California - State Unemployment Insurance

In the state of California (CA), Justworks reports unemployment taxes under the Justworks unemployment account number. Customers operating in this state will be subject to the Justworks state unemployment insurance rate. If your business filed under your account for the prior quarter, you will need to suspend or close your unemployment account (also known as the Employment Development Department account). 

Closing CA Unemployment and Withholding Accounts:

Please follow the steps outlined below to close your CA Unemployment and Withholding accounts:

Transitioning from a PEO that treats CA as a Client-Reporting state:
If you are coming from a PEO that previously handled CA as a client-reporting state, you will need to close your unemployment account. You can close your account in one of two ways:

1. Through your online CA EDD portal
2. Complete the paper form DE 1

Under section A:

• Enter existing account #

• Mark "Close Employer" account and check "no longer have employees" and enter your last payroll date

• Skip down to Section T and sign/date

• Mail to the address at the bottom of the form

Transitioning from a PEO that treats CA as a PEO-Reporting state:
If you are coming from a PEO that previously handled CA as a PEO-reporting state, your unemployment account should already be closed and no further action is required.

Coming from a payroll provider
If you are coming from a payroll provider, your unemployment account will need to be closed. You can close your account in one of two ways:

1. Through your online CA EDD portal
2. Complete the paper form DE 1

Under section A:

• Enter existing account #

• Mark "Close Employer" account and check "no longer have employees" and enter your last payroll date

• Skip down to Section T and sign/date

• Mail to address at the bottom of the form

For new companies operating in the state of CA or hiring their first employee in CA:
If this is your first time operating in CA, you're all set. Newly formed companies in CA, or companies with a new remote hire in CA, do not need to take any action or file any forms.