What Happens If You Misclassified a Worker?

What does the employment classification of workers have to do with payroll tax audits? Everything. When the Employment Development Department of the State of California decides to audit, the classification of your workers is the auditor’s sole concern. Additionally, the IRS often adopts the results of the EDD audit to use in assessing federal penalties. For this reason, it is critical to ...
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What Are Your Payroll Tax Responsibilities?

In a previous post, we talked about the difference between independent contractors and employees. One of the biggest differences, and one that often drives intentional worker misclassification, is that employers must withhold and pay payroll taxes for employees whereas they do not for independent contractors.
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Classifying Employees and Independent Contractors

You have hired someone to do work for you. Is that person an employee or an independent contractor? The answer is important because misclassifying an employee as an independent contractor, whether intentionally or through ignorance, can land you in court and in debt for payroll taxes. There are several tests from a variety of regulatory agencies that are used to try to determine employment...
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BOE Sales Tax Audits, Pt 4: After the Audit

Here is the final installment of our four-post series about California Sales Tax and Use Audits. In Part 1, we cover how audits are triggered and companies selected for audit. Part 2 is about how the audit is conducted and the types of documents you may be required to provide. Part 3 gave you some tips for working with an auditor and the type of investigation an auditor may perform. In Part 4...
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BOE Sales Tax Audits, Pt 3: How to Prepare for an Audit

Welcome to Part Three in the BOE sales tax audit series. In Parts One and Two, we provided an overview of how an audit is conducted and how companies are selected for audit as well as audit procedures and techniques. Now you will learn how to prepare for an audit, including how to work with an auditor and which records and documents to have ready. You will also read about audit testing and...
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BOE Sales Tax Audits, Pt 2: Audit Procedures and Techniques

This post is the second in a four-part series explaining how the California Board of Equalization (BOE) performs its audit function, what to expect from an audit, how to prepare for it, and what happens when the audit is complete. The first post of this series explained the role of the Board of Equalization and the goals of a sales tax audit. It includes when an audit can occur, how companies...
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BOE Sales Tax Audits, Pt 1: What Is an Audit and How Are Companies Selected?

This post in one in a four-part series explaining how the California Board of Equalization (BOE) performs its audit function, what to expect from an audit, how to prepare for it, and what happens when the audit is complete.
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Common Tax Issues for Small Businesses

Small businesses, of which there are thousands in California, spend the highest percentage of time of any business entity preparing and submitting taxes. Federal, state, and local tax requirements are extremely complex and change every year. Multiple agencies administer different taxes, and each has its own set of rules and methods of payment. It is no wonder that small business owners often...
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California Payroll Tax Problems and the EDD

Part of being a business owner is filing and paying payroll taxes for your employees. In California, the Employment Development Department, or EDD, administers these taxes. In addition to receiving tax filings and payments, the EDD also identifies and investigates potential infractions of tax law. What do you do if you develop tax problems and find yourself on the receiving end of an audit?
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Do You Need California Sales Tax Defense?

The Board of Equalization is the California public organization that administers the state sales and use tax law and regulations. The BOE also conducts audits, collects unpaid California state sales and use taxes, and administers the state property tax. There are presumptions of the tax code that the BOE follows in its operation and decision-making process. The BOE presumes: All sales are...
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The Ultimate Guide to California Sales Tax Audits

If you're facing a sales tax audit from the Board of Equalization, our free guide will teach you exactly what to expect and how to prepare. Click the book below for some peace of mind.

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