In the face of a perceived increase in the number of independent contractors, the California Employment Development Department (EDD) has begun a campaign of stricter enforcement of employment tax laws. With EDD conducting more audits of California business’ employment records, business owners and their bookkeepers should be prepared for the… [Read more]
The Dynamex Case, EDD and What the New Rules Mean for Your Independant Contractors
The California Supreme Court recently heard a case that is changing the rules on the classification of Independant Contractors in the state of California. Previously, there were 13 factors that EDD would look at in assessing whether a worker was a contractor or an employee. In October of 2018 that… [Read more]
Large Cash Transactions: Your Reporting Responsibilities and Penalties for Failing To File
Businesses who are paid in cash have a responsibility to report payments over $10,000 to IRS using form 8300. Form 8300 is similar in function to a 1099 in that services paid for from one business to another usually generate a 1099, submitted by the company who received the work… [Read more]
Risks of Misclassifying Independent Contractors and Employees
Is the person you just hired a 1099 contractor or an employee? Making a false assumption could be costly. In California, there is a fine line separating these two categories of workers and significant penalties for misclassification. Here are some of the consequences you might have to face for mislabeling… [Read more]
California EDD: 1099 Contractors vs Employees How to tell the difference
The primary goal of the California Employment Development Department is to investigate companies whose employees are potentially mis-classified as contractors when they should be classified as employees. When determining whether your workers should be classified as employees or 1099 contractors take the example of the pLumbing Company who hires additional… [Read more]
5 Mistakes Businesses Can Make When Hiring and Working With Independent Contractors
You hire independent contractors to help you with specialized or contract work. But if you find yourself engaging in what may be considered an employer-employee relationship with your independent contractor hires, you may be contacted by the EDD and the IRS for a potential mislabeling claim. Mislabeling is one of… [Read more]
