Reverent Employer Consultants will help your business identify audit triggers in advance in order to maintain the proper categorization of the workforce.
Some instances that may trigger an EDD audit are improperly categorized as independent contractors. Excessive issuance of 1099’s can also trigger EDD audits. Here are ways to avoid an EDD audit:
Avoid Tax Errors
Reverent Employer Consultants will work closely with you to consider hiring an accountant to help your business stay organized. They can advise you on how to best keep a handle on your records and prepare profit-and-loss statements so that you can see first hand how much money you are making and where it is all going. Most importantly, an accountant can keep you in tax filing compliance.
Maintain Accurate Records
A company that maintains accurate records should never panic during an audit. Without good records, companies have no means to justify their deductions under the tax laws. Reverent Employer Consultants can help you set up a calendar of activities that require receipts for all your business expenses.
Received an EDD Audit?
First off, take a deep breath. Secondly, contact a tax professional immediately. They will be able to walk you through what your next steps should be. Ignoring this type of letter is going to land your company in a world of trouble. Reverent Employer Consultants should also be one of your first phone calls in the event of this kind of an emergency.
At Reverent Employer Consultants, we review the persons and entities with whom you work, and assist your business in properly categorizing them. We will also guide you in selecting a reputable payroll company to minimize risk of EDD benefits, tax issues, and audits. Reverent Employer Consultants will also work with you to best educate your employees on how to communicate with your payroll company and accountant, in order to best protect your business.