EFT General Information
- Assessment Notices
- Emergencies
- Penalties and Interest Charges
- Waiver of Penalties
- Tax Due Dates
- Weekends and Holidays
- Tracing and EFT Payment
- Zero Amount Due
- Filing Tax Return
- Payment Voucher
Assessment Notices
Assessment notices are not part of the Electronic Funds Transfer Program. Do not make payments by EFT for invoices received from the California Department of Insurance for penalty assessments. These payments must be made by check, payable to the State Controller's Office.
Emergencies
If there is a problem with making payments using the ACH Debit method, contact the California Department of Insurance Tax Accounting/EFT Desk at (916) 492-3288 or e-mail at eft@insurance.ca.gov.
If you use the ACH Credit method, contact your financial institution.
Penalties and Interest Charges
Penalty and interest charges cannot be made through EFT. You will be billed separately by the California Department of Insurance.
Late Payment
If your payment is not timely, you will be assessed a ten percent penalty, plus interest on the amount due per California Revenue and Taxation Code, Section 12258, and California Insurance Code Section 1775.4(e) and 1775.5 (b).
Failure to Pay Taxes by EFT
If you are required to pay taxes through EFT, you must continue to participate in the EFT program unless the California Department of Insurance advises you in writing that you are no longer required to do so. If you do not pay taxes through EFT and use another method to pay (for example, if paid via Fedwire-without CDI's prior approval or payment by check), you will be assessed a ten percent penalty on the amount due per California Revenue and Taxation Code, Section 12602 (c)(1), and California Insurance Code, Section 1775.8(c)(1).
Waiver of Penalties
If you have received an assessment notice from the California Department of Insurance for the penalties listed below you may request to be relieved of the penalties if you believe the assessment is incorrect or if the non-compliance is due to a reasonable cause or circumstance.
Non-compliance of The Timeliness Requirement:
- Insurers: Pursuant to California Revenue and Taxation Code Section 12636, your request for waiver of penalties must be submitted in writing to the California Department of Tax and Fee Administration, Excise Tax Division, 450 N Street, MIC-56, Sacramento, CA 95814 and must contain a statement under penalty of perjury setting forth the facts upon which the claim for relief is based.
- Surplus Line Brokers: Pursuant to California Insurance Code Sections 1775.4 (e) and 1775.5 (b), your request for waiver of penalties must be submitted in writing to the California Department of Insurance, Premium Tax Audit Bureau, 300 South Spring Street, 13th Floor, Suite 13090, Los Angeles, CA 90013 and must contain a statement under penalty of perjury setting forth the facts upon which the claim for relief is based.
Non-compliance of The Required Payment Method:
- Insurers or Surplus Line Brokers: Pursuant to California Revenue and Taxation Code Section 12602 (c)(2) and California Insurance Code Sections 1775.8 (c)(2), your request for waiver of penalties must be submitted in writing to the California Department of Insurance, Premium Tax Audit Unit, 300 South Spring Street, 13th Floor, Suite 13090, Los Angeles, CA 90013 and must contain a statement under penalty of perjury setting forth the facts upon which the claim for relief is based.
There is no provision in the California Insurance Code or California Revenue and Taxation Code that permits the California Department of Insurance to waive interest assessments.
Tax Due Dates
Under EFT reporting, a payment is considered to be timely if the transferred funds settle into the California Department of Insurance's bank account by the first banking day following the tax due date.
You will need to determine the date when you initiate your payment so that it will settle in CDI's bank account on time. When you should call to report your payment will depend on the payment method you have selected.
ACH Debit and ACH Credit taxpayers are reminded to check with your financial institution regarding its requirements for timely payments. Some financial institutions require a twenty-four hour lead time.
Tax Due Dates for Insurers that Pay on an Annual and Quarterly Basis:
| Reporting Period | Tax Due Date* |
|---|---|
| Annual Payment and Retaliatory Tax | April 1 |
| 1st Quarter Payment | April 1 |
| 2nd Quarter Payment | June 1 |
| 3rd Quarter Payment | September 1 |
| 4th Quarter Payment | December 1 |
| Ocean Marine Tax | June 15 |
Tax Due Dates for Surplus Line Brokers that Pay on a Monthly and Annual Basis:
| January | April 1 |
| February | May 1 |
| March | June 1 |
| April | July 1 |
| May | August 1 |
| June | September 1 |
| July | October 1 |
| August | November 1 |
| September | December 1 |
| October | January 1 |
| November | February 1 |
| Annual Payment (including December) |
March 1 |
* See "Weekends and Holidays" section for more information.
Weekends and Holidays
If your tax due date falls on a weekend or holiday (national or state), your tax payment must settle into the California Department of Insurance's bank account by the first banking day following the tax due date.
When making your payment, you must indicate the reporting period. Refer to the "Tax Due Dates" section for more information.
The following holidays are recognized by the State of California:
- News Year's Day
- Martin Luther King Jr. Day
- Lincoln's Birthday*
- President's Day
- Cesar Chavez Day *
- Memorial Day
- Independence Day
- Labor Day
- Columbus Day
- Veteran's Day
- Thanksgiving Day
- Day after Thanksgiving *
- Christmas Day
*All holidays above are recognized by the U.S. Federal Reserve System except Lincoln's birthday, Cesar Chavez Day, and the day after Thanksgiving.
All ACH Credit taxpayers should check with their financial institution regarding its schedule for processing a transfer.
Tracing An EFT Payment
On occasion it may be necessary to trace a tax payment to establish that the payment was reported to the State's data collection service, (ACH Debit) or was originated by a financial institution (ACH Credit).
If you are using the ACH Debit method, the State's data collection service will provide you with a reference number. The reference number will indicate the date you reported your payment. This number will also enable CDI's bank to trace your transaction.
If you are using the ACH Credit method, you will be responsible for obtaining the necessary information to trace the transaction. Contact your financial institution for documents showing the actual transfer of funds.
Zero Amount Due
If you have agreed to make your tax payments through EFT, all tax payments must be by EFT and your tax return must be filed timely. If you have no tax payment to report, you do not need to report a "zero" payment through EFT, however you must file your payment voucher and tax return on a timely basis.
Filing Tax Return
Whether you choose the ACH Debit or ACH Credit method of tax payment, you must continue to file your tax return on a timely basis. The reporting due dates and filing requirements have not changed.
Payment Voucher
If you are a mandatory or voluntary EFT participant, the following rules apply in regards to the payment voucher:
- Insurers are required to submit the payment voucher on a quarterly basis, regardless of the method, or the amount of payment (including zero amount due).
- Surplus line brokers are required to mail the payment voucher on a monthly basis, regardless of the method, or the amount of payment (including zero amount due).
Submission of the payment voucher does not relieve you of making your monthly or quarterly tax payments through EFT on a timely basis in accordance with the due dates established.
| Payment Vouchers | Available in Excel 2000 Format |
|---|---|
| Premium Tax Voucher for the 1st Quarter Prepayment Form CIA T-4 |
Voucher |
| Premium Tax Voucher for the Quarterly Prepayments Form CIA T-4A |
Voucher |
| Surplus Line Broker's Monthly Tax Payment Voucher Form FS-007 |
SLB Voucher |
