Monthly Archives: October 2015

EDD and Me

Dear Readers,

I usually don’t share my opinion in Herald Publications newspapers, but I think this is important, especially to other small business owners.

A few months ago, I received a letter notifying me that Employment Development Department (EDD) wanted to conduct an audit. EDD is part of the Labor and Workforce Development Agency and handles the audit and collection of payroll taxes and maintains employment records for California workers.

I had just been audited by State Fund and wasn’t too concerned. Turns out it wasn’t a routine audit. EDD was on a mission to reclassify my independent contractors as employees, which they did. I went from having five part-time employees to over 25 employees and I was fined $13,000. EDD did not discuss their findings with me or ask me any questions related to my Independent Contractors. They reclassified everyone I issued a 1099 in the past three years, regardless of the circumstances. I was stunned and didn’t know where to turn.

I had to hire attorneys to represent me and I reached out to anyone I could think of to help. I contacted my newspaper association California Newspaper Publishers Association (CNPA), Congresswoman Maxine Waters office, Senator Ben Allen’s office, Assembly Member Autumn Burke’s office, Supervisor Don Knabe’s office and El Segundo Mayor Suzanne Fuentes. Only Mayor Fuentes took action.

Mayor Fuentes reached out and connected me to Assembly Member David Hadley’s office. These two elected officials stepped up and actively helped me. Sarah Wilfong, of Assembly Member Hadley’s office, regularly reached out to me and monitored what was happening, contacted EDD on my behalf and I felt supported 100%.

EDD had made factual and procedural errors … Continue reading →