San Francisco EDD Audit Attorney Ready To Serve You
The rise in remote and freelance work has left many businesses reeling. How you classify a worker has significant tax implications. If an independent contractor files an unemployment claim, it can trigger an audit by the California Employment Development Department (EDD). The EDD ensures businesses classify their workers correctly and pay payroll taxes.
Even if only one contractor claims to be an employee, the EDD might conduct an audit of your entire payroll. They review your tax records, payroll statements, and employee documents during the audit. They may interview people who work for you to decide if they think they are contractors or employees. The EDD uses the information to calculate how much taxes you should have paid. Then, they decide if they think you paid too much, too little, or the right amount of payroll and other taxes.
Sifting through the required materials to comply with the EDD audit can be stressful for business owners with many duties to take care of each day.
Save yourself the hassle by consulting a San Francisco EDD Audit Lawyer you can trust, like Allison Soares. She has extensive experience helping businesses understand the audit process. She also helps businesses appeal the EDD’s decision.
Did You Receive an Audit Notice from the EDD? Our San Francisco EDD Audit Attorney Is Here to Help
EDD notices don’t always look like daunting audit notices. But they can involve as much work and diligence to handle appropriately as an audit with the IRS.
Business owners may try to handle the audit by themselves. But they often get overwhelmed or miss essential deadlines because they don’t know how much work it takes to respond to an EDD audit.
An EDD audit lawyer is an indispensable asset to any business facing an audit.
Many business owners who try to handle the audit alone provide insufficient or too much information. This can lead the EDD to request more material than the situation warrants. An audit lawyer can help you give enough details to the EDD about your workers and contractors.
Allison has helped hundreds of businesses navigate the complex realm of EDD audits. She helps businesses limit their tax liability by using all available legal tools to advocate for the best outcome.
What Happens During an Audit with the EDD?
An EDD audit often begins when a former independent contractor files an unemployment or disability claim. Independent contractors are ineligible for unemployment or disability benefits. By filing the claim, they challenge their classification. Instead of investigating the worker’s status, the EDD may perform a company-wide audit. As part of this investigation, they look into your payroll practices, review your tax records, and gather other information.
Typically, the first communication you receive from the EDD is the Inquiry Regarding Records, the first step in the audit process. You usually need to complete and return this form within two weeks after receiving it. The form asks for details about you, your business, your workforce, and your accounting methods.
While the form seems like it’s gathering background information, it informs the progression of the EDD audit. Any misstep can delay the investigation or open you up to potential liability.
Allison Soares is an outstanding EDD audit lawyer in San Francisco. She can help you meet your obligations during the audit and can attend meetings with the EDD on your behalf. She helps clients identify and tender the information requested by the EDD. Allison leverages her skills and experience to help clients limit their payroll tax burden.
How Does the EDD Decide If a Worker Is an Employee or an Independent Contractor?
Whether a worker is an employee or an independent contractor largely depends on how much control the employer has over the worker. The EDD stresses that it doesn’t matter if the employer doesn’t exercise control. The most important question is the level of control the employer can exert over the worker.
Other factors include:
- Whether the worker owns their own business in which they provide services similar or identical to what they confer to the employer;
- If a manager oversees the worker and the level of control they have over how the work is completed;
- Who provides the tools for completing the work;
- How and when the worker receives payment for their services; and
- If the worker or employer thinks the worker is an employee or independent contractor.
The EDD may review contracts between the employer and the workers to learn about their relationship. Additionally, they may interview the employer and the workers.
Can I File an Appeal If I Disagree with the EDD Decision After the Audit Is Complete?
After the audit, the EDD issues a determination about your overall tax liability. The final decision indicates whether the amount of taxes you paid matches what you owed. You’ll get a refund if they decide you paid too much payroll taxes. If the EDD decides you didn’t pay enough taxes, you’re responsible for paying the rest. Additionally, the EDD may charge a hefty penalty for not paying taxes on time.
But you may be able to appeal the EDD’s decision, potentially lowering your payroll tax liability.
An Employment Development Department audit lawyer can help you timely file an appeal. They also serve as your legal advocate during the appeals process.
Allison Soares, Attorney at Law—The Payroll Tax Audit Lawyer You Need During an EDD Audit
Keeping up with payroll and other tax obligations is stressful. But an EDD audit can disrupt even the most prepared and diligent business owner. There’s no way around it. The stakes are very high, and missteps can cost your business thousands of dollars.
Attorney Allison understands what the outcome means for you and your business. She’ll fight for you during the audit process and help you file an appeal if necessary. Her outstanding legal ability and ethical practice earned her the AV Preeminent rating from Martindale-Hubbell. Her hard work and advocacy have saved businesses millions of dollars in taxes. She also handles clients with other types of cases, including: