Segal, Cohen & Landis, P.C.
California EDD Payroll Tax Defense
IRS tax attorneys — Beverly Hills, CA. National representation.
The California Employment Development Department (EDD) administers state payroll taxes — unemployment insurance (UI), employment training tax (ETT), state disability insurance (SDI), and California income tax withholding (PIT). EDD audits are particularly dangerous for businesses because misclassified independent contractors can result in back payroll taxes, substantial penalties, and personal liability for business owners.
California's AB5 law — one of the most aggressive independent contractor reclassification statutes in the country — has dramatically expanded EDD audit activity.
How We Help
Our Approach to California EDD Tax Attorney
EDD Audit Representation
EDD audits focus on worker classification, unreported wages, and payroll tax calculations. We represent your business during the audit, control document production, and present the legal and factual case for your worker classification.
Independent Contractor Defense
California's ABC test from AB5 is one of the most difficult independent contractor standards in the country. We analyze your contractor relationships, identify legally defensible exemptions, and build the documentation required to defend IC classification.
EDD Assessment Appeals
EDD assessments can be appealed to the California Unemployment Insurance Appeals Board (CUIAB). We prepare the appeal, represent you at the hearing, and evaluate further judicial review options.
EDD Collection Defense
The EDD has aggressive collection powers including bank levies, wage garnishments, and personal liability assessments. We negotiate collection alternatives, request abatements, and protect business and personal assets.
How It Works
The Resolution Process
EDD Notice Analysis
We review the EDD audit letter or assessment notice, identify the specific issues, and advise on all applicable deadlines.
Documentation Review
We analyze your worker contracts, payment records, and business practices to identify your strongest defense positions.
Audit Representation
We communicate with EDD auditors on your behalf, control document production, and defend your worker classification.
Resolution
We negotiate the final assessment, appeal unfair adjustments, and arrange payment plans or abatements where the assessment stands.
Ready to Resolve Your Tax Problem?
Our attorneys have helped thousands of clients resolve IRS matters. Your consultation is free and confidential.
Common Questions
Frequently Asked Questions
What is the EDD's independent contractor test?+
California uses the ABC test from Dynamex/AB5. A worker is an employee unless: (A) they are free from control and direction, (B) they perform work outside the usual course of the hiring entity's business, AND (C) they are customarily engaged in an independently established trade or occupation. All three parts must be met.
Can business owners be held personally liable for EDD taxes?+
Yes. Similar to the IRS Trust Fund Recovery Penalty, EDD can assess personal liability against officers and responsible parties who had authority over payroll decisions and who willfully failed to remit payroll taxes.
Beverly Hills · Los Angeles · National
Segal, Cohen & Landis, P.C.
9100 Wilshire Boulevard, 601 East Tower, Beverly Hills, CA 90212
Free Confidential Consultation