EDD Audit Triggers For any business operating in California, an audit by the Employment Development Department (EDD) can be a significant concern. The EDD is responsible for administering the state’s payroll tax laws, collecting contributions for unemployment insurance (UI), state disability insurance (SDI), employment training tax (ETT), and personal income tax (PIT) withholding. When the
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Beyond the Basics: Advanced Strategies for Managing Your California UI Rate and Minimizing Costs
California UI Rate For California businesses, unemployment insurance (UI) is a mandatory payroll tax designed to provide temporary financial assistance to eligible workers who lose their jobs through no fault of their own. While compliance with UI tax obligations is non-negotiable, many businesses overlook the proactive strategies that can significantly influence their UI rate and,
The OECD’s Two-Pillar Solution: Progress and Challenges in 2025
Organization for Economic Cooperation and Development OECD The Organization for Economic Cooperation and Development (OECD) has long championed a two-pillar approach to address the tax implications of digitalization and globalization. In 2025, this initiative remains at the forefront of international tax reform. While Pillar Two—introducing a 15 percent global minimum corporate tax rate—has gained traction
EDD Audit Process
The California Employment Development Department (EDD) conducts payroll tax audits to verify businesses are in compliance with the state’s employment tax laws. These audits are designed to ensure employers are correctly reporting and remitting taxes related to wages, unemployment insurance, disability insurance, and other employment-related obligations. For businesses operating in California, understanding the EDD audit
The Exception to the Exception to the Exception — California Court Rules Certain Medical Devices May be Subject to CDTFA Sales Tax
Certain Medical Devices May be Subject to CDTFA Sales Tax A recent California Appeals Court ruled certain medical devices may be subject to CDTFA Sales Taxes. In Medtronic v. CDTFA, a California Appeals court ruled a medical device maker was responsible for paying sales tax on the heart rate monitors it sold in California. This
Living on the Edge – Life Without Creating a Will
Life Without Creating a Will Everyone dies eventually. You will die eventually. What is important is what you do with your time while you are alive. When I was touring law schools a professor told me he was married, had kids, and loved to drive his motorcycle up the coast of California. This seems like
IRS Releases Dirty Dozen List of Tax Scams
The IRS recently released its annual Dirty Dozen list of tax scams. The Tax scams on the list include phishing scams, ghost preparers, and bogus tax deductions. One of the scams on the list is misleading social media advice. Social media is a source of information and disinformation. It is not hard to come by
Personal Responsibility for CDTFA Sales Tax Liabilities — Even Pretend Bosses Can Be Subject to a Dual Determination
Heavy is the head that wears the crown – even if the crown is not real. Individuals can face personal responsibility or a dual determination for the CDTFA sales tax liabilities of a corporation or LLC. Usually, the individual the CDTFA finds personally liable is the owner and/or officer of the corporation or LLC. The
IRS Offers Advice: How to Choose the right Tax Preparer or Accountant
The IRS recently issued a news release advising taxpayers on how to choose the right tax preparer or accountant to prepare tax returns. While many people with simple tax returns such as wage earners may not need the services of a tax preparer or accountant, many people with potentially complex tax returns such as business
IRS Provides New Guidance on Section 530 Relief for Employment Tax Audits
Section 530 Relief The IRS recently provided new guidance on how it will apply Section 530 Relief to Employment Tax Audits. The IRS issued Rev. Proc. 2025-10 which announced the IRS’ updated positions on Section 530 relief available to taxpayers in Employment tax audits who were found to have misclassified workers as independent contractors. The