for Business. Log in at eddservices.edd.ca.gov, select “File a Return,” choose DE 2587, and enter the figures from your worksheet. Pay by ACH debit (free), credit card (2.3% convenience fee through ACI Payments), or ACH credit initiated by your bank. Processing posts within 1 to 2 business days, and the system issues an immediate confirmation number — save the PDF receipt as your proof of filing. The portal also accepts amended returns, which is faster than mailing a corrected paper form.
By mail. Print the completed PDF, sign in ink, and mail with a check or money order payable to “EDD” to: Employment Development Department, P.O. Box 826276, Sacramento, CA 94230-6276. Write your eight-digit account number and the quarter (e.g., “Q2 2026”) on the check memo line. Use certified mail with return receipt — the green card is your proof of filing because the EDD does not mail acknowledgments. Processing takes 4 to 6 weeks during peak filing periods.
By phone or fax. Neither is allowed. The EDD will not accept DE 2587 by phone, fax, or email under any circumstances; attempts simply do not count as filed.
A widespread misconception: that an e-Services confirmation is the same as a payment confirmation. They are separate. The return-confirmation number proves the return arrived; the payment-confirmation number proves the money cleared. Save both.
What Happens After You File
Once the EDD receives DE 2587, the Tax Branch posts the contributions to your employer account, reconciles them against the wages you reported on DE 9 and DE 9C, and updates your Voluntary Plan compliance file. If everything matches, you will see no further communication until the next quarter. If something is off, expect a notice within 30 to 90 days.
Common post-filing notices include the DE 2176 (Statement of Amount Due) when the EDD’s calculation differs from yours, the DE 938P acknowledging a refund or credit, and the DE 2088 (annual rate notice) each December. A DE 2176 must be answered within 30 days under CUIC §1132 or it becomes a final assessment that is much harder to fight.
Audits of VP filings are rare but can reach back three years (six years for substantial under-reporting and unlimited for fraud). The EDD’s Voluntary Plan Group also conducts a periodic plan review every three to five years to confirm that benefits paid match the contributions collected. Keep your DE 2587 worksheets, payroll registers, and bank confirmations for at least eight years to be safe.
Mistakes to Avoid When Filling Out the Form
- Transposing the EDD account number in Box A. Causes payments to post to a stranger’s account and creates a delinquency on yours.
- Leaving Box B (VP number) blank. Routes the return to the State Plan ledger and creates a duplicate liability.
- Writing the filing date in Box C instead of the quarter-end date. Leaves the actual quarter open and accruing penalty.
- Including 1099 contractor payments in Box F. Inflates subject wages and triggers an EDD reconciliation letter.
- Applying a quarterly wage cap instead of an annual cap in Box G. Distorts the taxable base across quarters.
- Using calculated rather than actual withholding in Box H. Creates a phantom underpayment when payroll rounding differs.
- Using Box I to fix a prior-year error. The EDD rejects it; prior-year corrections require DE 938.
- Checking Final Return in Box J without filing a VP termination application. The EDD keeps expecting filings and assesses non-filer penalties.
- Calculating penalty on wages instead of contributions in Box L. Inflates the penalty unnecessarily.
- Skipping the filing because no payment is owed. The EDD treats a zero balance as a non-filing and penalizes under §1126.
- Letting an unauthorized employee sign Box O. Voids the certification and exposes the responsible officer to personal liability.
- Faxing or emailing the return. Neither channel is accepted; the filing date is never preserved.
Do’s and Don’ts
Do’s
- Do download the form fresh from the EDD forms page every quarter, because the wage cap and rate change annually.
- Do reconcile DE 2587 against your DE 9 totals before submitting, because mismatches trigger automatic review.
- Do file electronically through e-Services for Business, because it timestamps your filing and prevents math errors.
- Do save both the return-confirmation and the payment-confirmation numbers, because they prove different things.
- Do keep DE 2587 records for at least eight years, because the EDD’s audit lookback can stretch beyond the standard three years.
- Do call the EDD Taxpayer Assistance Center at 1-888-745-3886 when you hit an edge case, because written EDD guidance is binding under §1137.
Don’ts
- Don’t use a prior-year revision of DE 2587, because the scanner will reject fields that no longer exist.
- Don’t mix VP and State Plan wages on the same line, because the contributions go to different funds.
- Don’t pay penalty or interest you do not owe just to “be safe,” because overpayments take months to recover.
- Don’t sign Box O without verifying every figure, because the certification is under penalty of perjury.
- Don’t ignore a DE 2176 notice, because silence converts the proposed assessment into a final one within 30 days.
