Independent Contractor v. Employee Tax Issues
jdawson
5 Posts
The EDD has determined (without an evidentiary hearing) that our client’s workers
are employees, not independent contractors. Since that determination, our client’s
unemployment insurance account has been debited due to a former worker’s filing for
unemployment benefits after losing his job with his then employer. (The former worker did
not file for unemployment benefits against our client.) Moreover, we are concerned that the
IRS will hit our client for various taxes based on the EDD’s determination. We will likely not
have an administrative trial for almost a year on the employee v. independent contractor issue.
How do we stop the unemployment debit bleeding and prevent IRS scrutiny, or at least
minimize the exposure?
are employees, not independent contractors. Since that determination, our client’s
unemployment insurance account has been debited due to a former worker’s filing for
unemployment benefits after losing his job with his then employer. (The former worker did
not file for unemployment benefits against our client.) Moreover, we are concerned that the
IRS will hit our client for various taxes based on the EDD’s determination. We will likely not
have an administrative trial for almost a year on the employee v. independent contractor issue.
How do we stop the unemployment debit bleeding and prevent IRS scrutiny, or at least
minimize the exposure?
