California Employer News and Updates
Find the latest tax news, annual updates, and resources to support you and your business.
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The Employment Development Department (EDD) has several new AB 5 related resources available to help distinguish between an employee and an independent contractor. These resources are available to help employers understand and comply with the exceptions to the ABC test in certain industries:
- Information Sheet: Employment (DE 231) (PDF)
- Information Sheet: Occupations – ABC Test Exception (DE 231O) (PDF)
- Information Sheet: Contracts for Professional Services – ABC Test Exception (DE 231PF) (PDF)
- Information Sheet: Taxicab Industry (DE 231TC) (PDF)
These information sheets and many others are available at Online Forms and Publications to provide assistance with payroll tax reporting.
Additionally, the EDD, in conjunction with the Department of Industrial Relations, Division of Labor Standards Enforcement (DLSE), is offering a no-cost webinar, AB 5 Motor Carrier Worker Classification, aimed at helping the trucking industry understand and comply with AB 5. In this webinar, you will receive the latest information updates from the EDD and the DLSE on AB 5 and the ABC test. Visit Payroll Tax Seminars to register for an upcoming webinar and for more information on other available seminars.
If you have any questions, contact our Taxpayer Assistance Center at 1-888-745-3886.
In May 2021, the Employment Development Department (EDD) implemented the Box.com application. This is an online cloud service platform that provides the Tax Branch the ability to receive large files of up to 15 GB through a secure and encrypted channel.
Prior to launching the Box.com application, customers had limited options such as fax, email, and mailing paper documents during a tax audit, or while working with a compliance representative. While these methods of data sharing are still available to customers, the Box.com application has provided a simple and streamlined process for submitting employer records in the telework environment. In the near future, the Tax Branch is looking to expand the use of this tool for its outbound functionality, which will allow us to share data externally with our customers. We have received positive feedback over the last several months as Box.com has made collaborating with our customers a simple, seamless, and efficient process.
Your annual Statement of Charges to Reserve Account (DE 428T) will be issued in a few months. It notifies you of the Unemployment Insurance (UI) benefit charges and credits to your reserve account during the fiscal year from July 1, 2021 through June 30, 2022. The itemized charges to your reserve account are based on the UI benefits paid to your former employees. These charges may increase your UI contribution rate for the 2023 tax year, therefore, it is important to review your DE 428T for accuracy.
As a reminder, the non-charging provision for UI benefits related to COVID-19 ended on September 4, 2021. The DE 428T will reflect charges for benefits paid after September 4, 2021 through June 30, 2022.
If you disagree with any of the charges listed on the DE 428T, you may file a protest online using e-Services for Business, or by mail within 60 days from the issued date on the DE 428T. For further information, please refer to the Information Sheet: Statement of Charges to Reserve Account (DE 428T) (DE 428 I) (PDF) or the DE 428T Protest Sample Form (DE 428C) (PDF).
If you need assistance enrolling or accessing your employer payroll tax account using e-Services for Business, or have questions on how to view your DE 428T online, contact the Taxpayer Assistance Center at 1-888-745-3886.
The Disability Insurance Branch (DIB) is taking action to halt suspected organized criminal elements who are attempting to file false Disability Insurance (DI) claims. The criminals use stolen identities and credentials of individuals and licensed health care professionals in order to perpetrate the fraud. In order to receive benefits, licensed health care professionals are required to certify the illness, pregnancy, injury, or disability of the individual seeking DI benefits from the Employment Development Department (EDD). Evidence of the scam included an increase in new licensed health care professional online accounts and a rise in DI claims. The DIB partnered with various stakeholders who assisted with helping to identify legitimate claims as well as how to report suspected fraud. To help protect legitimate providers and claimants from further fraud, the DIB boosted its licensed health care professional vetting process by implementing a federally trusted verification technology called ID.me that specializes in digital identity protection to enhance the current verification process.
Employers who receive a Notice to Employer of Disability Insurance Claim Filed (DE 2503) or Notice to Employer of Paid Family Leave Claim Filed (DE 2503F) that they believe is fraudulent should return the form to the EDD along with any information about the fraudulent activity. Attach any documents to support the information contained in the form. Employers may also file a fraud report by visiting the EDD homepage and selecting the “Help Fight Fraud” link. Employers should also notify their employee that they are likely a victim of identity theft and that there are measures they can take to protect their identity. Identity theft victims may also want to file an identity theft report with the Federal Trade Commission (FTC).
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