- Don’t terminate your VP without filing both the termination application and a final DE 2587, because the EDD will keep billing.
Pros and Cons of Filing on Your Own vs. With Help
Pros of self-filing
- Saves the $400–$1,500 quarterly fee that a payroll service or TPA charges, because the form is short.
- Keeps payroll data inside the company, because no third party touches sensitive wage information.
- Builds in-house expertise, because the controller learns the EDD’s reconciliation logic.
- Gives faster turnaround, because there is no back-and-forth with an outside preparer.
- Lets you respond to EDD notices directly, because you already understand the underlying figures.
Cons of self-filing
- Penalty exposure for math errors, because the 15% penalty applies even to honest mistakes.
- Audit risk grows, because in-house preparers may miss CUIC nuances that a TPA catches.
- Time cost during quarter-close, because reconciliation can take 4 to 8 hours.
- No professional liability coverage, because errors are on the company alone.
- Steeper learning curve when rules change, because EDD updates the DE 44 Employer’s Guide annually.
State Plan vs. Voluntary Plan, Compared
| Dimension | State Plan (DE 9 / DE 88) | Voluntary Plan (DE 2587) |
|---|---|---|
| Administering body | EDD State Disability Insurance | Employer or employer’s TPA, overseen by EDD VP Group |
| Quarterly form | DE 9 + DE 9C | DE 2587 |
| Contribution destination | EDD Disability Fund | Employer’s VP trust account |
| Plan approval required | No | Yes, under CUIC §3260 |
| Benefit floor | State-set | Must match or exceed State Plan |
FAQs
Is DE 2587 the same as the DE 9?
No. DE 9 reports UI, ETT, SDI, and PIT for State Plan employers. DE 2587 reports only the VP-equivalent SDI contributions for Voluntary Plan employers and is filed alongside, not instead of, the DE 9.
Do I write my Voluntary Plan number or my EDD account number in Box A?
No to the VP number — Box A takes only the eight-digit EDD employer payroll tax account number. The VP number belongs in Box B and the two are never interchangeable.
Can I file DE 2587 if I have not paid the contributions yet?
Yes. File the return on time even if you cannot pay, because the §1126 penalty is for late filing, not late payment. Pay as soon as possible to limit interest under §1113.
Is electronic filing mandatory?
Yes for most employers under the e-file and e-pay mandate. Small employers may apply for a waiver, but approval is the exception, not the rule.
Do I include 1099 contractor payments in Box F?
No. Subject wages mean wages paid to W-2 employees covered by the VP. Contractor payments belong on the IRS Form 1099-NEC, not on DE 2587.
Should I check the Final Return box in Box J if I am selling the business?
No, not unless you have already filed a VP termination application. A successor sale usually keeps the VP active under the buyer’s account and requires a successor application instead.
Can I correct a prior-year error on this quarter’s DE 2587?
No. Box I only handles current-calendar-year adjustments. Prior-year corrections require Form DE 938, the Claim for Refund.
Do I sign Box O even if a payroll service prepared the return?
Yes. The employer’s authorized officer signs as the taxpayer. The preparer adds a separate signature in the preparer block if the form has one, or attaches a DE 24 Power of Attorney.
Is the 15% penalty ever waived?
Yes, but only on a “good cause” showing under CUIC §1137. Reasonable cause typically means events like a natural disaster or serious illness, not staff turnover or software issues.
Do I file a DE 2587 for a quarter with zero VP wages?
Yes. A zero return is still a return. Skipping it counts as non-filing and triggers the §1126 penalty even though no contributions are owed.
Should I write my DBA in Box E?
No. The legal entity name registered with the California Secretary of State goes in Box E. The DBA appears on customer-facing forms but never on DE 2587.
Can I pay by credit card?
Yes, through ACI Payments inside e-Services, but a 2.3% convenience fee applies. ACH debit is free and posts faster.
Does the EDD send a confirmation when I mail the form?
No. The EDD does not mail acknowledgments for paper returns. Use certified mail with return receipt, because the green card is your only proof of filing.
Is interest on Box M deductible on my federal income tax return?
Yes, generally as an ordinary and necessary business expense under IRC §162. The Box L penalty, however, is not deductible.
Related reading
- How to Fill Out California Form DE-542 (w/Examples) + FAQs
- How to Fill Out California Form DE-7 (w/Examples) + FAQs
- How to Fill Out California Form DE-9 (w/Examples) + FAQs
- How to Fill Out California Form DE-9C (w/Examples) + FAQs
- How to Fill Out California Form DE 3805 (w/Examples) + FAQs
- How to Fill Out California Form DE-678 (w/Examples) + FAQs