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The Two Types of Income Tax Audits in California

There are two types of income tax audits in California - those originated by the State of California, and those based upon another agency's audit such as the IRS.  This second form of audit, often referred to as a "Piggy-Back Audit" is one of the most hazardous and unexpected challenges...

Change Your Business Model to Avoid Independent Contractor Misclassification

Should you consider A new business model to avoid independent contractor misclassification and associated penalties and financial consequences?  The rising number of California Employment Development Department or EDD misclassification audits is skyrocketing.  The first thing many EDD auditors are asking is simple: "Do you have any 1099 workers?" If the answer...

California EDD is Actively Targeting Independent Contractor Misclassification

The California EDD is actively targeting independent contractor misclassification and seeking substantial tax revenue from San Diego and California employers.  While the federal agencies may have seemed to relax based upon administration policies, the California agencies are making this a primary focus.  If you have 1099 workers or independent contractors...