What is SB 422?
SB 422 is a new law in California that clarifies and applies certain requirements related to loan-out companies. Pursuant to SB 422, and in addition to other information that is currently collected, we are collecting the California EAN (Employer Account Number) and loan-out company phone number.
The obligation for California businesses to register with the EDD and receive a California EAN already exists; the collection of the EAN and other additional information by the payroll company is now required under SB 422.
What is the California EAN?
The California EAN is a unique identifier assigned to businesses for tax purposes in California.
What is the difference between an EAN and an EIN?
The California EAN is a state tax ID used for California state tax purposes. The Federal EIN is issued by the IRS for Federal tax purposes.
How do I obtain a California EAN?
An employer can register online in order to receive an EAN at the EDD e-Services for Business website at https://edd.ca.gov/en/Payroll_Taxes/e-Services_for_Business
How do I know if my loan-out is required to register for a California EAN? What if I don’t live or work in California?
Please seek guidance from your tax and legal advisors regarding any employer obligations as a loan-out company.