Independent Contractor Reporting

You must report independent contractor information to the EDD within 20 days of either making payments totaling $600 or more or entering into a contract for $600 or more or entering with an independent contractor in any calendar year, whichever is earlier. Businesses that transmit electronically must submit 2 monthly reports that are not less than 12 days and not more than 16 days apart. Submit reports only for new independent contractors.

You are required to provide the following information:

Service-recipient (business or government entity):

• Federal Employer Identification Number (FEIN)
• California employer payroll tax account number (if applicable)
• Social Security number (SSN)
• Service-recipient name/business name, address, and phone number

Service-provider (independent contractor):

• First name, middle initial, and last name
• Social Security number
• Address
• Start date of contract (if no contract, date payments equal $600 or more)
• Amount of contract, including cents (if applicable)
• Contract expiration date (if applicable)
• Ongoing contract (check box if applicable)

Use e-Services for Business to submit a Report of Independent Contractor(s) (DE 542) online. e-Services for Business is your fast, easy, and secure way to file, pay, and manage your employer payroll tax account(s) online. With e-Services for Business you can:

• File returns/reports.
• Make payments.
• File a Report of Independent Contractor(s) (DE 542).
• File a Report of New Employee(s) (DE 34).
• And more!

Or submit a paper report of independent contractors by mail or fax. You may complete the DE 542 or create your own form with all the required information. You can obtain a DE 542 using the following options:

• Download a fill-in DE 542 (PDF) from the EDD website.
• Order through the Online Forms and Publications page.
• Print your data directly from your computer to the DE 542 by following the Print Specifications (PDF).
• Call the Taxpayer Assistance Center at 1-888-745-3886 to obtain a form.
• Create your own form with all of the required information.
• Visit your nearest Employment Tax Office. 

Mail or fax your paper DE 542 to:

Mail: 
Employment Development Department
PO Box 997350, MIC 96
Sacramento, CA 95899-7350

Fax: 1-916-319-4410

For additional information:

• Watch the tutorial File a Report of Independent Contractor(s) (DE 542) or Report of New Employee(s) (DE 34) (YouTube).
• Visit FAQs - e-Services for Business.
• Review the Electronic Filing Guide for the Independent Contractor Reporting Program (DE 542M) (PDF).

A service-recipient may be charged a penalty of $24 for each failure to report within the required time frames, unless the failure is due to good cause. If the failure to report is intentional or if the report is falisfied, a penalty of $490 may be charged.

• FAQs - California Independent Contractor Reporting
• Form 1099-NEC or 1099-MISC IRS Filing Requirements
• FTB Nonresident Withholding Process
• Taxpayer Assistance Center 1-888-745-3886
• What Is the Difference Between a Common Law Employee and an Independent Contractor?
• Employment Determination Guide (DE 38)(PDF)
• Independent Contractors Misconceptions Brochure (DE 573M)(PDF)