CA form DE-9 for Q1 2026 getting rejected

Im also having this problem.  Rate is correct, Payroll total is correct.  Please advise.

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.

"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."

My Total Subject Wages are 13200.61. The SDI rate is 1.3%.

$13200.61 x 1.3% = 171.60793.

QB is rounding that to 171.61 in the form. Is it getting rejected by the EDD because the EDD is not rounding and is looking for a value of $171.60?

Unfortunately, QB does not allow us to override the calculated SDI amount. 

The total subject wages is correct to the penny. How can this be fixed so that it can be accepted by the EDD?

To add to my previous reply, I’ve noticed that the rejections are occurring in cases where QuickBooks is rounding up. For other clients where no rounding is applied, the forms are being accepted without issue.

Hello there, mhpkap. The best next step is to contact our live support team through the Help menu in your QuickBooks Desktop account. They can screen share with you, review your payroll setup, and help ensure everything is aligned for a successful filing.

You can revisit this thread if you have follow-up questions.

The "rounding up" issue could very well be the cause of my rejected return as well, as that was the case.  

FYI...I was on the phone with them for a few hours trying to get a resolution. It has been escalated to tier 3 support and they will be giving me a call back tomorrow. So far the solutions have been workarounds and not really addressing the root cause of the problem. I don't feel comfortable modifying the wage base or calculated amounts and submitting false records to the EDD. 

Thank you very much for the information. Please keep us updated.  

I never received a call back, but it looks like the problem is fixed. I am able to successfully submit the returns without making any adjustments.