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Home > Archives for EDD Audit

Audits as they Relate to Workers’ Compensation with benchmark commercial insurance

January 23, 2022

Make sure you provide the list of employees, by wage category, including their wages and their job description with the corresponding code description.

We partnered with benchmark commercial insurance to discuss how audits relate to workers’ compensation. Benchmark offers a boutique approach to serving their clients through providing and maintaining commercial and personal insurance policies. Their goal is to establish comprehensive risk management and accident-avoidance programs to help prevent claims from arising. Get… [Read more]

Filed Under: Blog, EDD Tagged With: 1099, Audit, Audit Risk, benchmark commercial insurance, California EDD, Clients, EDD, EDD Audit, EDD Audit Risk, Independent Contractor, Reduce Audit Risk, W-2, wage verification, worker, workers' comp, workers' compensation

California CPA’s: Questions to ask your Clients to Reduce EDD Audit Risk

January 16, 2022

California CPAs should ask their clients who hire 1099s if they have a contractual agreement, invoices, licenses, insurance, and an EIN.

Certified Public Accountants (CPAs) have the most insight into their business owner clients’ daily transactional history. You may find that your clients who have 1099 contractors are now in the grey area of worker classification since it was redefined by AB-5 in January 2020.   Under the new bill, all workers… [Read more]

Filed Under: Blog, CPA, EDD Tagged With: 1099, Audit, Audit Risk, California CPA, California EDD, Clients, CPA, EDD, EDD Audit, EDD Audit Risk, Independent Contractor, Reduce Audit Risk, W-2

What Will 2021 EDD Audits Look Like?

December 26, 2021

A 2021 EDD Audit will include classification criteria from the Borello Test and the ABC Test

Watch our video below to learn how the last 12 quarters affect your EDD audit criteria. Have You Received an EDD Audit Letter? The California Employment Development Department (EDD) sends audit letters through the mail. If you receive an audit letter, you have 30 days to reply. Typically, the agency… [Read more]

Filed Under: Blog, EDD Tagged With: AB-5, ABC test, Assembly Bill 5, Audit, Audit Criteria, Audit Letter, Benefit Audit, Borello Test, EDD, EDD Audit, UI Benefits, Unemployment Audit

What to expect in an EDD Audit?

October 24, 2021

what is the process of an edd audit

If your business is experiencing an EDD audit, it’s important to know what to expect. Founder and managing attorney at Milikowsky Tax Law, John Milikowsky, breaks down the EDD audit process and the frequently asked questions that come with an EDD audit.  “What you can expect from us, whether you… [Read more]

Filed Under: Blog, CSLB, EDD Tagged With: Attorney, Audit, audit process, audit triggers, CPA, EDD, EDD Audit, edd audit process, IRS audits

Right of Control: Who has it and How Does EDD Determine 1099 Status?

August 29, 2021

Right of Control: Who has it and How Does EDD Determine 1099 Status?

When determining whether your workers should be classified as employees or independent contractors, it’s critical to ensure that you are closely following the Employment Development Department’s (EDD) strict guidelines.  On the simplest level, proper classification is determined by whether or not the principal, or employer, holds the “right of control.”… [Read more]

Filed Under: Blog, CSLB, EDD Tagged With: Audit, Business Owners, California Taxes, Corporate Tax Compliance, cryptocurrency, EDD, EDD Audit, Filing taxes, right of control, Tax Attorney, Tax Preparation, Tax Season, taxes

How to Prepare for an EDD Misclassification Audit

October 28, 2020

EDD Employee Misclassification Audit

As a business owner the best way to prepare for, or avoid entirely, an audit from the Employment Development Department (EDD), is to make sure that you’re correctly classifying your employees. Whether your employees W-2 or 1099 employees or a combination of both, it’s important to ensure that they are… [Read more]

Filed Under: Blog, COVID-19, EDD Tagged With: Audit, Business Owners, California Taxes, Corporate Tax Compliance, EDD, EDD Audit, Filing taxes, International Law, International Tax, IRS, IRS Audit, misclassification, Small business, Tax Attorney, Tax Preparation, Tax Season, taxes

AB-5 Exemptions: Your Comprehensive Guide

October 26, 2020

AB-5 Exemptions

California Assembly Bill 5 (AB5) has built-in exemptions for many businesses.  We say “Not So Fast”! Even exempted industries have to adhere to the old 13 point Borello criteria for classifying 1099 contractors.  So, while many business owners are celebrating the free pass the AB-5 exemptions seem to offer, take… [Read more]

Filed Under: Blog, COVID-19 Tagged With: 1099, AB5, ABC test, Audit, Business Owners, California Taxes, Corporate Tax Compliance, EDD, EDD Audit, Filing taxes, International Law, International Tax, IRS, IRS Audit, Small business, Tax Attorney, Tax Preparation, Tax Season, taxes

Stop an EDD Audit of Your 1099s in its Tracks

October 19, 2020

1099 Audits

How to navigate AB-5 Assembly Bill 5, which required companies to reclassify most independent contractors as employees, is hurting employees. California’s new AB-5 and Gig Workers Bill has employers concerned since it is unknown what EDD will do next. The bill that passed a few months back was already affecting… [Read more]

Filed Under: Blog, COVID-19, EDD Tagged With: 1099, AB5, ABC test, Audit, Business Owners, California Taxes, Corporate Tax Compliance, EDD, EDD Audit, Filing taxes, International Law, International Tax, IRS, IRS Audit, Small business, Tax Attorney, Tax Preparation, Tax Season, taxes

Navigating an EDD Audit: What to Expect

October 1, 2020

EDD audit

If you have been contacted by California EDD, you don’t have to go through the CA EDD Audit process alone. Dealing with EDD can be time-consuming, stressful, and expensive (if you owe penalties and back taxes). By working with a skilled EDD audit attorney, you can ensure you are properly… [Read more]

Filed Under: Blog, EDD, News Tagged With: Audit, Business Owners, California EDD, California Taxes, EDD Audit, International Tax, IRS Audit, Small business

6 Mistakes Businesses Can Make When Hiring and Working With Independent Contractors

June 20, 2018

Business owners should be aware of the common mistakes when hiring and working with 1099 independent contractors

Business owners hire independent contractors to help with specialized or contracted work. But, as a business owner, 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 Employment Development Department (EDD) and/or the Internal Revenue Service… [Read more]

Filed Under: Blog, EDD, News Tagged With: 1099, 1099 independent contractors, AB-5, ABC test, Audit, Audits, business owner, California Taxes, Contractors, EDD, EDD Audit, employee, employee classification, Independent Contractor, IRS, IRS Audit, scope of work, W2, worker

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