When The California Employment Development Department, EDD did a site sweep, Ryan Brown found himself facing an audit. As he did research on his own as to what the ramifications of an EDD audit might be, he saw steep fines, jail time and high conviction rates reported time and time… [Read more]
EDD confirms it has resumed tax audits
CA EDD confirms it has resumed tax audits relating to the misclassification of 10 million contractors. Until September 2nd, 2020, CA EDD auditors had put audit cases on hold in order to assist the agency with the unemployment insurance benefits process. With the onset of the COVID-19 layoffs and the… [Read more]
What to do if You Get Audited by EDD
Being audited by EDD can happen to anyone. It can be challenging to take a step back and see the audit process from an objective point of view, but maintaining your focus is essential to coming out ahead in the end. In this article, we discuss tips to simplify the… [Read more]
2020 Tax Filing & the SBA PPP Loan
If your business received SBA PPP loan funds here’s what you need to know to prepare for your 2020 taxes. As with all elements of the forgivable loan, there are steps you should take right now to ensure forgiveness and compliance. In the video below we’ve outlined several scenarios to… [Read more]
Commentary on NY Times Article, “California Sues Uber and Lyft, Claiming Workers Are Misclassified”
California Sues Uber and Lyft, Claiming Workers Are Misclassified. In January, 2020 Assembly Bill AB-5 went into effect redefining the criteria for a 1099 contract worker as opposed to a W-2 employee. The bill was aimed at the employers who drive the Gig Economy and in the subsequent months, Uber,… [Read more]
What is an EDD Benefit Audit?
If you’re a business based in California, you’ve likely had dealings with the Employment Development Department (EDD). It is the responsibility of the EDD to collect payroll taxes and it conducts payroll tax audits of companies and businesses. In addition, the EDD conducts what’s called Unemployment Insurance (UI) benefit audits…. [Read more]
Is IRS Still Auditing? [video]
If you are currently being audited by IRS or EDD, be certain that you get a delay or postponement in writing. IRS and EDD are still auditing. The outbreak is not stopping work at CA EDD or IRS. Despite the chaos caused by the recent outbreak of coronavirus COVID-19, both… [Read more]
Will AB-5 Withstand Coronavirus?
As we look forward from April into the second quarter of 2020 the question on many business owner’s minds is: will the rules outlined in AB-5 stand in the face of coronavirus? At the start of 2020, business owners’ level of concern about California EDD’s newfound power to audit businesses… [Read more]
The Coronavirus Impact on Tax Law
The full scope of the coronavirus impact on tax law (and all other areas of business in the US and around the globe) has yet to be determined, but we can already see some of its major effects on tax laws in the United States. Just a few months after… [Read more]
Unemployment Claims Spike: So May EDD Audits
Unemployment claims are in the millions as a result of the coronavirus epidemic and the ensuing quarantine and lockdown. Small businesses are being deeply impacted by the downturn and many are having to lay off over half their workforce. Since the start of the outbreak, 3.2M people have filed for… [Read more]
