Been There, Done That

California CPAVol. 73 Nbr. 3, September 2004

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Summary


California's Employment Development Department is heavily engaged in attempting to re-categorize workers from independent contractors to employees. Apparently, EDD gets data from FTB and the IRS indicating if payments reported on a 1099 show up on the payee's Schedule C. It is an EDD audit indicator. Elsewhere, it was said that LLCs that choose to be taxed as corporations only pay the corporate tax, not the LLC tax. E-filing has resulted in Head of Household information being required for electronically filed returns. However, the requirements still confused many people, including CPAs.

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Extract


Been There, Done That

A couple of things are reasonably well known when it comes to dealing with California's Employment Development Department.

First, the EDD is heavily engaged in attempting to re-categorize workers from independent contractors to employees.

Next, p...

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