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The DE 24 form is an essential document used by businesses in California to report changes regarding their employer account information to the Employment Development Department (EDD). This form serves multiple purposes, including addressing changes in business ownership, corporate structure, or personal information of business owners. Whether you've changed your business address, name, or are altering key personnel within your organization, the DE 24 provides a standardized way to communicate these updates. Specific sections of the form allow you to indicate the type of change—like an address correction or a change in the business name—and require the dates of these modifications for proper record-keeping. Furthermore, businesses that have undergone transitions like a partial sale or a complete change in ownership must provide detailed information about the new entity or owners. Tax identification numbers are also a critical component of this form, ensuring accurate reporting and accountability for tax purposes. Additionally, if you’ve ceased operations or are no longer paying wages, there's space to indicate this change, keeping your account current and compliant. Completing the DE 24 form correctly is vital, as it helps maintain your business’s good standing with the EDD and avoids potential issues down the line.
De 24 Example
CHANGE OF EMPLOYER ACCOUNT INFORMATION
Mail to: Employment Development Department Account Services Group, MIC 28 P.O. Box 826880
Sacramento, CA
EDD ACCOUNT NUMBER:
Corporation/
Owner’s Name:
Business
Name (DBA):
Banking Institution:
PLEASE INDICATE CHANGES/CORRECTIONS THAT APPLY TO YOUR BUSINESS
A. Address Change/Correction: Date of Change: / / |
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(Enter address information in box 1) |
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NUMBER AND STREET |
CITY, STATE, AND ZIP CODE |
PHONE NUMBER |
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B. |
Business Name (DBA) Change: |
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Date of Change: |
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Corporation Name Change: |
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Date of Change: |
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D. |
Personal Name Change (i.e., marriage): |
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Date of Change: |
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E. |
Change of Ownership - Date of Change: / / |
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(Mark appropriate box below, and complete box 2 if |
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required): |
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Partial Sale, Not
Corporation Dissolved
Corporation Formed
Purchase Price $
Entire Business Sold (Enter successor[s] information in box 2)
Other (Explain):
Change in Ownership Type (Add information in box 2 and explain Type)
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OWNER’S NAME(S) FOLLOWING |
TITLE |
BUSINESS NAME (DBA)/ |
MAILING |
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CHANGE OF OWNERSHIP |
CORPORATION NAME |
ADDRESS |
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New FEIN (Tax ID#): |
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OLD FEIN (Tax ID#): |
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SOS Corporation, |
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Explain reason for new Tax ID: |
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LLC, LLP, or LP |
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Identification #: |
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F. Change in Partner(s), Officer(s), Member(s), Manager(s), etc. (Mark appropriate box to Add [A], Change [C], or
Delete [D], and enter the new information as required.) Attach additional sheet(s) if needed.
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DATE OF |
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INDIVIDUAL(S) TO BE ADDED/ |
TITLE |
SOCIAL SECURITY |
DRIVER’S |
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CHANGE |
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CHANGED/DELETED |
NUMBER |
LICENSE NUMBER |
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G.No wages paid during entire quarter(s). Please enter the appropriate year and quarter in the boxes provided. (Example: YYYY/Q)
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H. Discontinued Paying Wages. Date last wage payment was made: / / |
. All required EDD TAX FORMS |
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have been filed. (Attach Copies) |
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I.If you currently use a Professional Employer Organization (PEO), please provide PEO information: PEO Name:
PEO Address:
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PEO EDD Account Number: |
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PEO Start Date: |
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DE 24 Rev. 6 |
Page 1 of 2 |
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CU |
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J. Out of Business (Without a Successor) on: / / |
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. (Provide forwarding address in box |
Note: If business corporation/owner is represented by an authorized agent for employment tax purposes, the agent may sign below. A signed and properly executed power of attorney must be attached or on file. THE SIGNATURE OF ANY OTHER PERSON/THIRD PARTY WILL NOT BE ACCEPTED.
“I certify under penalty of perjury that the above information is true and correct, and that these actions are not being taken to receive a more favorable Unemployment Insurance rate. I further certify that I have the authority to sign on behalf of the above business.”
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Signature |
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Date |
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Print Name |
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Title (Officer, Owner, Member, GP, or Authorized Agent) |
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DE 24 Rev. 6 |
Page 2 of 2 |
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File Breakdown
| Fact Name | Description |
|---|---|
| Form Purpose | The DE 24 form is used for changing employer account information with the Employment Development Department (EDD) in California. |
| Mailing Address | Completed forms should be mailed to: Employment Development Department, Account Services Group, MIC 28, P.O. Box 826880, Sacramento, CA 94280-0001. |
| Signatory Requirements | The form must be signed by an authorized representative of the business, confirming that the information provided is accurate and complete. |
| Governing Law | This form is governed by California state law regarding employer tax obligations and account management. |
Guide to Using De 24
Once you have gathered the necessary information and documentation, you can proceed to fill out the DE 24 form. This form is essential for updating employer account information with the Employment Development Department. Be thorough and precise as you fill in the details to ensure that your changes are correctly processed.
