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Merchandising Concept

Independent Contractor Audits: Six Required Steps Before Lawsuit for Refund

By Blog, Business Law, Employment Law

n California, the Employment Development Department (“EDD”)investigates misclassification of employees and, if misclassification is found, can issue an assessment against the offending business to recover tax related withholding the employer should have paid but didn’t (including unemployment and state disability insurance payments, employment training taxes, and personal income tax) and penalties. Now, a California Court of Appeal has emphatically warned employers about the administrative steps they must follow if they intend to challenge the EDD assessment in court and seek a refund of the tax related payments.

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