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Assign or update California wage plan codes for state payroll reporting

by Intuit•1680• Updated 3 weeks ago

California requires employers to assign wage plan codes to each employee for state payroll reporting. The code indicates the type of coverage an employee has and correlates with your State Employer Account Number (SEAN). You can enter or update these codes in QuickBooks Online Payroll and QuickBooks Desktop Payroll.


Determine the correct wage plan code

Review the table below to identify the appropriate wage plan code for your employee, based on benefit coverage and account type.

Wage Plan CodeEmployee Benefit Coverage and Use of Wage Plan Code
AYour employee’s total subject wages can only be used for UI benefit purposes. 

Used on accounts not covered by State Disability Insurance (SDI) or Voluntary Plan for Disability Insurance (VPDI)
JYour employee’s total subject wages can only be used for SDI benefit purposes. 

Used on accounts not covered by the State UI plan. 
LYour employee’s total subject wages can only be used for VPDI benefit purposes. 

Used on VPDI accounts not covered by the State UI plan.
PYour employee wages and/or withholdings are reported under an account that is only subject for PIT withholding purposes. 
RYour employee’s total subject wages can only be used for UI benefit purposes.

This wage plan code is only valid for employees with one of the following DI exclusions when reported on an account subject to UI and SDI or VPDI: 

• Sole Shareholders who have filed a Sole Shareholder/Corporate Officer Exclusion Statement, DE 459, and have been approved for a DI exclusion under Section 637.1 of the California Unemployment Insurance Code (CUIC). 
• Third-Party Sick Pay recipients who claim an exclusion under Section 931.5 of the CUIC. 
• Religious employees who have filed a Religious Exemption Certificate, DE 5067, and have been approved for a Religious DI exclusion under Section 2902 of the CUIC. 
SYour employee’s total subject wages can be used for SDI and UI benefit purposes. 

Note: S can also be used for employees who are only subject to PIT and are being reported under an account that is subject to UI and SDI.
UYour employee’s total subject wages can be used for VPDI and UI benefit purposes. 

Used on VPDI accounts covered by a State UI plan.

For more details on how accounts and wage plan codes link, refer to the EDD Publication. If you are unsure which code to use, contact the Taxpayer Assistance Center.


QuickBooks Online Payroll

QuickBooks automatically assigns CA SDI wage codes based on the first digit of your CA account number:

  • Starts with 9: Assigned code J.
  • Starts with 8: Assigned code P.
  • All other numbers: Assigned code S.

Update wage plan codes

If you need to change the automatically assigned code:

  1. Go to Payroll, then select Employees.
  2. Select your employee.
  3. From Tax Withholdings, select Start or Edit.
  4. Under the CA wage plan code section, choose the appropriate wage plan code.
  5. Select Save.

QuickBooks Desktop Payroll

You may receive a warning that employees are missing tax info when running payroll. If your employees are in California, they may be missing the wage plan code.

Assign wage plan codes

Note: You must enter a wage code for all employees, even if they are inactive.

  1. Go to Employees, then select Payroll Setup.
  2. In the Payroll Setup window, select Employees, then Continue.
  3. Select your employee.
  4. In the Action dropdown, select Edit.
  5. Select Next until you reach the Tax details window.
  6. In the State W-4 details section, select Additional state taxes.
  7. Select the appropriate Wage Plan Code.
  8. Select Next, then select Done.
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