Form DE 938 at a glance
What it is: The Voluntary Plan for Disability Insurance Quarterly Adjustment Form (DE 938) is used to request corrections to a previously reported Quarterly Contribution Return (DE 3D) and/or Return and Report of Wages (DE 9C).[2]
Who signs: The employer or an authorized individual must sign and print their name in section V and should include their title, current contact phone number, email address, and the date signed.[2]
A filled-in Form DE 938 example: a bakery adds unreported wages
How to fill out Form DE 938, box by box
Check the box that applies
Mark the box that indicates the forms that you are correcting on the DE 938.
If only adjusting the DE 3D, complete Sections I, II, III, and V.
If only adjusting the DE 9C, complete Sections I, II, IV, and V.
If adjusting DE 3D and DE 9C, complete all sections.[2]
Section I: Employer Information
Enter the business name, address, quarter (two digits for the year and one digit for the quarter), and eight-digit employer payroll tax account number that needs to be adjusted.
In Section I, Employer Information, complete all fields (Please print).[2]
Section II: Reason for Adjustment
Enter a detailed reason for the adjustment that is being requested.
A reason must be provided for all adjustments requested.[2]
Section III: Request to Adjust the DE 3D, lines A to J
Complete section III of the DE 938 if you need to adjust the amounts previously reported on your DE 3D or most recent adjustment form.
If a correction is also needed to the DE 9C, then also complete section IV.
Column 1: Enter the amounts previously reported on your DE 3D or your most recent adjustment form in the appropriate fields for lines A through I.
The adjustment form will be returned to you if these amounts do not match the amounts previously reported to the EDD or if the DE 3D has not been filed for the quarter.
Column 2: Enter the total amounts that you should have reported for the quarter for all employees in the appropriate fields for lines A through I.
Column 3: Calculate the difference between the amounts reported in each field in column 1 and column 2 and enter the amounts in the respective fields in column 3.
If the difference is zero, leave the field in column 3 blank or enter 0.00.
Line J, Subtotal: Add the amounts for lines E, F, G, H, and I and enter the total in the appropriate field on line J.[2]
Lines K to P: taxes due or overpaid, penalty and interest
Line M, Total Taxes Due or Overpaid: Add the Subtotal (line J, column 2), plus Erroneous SDI Deductions Not Refunded (line K), minus Contributions and Withholdings Paid for the Quarter (line L).
Line K, Erroneous SDI Deductions Not Refunded: Enter any erroneous SDI deductions that have not been refunded to your employees.
Line L, Contributions and Withholdings Paid: Enter the total contributions and withholdings previously paid to the EDD for the quarter.
Do not include penalty and interest amounts.
Line N, Penalty: If a balance is due for the quarter, the penalty amount is 15% of the amount on line M (penalty is 10% for periods prior to 3rd quarter 2014).
Line O, Interest: If a balance is due for the quarter, calculate the interest due on the total of the amount on line M plus line N.
Line P, Total Due: Add the Total Taxes Due (line M) plus Penalty (line N) and Interest (line O) and pay the total due.[2]
Line Q, SDI and PIT Overpayments
Line Q, SDI and PIT Overpayments: If you are requesting a credit adjustment (decreasing the amounts previously reported) for SDI or PIT, you must answer the questions on line Q for SDI and/or PIT.[2]
Section IV, Item A: DE 9C Grand Totals for the Quarter
Item A, DE 9C Grand Totals for the Quarter: Complete items A1-A3 for all DE 9C adjustments to report the correct grand totals for the quarter.
Item A1: Enter the correct Grand Total Subject Wages, PIT Wages, and PIT Withheld for all employees for the quarter.
If only correcting the grand totals previously reported on your DE 9C for the quarter, do not complete item C.
Item A2: Enter the correct total number of employees, full-time and part-time, who worked during or received pay subject to UI for the pay period that includes the 12th day of the calendar month.
Item A3: Enter the correct total number of wage lines reported for the quarter. Do not include employees with no wages or withholdings.[2]
Section IV, Item B: Wage Plan Code Corrections for All Employees
Item B, Wage Plan Code Corrections for All Employees: Complete item B only when you are requesting a correction to the wage plan code for all employees.
Provide the number of employees with the incorrect wage plan codes, the wage plan code previously reported for the employees, and the correct wage plan code in the spaces provided in item B.
Do not complete item C if no other corrections are needed to the employee wage lines.[2]
Section IV, Item C: Individual Wage Line Adjustments
Item C, Individual Wage Line Adjustments: Enter the information that should have been reported for each employee in fields C1-C6.
Identify the adjustment type for each affected employee and complete the fields indicated.
Include only the wage lines that need to be corrected. Make corrections to the quarter(s) in which the information was originally reported. Do not report negative amounts.
Add employee(s) not previously reported: C1 - C6. Leave C7 - C9 blank.
Remove employee(s) reported in error: C1 - C6. Enter 0.00 in C3 - C5.
Adjust wages or PIT amounts previously reported: C1 - C6. Leave C7 - C9 blank.
Correct employee name(s): C1 - C6 and C7. Leave C8 - C9 blank.
Correct a Social Security number (SSN): C1 - C6 and C8. Leave C7 and C9 blank.
Correct wage plan code for one or more employees but not all: C1 - C6 and C9. Leave C7 and C8 blank.
Multiple adjustments: C1 - C6 and C7 - C9 if they apply to adjustment.
Enter the information that should have been reported in fields C1 - C6. If a correction reduces wages or withholdings amount to zero, enter 0.00 in the field.
For name, SSN, or plan code corrections, enter the information previously reported in fields C7 - C9. Leave these fields blank for all other adjustment types.
Please attach additional pages if reporting more than 3 wage line adjustments.[2]
Section V: Declaration
Section V, Declaration: "I declare that the information herein is true and correct to the best of my knowledge."
Adjustment requests will not be processed without a signature.[2]
The DE 3D, DE 9C, amounts and funds
You have not filed the DE 3D or DE 9C for the quarter
The EDD cannot process adjustment forms if you have not filed the DE 3D and/or DE 9C for the quarter.[2]
Amounts were reported incorrectly
If amounts were reported incorrectly, complete the adjustment form(s) for the quarter(s) in which the information was reported incorrectly.
Complete one DE 938 per quarter.
DE 938 forms submitted with annual amounts will not be processed.[2]
Allocated the wrong amounts to specific funds on a DE 88
Do not adjust. The EDD will make the necessary adjustments at the end of the quarter when you file your DE 3D.[2]
Common questions about Form DE 938
Can I fill out my EDD online?
You can also file adjustments to previously filed returns online through the Employment Development Department (EDD) e-Services for Business.[2]
Is there a deadline?
Statute of Limitations: A claim for refund must be filed within 3 years of the last timely date of the quarter being adjusted, 6 months after an assessment becomes final, or 60 days from the date of the overpayment, whichever date occurs later.[2]
Sources
[1] Form DE 938 (1-23), Voluntary Plan for Disability Insurance Quarterly Adjustment Form, Employment Development Department (the Official source link on this page).