As a business owner, one of the many things you probably don’t want to deal with is an EDD audit. Preparing for an audit from the EDD can be hassling at times, considering the detailed requirements involved. Fortunately, you don’t have to face everything alone. Hiring a reliable attorney will help you protect your property from tax-related problems. This post will explain everything you need to know about an EDD audit, so keep reading.
What Triggers an EDD Audit?
The Employment Development Department (EDD) carries the responsibility to collect employment payroll taxes from businesses. Performing audits allows them to fund state programs such as disability insurance, paid family leave, and unemployment insurance. To accomplish this task, the EDD performs the so-called EDD audits to penalize non-compliant companies.
Businesses usually face such audits when they mislabel workers as independent contractors or fail to pay employment-related taxes. There are also instances in which contractors file for disability or employment benefits. Whenever these situations occur, the EDD suspects that something fraudulent is happening since contractors are not eligible for these benefits.
An Overview of the Audit Process
Understanding how the process works will help you prepare before going to court. Going to court unprepared might incur additional penalties and fines. If you want to avoid these repercussions, you should put in some effort and seek help from a professional.
How do you verify that you are dealing with an EDD audit in the first place? You can confirm that you are indeed facing one by looking out for notice/s from the EDD itself. Once you’ve done this, you can proceed to prepare your records. Some essential documents include quarterly employment tax returns, cash payment records, 1099 forms, and supporting documentation.
What to Expect From the Audit Meeting
Before you meet with your EDD auditor, it would be wise to review your documents with your lawyer first. Doing so ensures that you did not overlook anything important. The auditor would then review the requirements you handed over. As long as your documents are in order, you don’t have to worry about anything else since your attorney would handle the rest.
Get a Free Case Evaluation Today
Choosing the right lawyer to help you defend yourself against a criminal charge is crucial. After all, they would represent you in court and negotiate with your auditor. You deserve the best and nothing less. Why don’t you let the Dallo Law Group’s reputable lawyers handle your case? Their team has some of the best attorneys you can find in San Diego, California. Get your free case evaluation today by simply clicking here.