Did you know the California EDD audits San Diego employers every 3 years? If you have employees, there will be a California EDD payroll tax audit of your San Diego Business every 3 years. They will review all of your employees, and all of your employment records as well as the tax returns you have provided. They are experts at creating issues, especially around reclassifying independent contractors as employees, or “exempt” employees as actual hourly employees. We aggressively defend these issues for our clients, and ensure that appropriate systems, controls and documentation is in place to answer these types of questions. This is the one of the most substantial services we can bring to our clients, and an issue we regularly fight on their behalf with the EDD.
While the California EDD audits San Diego employers every 3 years a single complaint by an employee may immediately raise a significant challenge for your company. One example is a fired employee who complains to a California agency that “they never gave me the breaks they were supposed to.” So an audit takes a deep dive into your break policies, records surrounding existing and previous employees and the documented procedures, income and associated taxes. Violations result in substantial penalties, not only at the state level but with the IRS as well. Wage and hour issues can become quite expensive, and the process can have a measurable impact on the profitability of your business based upon the distraction of your focus from day-to-day business operations to managing an audit.
The California EDD audits San Diego employers every 3 years and you should not try to manage this process without experienced, proven counsel. If you have been contacted by the California EDD for a payroll audit we invite you to contact Allen Barron or call today to schedule a free initial consultation at 866-631-3470. We handle all communications with the associated agencies for you, so that you can keep your focus where it belongs – running your business.
