Which state agency issues an employer's ID number?

Which state agency issues an employer's ID number?

• A. Board of Equalization
• B. Department of Labor
• C. Employment Development Department
• D. Franchise Tax Board

Answer: (C)

In California, the agency that assigns the employer’s state payroll tax ID is the Employment Development Department. When you register to hire employees, the EDD sets up your payroll tax accounts (unemployment insurance, disability insurance, etc.) and gives you an account number used for state wage reporting and tax filings. This is separate from the federal Employer Identification Number issued by the IRS. The other agencies handle different taxes—sales and use tax for the Board of Equalization, and personal or corporate income taxes for the Franchise Tax Board—so they don’t issue the employer’s payroll tax ID.

In California, the agency that assigns the employer’s state payroll tax ID is the Employment Development Department. When you register to hire employees, the EDD sets up your payroll tax accounts (unemployment insurance, disability insurance, etc.) and gives you an account number used for state wage reporting and tax filings. This is separate from the federal Employer Identification Number issued by the IRS. The other agencies handle different taxes—sales and use tax for the Board of Equalization, and personal or corporate income taxes for the Franchise Tax Board—so they don’t issue the employer’s payroll tax ID.