Occupation Development Department EDD

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EDD Services. Work TaxesUnemployment InsuranceEmployment Training TaxState Disability InsuranceState Personal Income Tax Withholding. EDD\'s Tax Audit Program. Review of Audit Program. 8 Area Audit Offices165 Tax AuditorsAudit for Four Taxes:Unemployment Insurance TaxEmployment Training TaxDisability Insurance TaxPersonal Income Tax Withholding.

Presentation Transcript

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´╗┐Work Development Department (EDD)

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EDD Services Employment Taxes Unemployment Insurance Employment Training Tax State Disability Insurance State Personal Income Tax Withholding

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EDD's Tax Audit Program

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Overview of Audit Program 8 Area Audit Offices 165 Tax Auditors Audit for Four Taxes: Unemployment Insurance Tax Employment Training Tax Disability Insurance Tax Personal Income Tax Withholding

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Overview of Audit Program We perform charge reviews and examinations 4,000 reviews and examinations $187 million Average appraisal sum: $46,000 Audits are perceived by the AICPA & fit the bill for CPA encounter

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Overview of Audit Program Resolve questioned advantage claims Represent the State at expense and advantage hearings Provide escrow discharges, advisories, enroll new bosses

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Nature of Employment Tax You don't should be productive to bring about a huge obligation Many misguided judgments Employers require sound strategies for success

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Focus of the Audit Program Bring bosses into consistence who are: Misclassifying laborers as Independent Contractors Not accurately ordering remuneration to workers as wages

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Identifying Non-consistence Obstructed Claims Form 1099s Underground Economy Operations (UEO) Tax Enforcement Section (TES) Employment Enforcement Task Force (EETF) Economic and Employment Enforcement Coalition (EEE)

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Strategic Initiatives Courier Industry SUTA Dumping A business with a high UI rate improperly secures a lower rate through different straightforward or complex acquisitions

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SUTA Dumping Schemes They have a high duty rate (6.2%) Create another substance and secure another 3.4% rate Purchased Shell Transaction Nurse a low rate in a current element

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AB 664 - Effective January 1, 2005 Amends 1052 of the CUIC Provides that this segment, which takes into account the exchange of the antecedent's save record to the successor, is not material to any acquisitions made exclusively or essentially with the end goal of acquiring a lower rate

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AB 664 - Effective January 1, 2005 Adds 1061, CUIC Mandates the exchange of the hold account when the ancestor and successor have regular Ownership Management or Control

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AB 664 - Effective January 1, 2005 Adds 977(c), CUIC Provides for the most extreme duty rate in addition to an extra 2% for each pertinent rating period

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AB 664 - Effective January 1, 2005 Adds segment 1145 of the CUIC For promoters who purposely exhort SUTA Dumping Provides for a punishment $5,000 or 10% of the consolidated measure of underreported commitments, punishments, and intrigue

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Partnership with the IRS Exchange of shut cases Exchange of review leads Strive for collaboration when building up our vital arrangements

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EDD's Settlements Program

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CUIC Section 1236 Allows EDD to settle debated business impose issues when there is some danger of misfortune related with prosecuting the case and when it is to the greatest advantage of the State

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Settlements Case Requirements Section 1236 of the CUIC requires the accompanying: The work impose issue must be in question The questioned issue is the aftereffect of evaluation, bid, or dissent on a case for discount The dangers and expenses related with case are steady with a trade off of the assessment risk

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Denial for Settlements Audit cases in process Generally cases including misrepresentation or a plan to sidestep arrangements of the Code Cases including established issues or where settlement will damage the law Employer declares just issues of reasonableness, money related hardship, or survivability of the business

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Taxpayer Advocate Office If you can't resolve a finance impose issue with an EDD Representative Supervisor and Office Manager

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EDD Advocate Responsibilities Independent status and survey Protect citizens' rights Adhere to organization impose laws Identify patterns and issues Ensure affable open treatment

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When Normal Channels Do Not Work Fax Phone Mail E-mail Internet

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Helpful Websites www.taxes.ca.gov www.edd.ca.gov

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Employment Development Department This finishes up our introduction