- Begin by mailing the form to: Employment Development Department, Account Services Group, MIC 28, P.O. Box 826880, Sacramento, CA 94280-0001.
- Locate the EDD ACCOUNT NUMBER section at the top of the form and enter your designated account number.
- In the CORPORATION/OWNER'S NAME section, fill in the name under which your business operates.
- Proceed to the BUSINESS NAME (DBA) section and provide the name you use for business operations.
- Identify the BANKING INSTITUTION that deals with your business transactions.
- Next, indicate any changes or corrections that apply to your business by choosing from the list below:
- A. Address Change/Correction: Fill in the date of the change and provide the complete address in box 1, including the city, state, and zip code.
- B. Business Name Change: Enter the date of change.
- C. Corporation Name Change: Specify the date of change.
- D. Personal Name Change: Indicate the date of change.
- E. Change of Ownership: Mark the appropriate box and include the date of change; complete box 2 as required.
- F. Change in Partner(s), Officer(s), etc.: Mark if you are adding, changing, or deleting individuals and provide new information as needed.
- G. Provide information if no wages were paid during the entire quarter.
- H. If you discontinued paying wages, enter the date of the last wage payment and ensure that all required EDD tax forms have been filed.
- I. If applicable, fill in your Professional Employer Organization (PEO) details.
- J. If your business is out of operation, include the date and provide a forwarding address in box A-1.
- Finally, if you have an authorized agent representing your business, they must sign and submit a power of attorney. Otherwise, only the business owner or authorized individual can sign.
After completing these steps, review the form for any errors or omissions. Accurate documentation is key. Once satisfied, send it to the address provided to update your records effectively.
Get Answers on De 24
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What is the purpose of the DE 24 form?
The DE 24 form is used to notify the Employment Development Department (EDD) of any changes or corrections to employer account information. This includes alterations to the business name, address, ownership structure, and various other pertinent details related to the business entity.
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Who should fill out the DE 24 form?
The form should be filled out by business owners, corporate officers, or designated representatives authorized to make changes to the business’s employment tax account. It is critical that the person completing the form has the required authority to do so.
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How do I submit the DE 24 form?
The completed DE 24 form should be mailed to the Employment Development Department’s Account Services Group at the following address:
Employment Development Department
Account Services Group, MIC 28
P.O. Box 826880
Sacramento, CA 94280-0001 -
What changes can be reported using the DE 24 form?
The form allows businesses to report several types of changes, including but not limited to:
- Address changes
- Business name (DBA) changes
- Corporation name changes
- Changes in ownership
- Changes in key personnel, such as partners or officers
- Discontinuation of wage payments
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What do I do if my business is out of operation?
If your business is out of operation, the DE 24 form can be used to indicate this status. You must provide the date that the business ceased operations and, if applicable, a forwarding address for any future correspondence.
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Is there a fee associated with submitting the DE 24 form?
No, there is no fee for submitting the DE 24 form to the Employment Development Department. The process of updating account information is a necessary compliance measure for maintaining your business's employment tax account.
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What should I include if there is a change in ownership?
When reporting a change in ownership, you must complete the relevant sections on the DE 24 form, including the nature of the ownership change (e.g., sale of the business, formation of a new corporation). Additionally, you’ll need to provide details about the new owners, including their names and titles.
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Can I submit the DE 24 form electronically?
Currently, the DE 24 form must be submitted via mail. However, businesses are encouraged to utilize the EDD e-Services for Business for managing payroll tax accounts, including filing reports and making updates. Visit the EDD website for more information.
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What happens if I provide false information on the DE 24 form?
Providing false information on the DE 24 form can lead to severe consequences, including penalties and legal repercussions. Individuals signing the form certify that the information is true and correct under penalty of perjury. It is essential to ensure accuracy when completing and submitting this form.
Common mistakes
Completing the DE 24 form correctly is crucial for maintaining accurate employer account information with the Employment Development Department (EDD). Yet, many people make common mistakes that can lead to delays or complications. Here are seven frequent errors to avoid when filling out the form.
One of the most significant mistakes is failing to provide a current and correct address. This information is essential for the EDD to reach you with necessary correspondence. Double-check that the address entered in Box A-1 aligns with postal standards. An incorrect address can lead to missed communications and potential issues with your account.
Another common error is neglecting to indicate the specific date of change. Each change must have a corresponding date, as this is crucial for keeping accurate records. Ensure that the dates filled in for address changes, name changes, and ownership changes are clear and up-to-date.
People often overlook the requirement to include a signature. The form must be signed by an authorized individual, such as an officer or owner of the business. If the signature is missing, the EDD will not process the form. Before submitting, check that a valid signature has been provided, along with the printed name and title of the signer.
A frequent oversight involves entering incomplete or incorrect information in Box 2, particularly during a change of ownership. It's essential to fill out all required fields accurately. Missing or incorrect data can delay processing or halt the update altogether.
Some individuals incorrectly assume that they can submit the DE 24 form without including related EDD tax forms if applicable. All required forms must be filed and attached to the DE 24 to ensure compliance. This includes providing past wage information or indicating if wages were not paid during a specific period.
