EDD Audit Process
If you have been selected for an EDD audit, then this means that the EDD thinks that you have misclassified an employee, or you have not submitted payroll taxes that you were supposed to submit. These are serious mistakes and they do happen, but the EDD will not let them slide and they will hold you accountable.
There are some steps that an auditor will take when the audit process begins that you need to be aware of. For example, one of the first steps is to have an entrance exam. This exam will explore why you are being audited and also what you are required to do in the audit. The next step will involve the auditor looking over your company’s records and books to make sure that there are no obvious errors.
Once the audit has been completed, you will be alerted to the results of it. There are four possible outcomes to the audit, which include an overpayment, underpayment, no charge, or both an underpayment and overpayment.
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