How to Respond to California EDD Form DE 278

Form DE 278, the Request for Verification of Canceled Checks, is a document issued by the California Employment Development Department (EDD) to verify wages an employer has paid to a former employee. When an employer receives this form, it means the EDD requires specific payment details to resolve a question about a past employee’s earnings. The form is a formal request for evidence directly from the employer’s payroll records as part of a standard procedure to ensure the accuracy of wage records.

The Purpose of the EDD’s Request

An employer receives Form DE 278 when a former employee files a claim for unemployment insurance (UI) benefits. The request is triggered by a discrepancy between the wages reported by the claimant on their application and the wage information the EDD has from the employer’s payroll tax filings. This inconsistency must be resolved before the EDD can determine the claimant’s eligibility and calculate the correct weekly benefit amount.

The form serves as a direct method for the EDD to investigate this wage discrepancy. By requesting proof of payment, the department seeks to confirm the exact gross wages paid during specific calendar quarters. The information provided by the employer allows the EDD to either validate the claimant’s reported earnings or correct the official wage record to ensure benefits are paid correctly.

Required Information and Documentation

Before completing the form, an employer must gather several specific documents. The primary items needed are the DE 278 itself, the employee’s full name and Social Security Number, and the detailed payroll records for the base period specified in the EDD’s request. The base period typically covers the first four of the last five completed calendar quarters before the UI claim was filed. It is necessary to pull all relevant payroll journals, registers, or equivalent reports for this timeframe.

The primary component of the response is providing acceptable proof of payment. For employees paid by check, this means submitting clear photocopies of the front and back of each canceled check for the period in question. The back of the check is necessary as it shows the endorsement and the bank’s processing stamps, which confirms the check was cashed or deposited. If payment was made via direct deposit, the employer should provide copies of payroll reports or bank statements that clearly show the transaction details, including the employee’s name, payment date, and net amount deposited.

For other, less common payment methods, such as cash, the burden of proof is higher. An employer would need to provide signed receipts from the employee or a detailed payroll ledger that was contemporaneously maintained. The EDD requires verifiable evidence that the employee actually received the wages being claimed, as simply stating that wages were paid is insufficient.

Completing and Submitting the Form

With the necessary documentation gathered, the next step is to accurately fill out Form DE 278. The form has designated fields to enter specific details for each payment, such as the check number, the date the check was issued, and the gross amount of the payment. This information should be transcribed directly from payroll records, and each entry on the form should correspond to a piece of documentary evidence being submitted.

After filling in the wage information, an employer or an authorized representative must sign and date the form. This signature certifies that the information provided is true and correct. The response deadline is printed on the form, and adhering to this date is important. Missing the deadline can result in the EDD making a determination based only on the information provided by the claimant.

The completed and signed form, along with photocopies of all supporting documentation, must be mailed to the EDD address provided on the request. It is advisable to keep a copy of the entire submitted package for the company’s records and send it via a method that allows for tracking.

After You Respond to the EDD

Once the response is submitted, the EDD will review the form and the supporting documents. An EDD representative compares the evidence provided by the employer against the information reported by the former employee. This review will lead to a determination regarding the correct amount of wages to be used for the UI claim, and the EDD will issue a notice of this determination to both the claimant and the employer.

This determination can directly affect the employer’s UI reserve account. If the verified wages result in the claimant being awarded benefits, the employer’s account may be charged for its pro-rata share of those benefits. These charges can lead to an increase in the employer’s UI tax rate in subsequent years. The reserve account is a record of UI taxes paid in versus benefits charged against the account. A timely and thorough response is the best way to ensure the wage record is accurate.