EDD Audit and What to Know
If you have been chosen for an EDD audit, know that it is because something happened and one of your employees may have said they were misclassified, an employee may have applied for unemployment, or maybe you forgot to pay some of your payroll taxes on time. Either way, you need to be prepared and have the best representation on your side to avoid issues and fines.
Before the audit starts, you will find that the auditor arrives at your business and speaks with you about the process and why you are under audit. The auditor will also talk about what is expected from you and what your legal options are. We will be there with you during this interview.
Once the auditor explains the process to you, you will then need to hand over your payroll records and books. The auditor will then review them and look for any errors or issues. Once the audit is completed, you will then receive a letter with the results of said audit. There are four possible outcomes which include overpayment, underpayment, no charge, or both overpayment and underpayment.
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