NR No. 24-20
Contact: Loree Levy/Greg Lawson
916-654-9029
mediainquiries@edd.ca.gov
SACRAMENTO – The Employment Development Department (EDD) issues the following statement with regard to loan-out corporations:
“We understand the great importance of California’s film and television industry and are proud of our work to support California’s employers and industries. We have received various inquiries highlighting questions about loan-out corporations' ability to operate in California. As we have previously stated, EDD is not taking action to ban these companies in California.
We are one of the nation’s largest tax collection agencies and work closely with businesses to collect payroll taxes that fund vital Unemployment Insurance and State Disability Insurance benefits for workers. Our commitment is to ensure these taxes are collected according to state law.
We will continue our communication with industry representatives to ensure their concerns are heard and understood. We are optimistic that this dialog will help bring further clarity and information for the benefit of everyone who works in one of California’s most iconic industries.
We understand taxes can be complex, and we are here for those who have questions. We are committed to providing excellent service to California employers, communicating with industries, and supporting a fair payroll tax system for the benefit of all Californians. Our Office of the Taxpayer Rights Advocate is responsible for protecting the rights of taxpayers during all phases of a tax administration process.”