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EDD Payroll Tax Audit? Let’s Review Your Options.
Worker misclassification and payroll tax disputes can be costly. Schedule a consultation to discuss your EDD audit and defense strategy.
An EDD Audit Can Create Massive Retroactive Liability
California’s Employment Development Department aggressively audits businesses for worker misclassification — reclassifying independent contractors as employees and imposing retroactive payroll taxes, penalties, and interest that can span multiple years. Under AB5, the burden is on the business to prove workers qualify as independent contractors.
Whether you’ve received an EDD audit notice, are facing a proposed assessment, or have already been hit with a reclassification determination, experienced counsel can help you mount an effective defense.
- Defend against EDD worker misclassification audits under the ABC test
- Challenge retroactive payroll tax assessments and penalty calculations
- Navigate the EDD protest and CUIAB appeal process
- Negotiate payment arrangements and penalty abatement
What to Expect
After You Book Your Call
Not a receptionist or a call center. You’ll be speaking with a trained member of our intake team who can meaningfully assess your situation.
We’ll discuss your situation, explain what’s at stake, and outline the realistic paths forward. If we’re not the right fit, we’ll tell you that.
The consultation is free and completely confidential. No engagement fees until we’ve discussed your situation and mutually agreed on a path forward.
How It Works
Three Simple Steps
1
Book
Choose a time that works for you.
2
Talk
15 minutes with our team. No obligation.
3
Plan
We’ll map out your options and next steps.
Confidential • No Obligation • Same-Day Available
Common Questions
California EDD FAQs
What is the ABC test for worker classification?
Under California’s AB5, a worker is presumed to be an employee unless the business can prove all three prongs: (A) the worker is free from the company’s control, (B) the work is outside the company’s usual business, and (C) the worker has an independently established trade. Failing any single prong means the worker is an employee.
How far back can the EDD assess?
The EDD typically audits 3 years of payroll records. However, if they determine willful underreporting, they can go back further. The retroactive assessment includes not just the employer’s share of payroll taxes, but also the employee’s share — creating a substantial financial burden.
Am I personally liable for EDD assessments?
In many cases, yes. California law allows the EDD to hold corporate officers, directors, and other responsible individuals personally liable for unpaid payroll taxes. This personal liability survives bankruptcy in most situations.
Can I still use independent contractors after an EDD audit?
Yes, but you’ll need to restructure your relationships to meet the ABC test. We can help you evaluate which workers qualify as true independent contractors and implement compliant engagement structures.
Get Started Today
Book Your Free 15-Minute Call
Schedule a brief call with our team to discuss your EDD payroll tax matter. We’ll assess where things stand and outline your defense options — confidentially and without obligation.
- Completely confidential — protected by attorney-client privilege
- Every situation is different — you’ll receive a custom assessment tailored to yours
- Same-day and next-day appointments available
If you have read this far, you have a notice and you are trying to understand it before doing anything that makes it worse. That instinct is correct.
The next right move is a 15-minute call. We will identify the audit type, confirm your deadline, and tell you honestly whether you need representation. There is no cost and no obligation.
Get a Candid Assessment — FreeOr call us directly at (619) 378-3138