CA form DE-9 for Q1 2026 getting rejected

Hi there, @mhpkap and @TreetopMike. When this issue arises for multiple clients in Q1 2026, it likely stems from an EDD validation problem tied to the Valid Range used to test your electronic DE-9 file.

Error Code 2.47 occurs because the EDD’s system detects a mathematical discrepancy, even as small as a few cents, between the Total Subject Wages and the DI Tax reported. For 2026, California has removed the taxable wage limit for SDI, meaning 100% of wages are subject to the tax. This change has made the EDD's valid range filters much stricter to catch any potential under-reporting.

The EDD often calculates tax ranges more precisely than standard two-decimal rounding. To resolve this, manually multiply your Total Subject Wages by the 2026 SDI Rate and if your reported tax differs by more than $0.02 due to paycheck rounding, it may trigger a rejection.

Additionally, verify if clients have Section 125 or HSA contributions. These are subject to California SDI even if they are Federal-exempt. If QuickBooks excluded them from Subject Wages, the EDD will reject the form as Outside of Range. You should also run a Tax Liability Report and check the SDI section for any adjustments. A mismatch occurs if an adjustment was made to a paycheck but not the liability. Finally, ensure no employees have negative wage adjustments, as the EDD system often rejects files using negative totals to offset the current quarter.

Identifying the specific Wage vs. Tax mismatch shifts your focus from a generic rejection to a targeted fix. Once you update Subject Wages to include all SDI-taxable items such as pre-tax health premiums and align the rounding, your resubmitted DE-9 will pass the EDD’s math filter and reach Accepted status immediately.

If you have other questions about the program, please don't hesitate to click the Reply button below.