Another mistake is providing outdated or incorrect tax identification numbers for businesses. If there has been a change in the Employer Identification Number (EIN), the correct new number should be highlighted on the form. Failure to do so can cause confusion and lead to further issues with tax accounts.
Lastly, some people forget to check if they are using a Professional Employer Organization (PEO). If applicable, it's vital to provide accurate PEO details, including the name, address, and EDD account number. Omitting this information could complicate the processing of your account changes.
Avoiding these common pitfalls can streamline the process of updating your employment account information. Take your time, review each section, and ensure accuracy to prevent unnecessary delays.
Documents used along the form
When dealing with the De 24 form, which is primarily used for changing employer account information with the Employment Development Department (EDD) in California, there are several other important forms and documents that may also be needed. Each of these documents serves a unique purpose in managing a business's employment-related obligations and ensuring compliance with state regulations. Below is a list of these additional forms and documents.
- DE 9 (Quarterly Contribution Return and Report of Wages): This form is used to report wages paid to employees and calculate unemployment insurance contributions owed to the EDD. It's submitted quarterly and is crucial for maintaining accurate payroll records.
- DE 9C (Quarterly Contribution Return and Report of Wages - Continuation): This form is an extension of the DE 9, providing detailed wage information for each employee. It supports the data provided in the DE 9 and is also filed quarterly.
- DE 4 (Employee's Withholding Allowance Certificate): Employees complete this form to determine the amount of state income tax to withhold from their paychecks. Employers must keep this form on file for each employee to ensure compliance.
- SOI (Statement of Information): This document is filed with the Secretary of State and provides updated information about a corporation or limited liability company (LLC). Changes in ownership, addresses, and key personnel should be reported here.
- Power of Attorney (POA): This document allows a designated representative to act on behalf of the business for matters related to employment taxes. It is necessary if someone other than the business owner will be signing tax documents.
Understanding the forms associated with the De 24 is vital for ensuring that your business remains compliant with employment regulations. Each of these documents plays a key role in the functioning and reporting obligations of a business, contributing to smooth operations and minimizing potential legal issues.
Similar forms
- Form 940: This form is used for reporting annual federal unemployment taxes. Similar to the DE 24 form, it involves changes in account information and can impact unemployment insurance rates.
- Form 941: This quarterly form is for reporting payroll taxes withheld from employee wages. Like the DE 24, it requires accurate reporting to maintain compliance with tax obligations.
- Form W-2: This document reports wages and taxes withheld for employees. Both forms capture essential employer information and ensure accurate wage reporting to relevant authorities.
- LLC Articles of Organization: This document establishes a limited liability company and requires accurate business information, mirroring the DE 24 process of updating company changes.
- Form SS-4: Used to apply for an Employer Identification Number (EIN). The DE 24 also necessitates updating tax ID information, highlighting the importance of maintaining accurate records.
- State Business Registration Form: Similar to the DE 24, this form registers a business in the state and may require changes to business structure or ownership.
Dos and Don'ts
When filling out the DE 24 form, careful attention to detail is crucial. Here are some important guidelines to follow and avoid:
- Do ensure that all the information is accurate and current.
- Don't leave any sections blank; every field must be addressed.
- Do check for any required attachments, such as proof of name change or a power of attorney.
- Don't use vague explanations; provide clear and specific details if you select “Other”.
- Do sign the form yourself or ensure that an authorized agent is designated.
- Don't submit the form without keeping a copy for your records.
- Do double-check the mailing address before sending the form to avoid delays.
Misconceptions
- The DE 24 form is only for larger businesses. This is not true. Any business, regardless of size, can use the DE 24 form to update important information with the Employment Development Department.
- Only a business owner can fill out the DE 24 form. While the business owner often completes this form, an authorized agent can also submit it on behalf of the business, as long as they have the proper authorization.
- Changes submitted won't take effect right away. In reality, the changes made on the DE 24 form are typically processed in a timely manner. However, it’s always a good idea to allow some time for processing.
- I don’t need to file the DE 24 form if I am going out of business. This is a misconception. If your business is closing, you still need to submit the DE 24 form to officially document that your business is out of operation.
- The DE 24 form can be submitted without any documentation. This is incorrect. Depending on the changes you are making, you may need to attach relevant documentation, such as marriage certificates for name changes or proof of ownership change.
- Updating information is not important. On the contrary, keeping your business’s information up-to-date with the Employment Development Department is crucial. It ensures that you remain compliant with tax requirements and that you receive important communications.
Key takeaways
- Ensure accurate information: Double-check all fields on the DE 24 form, including names, addresses, and dates of change. Incorrect information can lead to administrative issues.
- File in a timely manner: Submit the DE 24 form promptly after any change occurs. Delays in reporting changes can affect your business’s tax obligations and compliance status.
- Include necessary documentation: Attach any required documents, such as proof of ownership changes or tax identification numbers. This ensures the Employment Development Department can process your application smoothly.
- Use e-Services for convenience: Take advantage of the online platform for managing your payroll tax account. This can simplify the filing of reports, making updates, and accessing resources.