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]
Remedy For Failing To File 1099s
If you’re thinking back on the previous year and realizing there are 1099 forms you did not submit, here are the steps you can take to remedy the situation and possibly avoid having to pay fines on your errors. Reach out to your tax attorney and share the information of… [Read more]
EDD: 1099s vs Employees, Don’t Risk Misclassification
What To Do When EDD Investigates Your Contractors The California Employment Development Department (EDD) has a Joint Enforcement Strike Force (JESF) with local and federal agencies dedicated to uncovering cases of worker misclassification. If you’ve been targeted for an EDD audit there are steps you should take immediately to protect… [Read more]
What to Expect from Your Upcoming EDD Audit
The State of California’s Employment Development Department (EDD) is responsible for collecting employment payroll taxes to fund and administer unemployment and disability insurance, paid family leave, and other state programs. Beyond tax collection, the EDD also has the authority to issue audits to anyone operating a business within California. The… [Read more]
Ways to Mitigate Your Risk of an EDD Audit
If you utilize contractors in your business, you are responsible for all of their financial, legal, and administrative paperwork. One of the most important responsibilities you are in charge of is withholding employment taxes and remitting them to the appropriate agencies. Failing to do so (or improperly filing) can result… [Read more]
What is Form SS-8 and When Do I Need to Use It?
Each industry has to follow specific hiring procedures and paperwork, particularly for tax and benefit purposes. When working with independent contractors, you must correctly label them for your business tax purposes. Yet determining who is an independent contractor and who is an employee can be challenging. If you accidentally mislabel… [Read more]
Understanding EDD Obligations as a California Employer
All employers in California have certain state tax requirements on top of their federal tax obligations. California state taxes for businesses fall into four categories: unemployment insurance (UI), employment training (ETT), state disability insurance (SDI) and personal income (PIT). The first two are the responsibility of the employer to pay,… [Read more]
