EDD Petition for Reassessment: What California Employers Need to Know

By Marc Boulanger, CPA

If you disagree with an EDD employment tax assessment, a Petition for Reassessment is generally the formal procedure used to challenge the assessment.

The petition is filed with the California Unemployment Insurance Appeals Board, or CUIAB, which is separate from EDD. Filing deadlines are important, but filing the petition is only the beginning of the dispute process.

Received an EDD Assessment You Disagree With?

For a general EDD tax case, CUIAB states that a petition generally must be filed within 30 calendar days from the mailing date shown on the EDD notice. A jeopardy assessment has a 10-calendar-day filing period.

Review the actual notice immediately. Protecting the petition deadline should come before attempting to fully resolve every disputed audit issue.

What Is an EDD Petition for Reassessment?

A Petition for Reassessment is the formal method used to contest certain EDD employment tax assessments.

The petition tells CUIAB that the employer disputes the assessment and requests that it be reconsidered.

The dispute might involve worker classification, additional wages, payroll reporting, the amount of the assessment, penalties, or other employment tax findings.

Where Is the Petition Filed?

The petition is filed with the California Unemployment Insurance Appeals Board.

CUIAB is separate and independent from EDD. Its Office of Tax Petitions handles EDD tax petitions.

This distinction matters. You are not simply asking the original auditor to reconsider the audit. You are invoking the formal tax petition process.

How Long Do You Have to File?

CUIAB currently states that a general tax petition must be filed within 30 calendar days from the mailing date on EDD's notice.

For a jeopardy assessment, the filing period is 10 calendar days.

Do Not Assume You Have 30 Days

Read the notice you actually received. The type of EDD determination or assessment controls the applicable procedure and deadline.

What if the Petition Is Late?

CUIAB states that the filing period for a general tax case may be extended upon a showing of good cause.

CUIAB also instructs a taxpayer filing a late petition to explain why it was filed late.

A jeopardy assessment is different. CUIAB states that the 10-day filing period for a jeopardy assessment cannot be extended.

What Information Should an EDD Tax Petition Include?

CUIAB's current instructions identify information that should be included in a tax petition.

That includes:

  • Your name and mailing address
  • Your EDD employer payroll tax account number
  • Your telephone number
  • The date of EDD's notice
  • A statement explaining the reasons for the petition
  • Any need for an interpreter or special accommodation
  • Your signature
  • The date the petition was signed

The petition should identify what is being challenged and why the employer believes reassessment is appropriate.

Does the Petition Need to Be a Complicated Legal Brief?

The initial petition does not need to become a lengthy recitation of every document and argument in the case.

The immediate objectives are to identify the assessment, clearly state that it is disputed, explain the grounds for requesting reassessment, and protect the filing deadline.

The factual and documentary record can continue to be developed as the case proceeds.

What Should the Grounds for Reassessment Say?

The grounds should correspond to the actual disputed issues.

Depending on the case, those issues might include:

  • Workers were properly classified as independent contractors
  • EDD applied the wrong worker-classification standard
  • A statutory classification exception applies
  • EDD incorrectly characterized the company's usual course of business
  • Payments treated as wages were not wages
  • The auditor included incorrect workers or payments
  • The assessment contains computational errors
  • Reported payroll was not properly credited
  • The assessment includes disputed penalties

The appropriate grounds depend on the facts of the particular audit.

Can You Submit Additional Evidence After Filing?

Yes.

EDD's Petition for Reassessment guidance specifically states that a petitioner may submit additional information to EDD before the hearing, and that information may lead to an adjustment of the assessment.

This is an important practical point.

You do not necessarily need to finish every aspect of the factual development before protecting the petition deadline.

What Happens After CUIAB Receives the Petition?

CUIAB describes the process generally as follows:

  1. CUIAB receives the petition.
  2. EDD is notified and responds to the petition.
  3. The petition is scheduled for a hearing.
  4. A Notice of Hearing is issued.
  5. An Administrative Law Judge conducts the hearing.
  6. The judge issues a decision.

What Is EDD's Answer to the Petition?

After the petition is referred to EDD, the Department prepares an Answer to Petition.

The Answer provides EDD's response to the employer's challenge and becomes part of the petition process.

Receiving the Answer is another useful point to evaluate exactly where the parties disagree and what evidence may be needed.

Will There Be a Hearing?

If the dispute remains unresolved, the case can proceed to a formal hearing before a CUIAB Administrative Law Judge.

CUIAB states that the Notice of Hearing is provided at least 20 days before the hearing date.

At the hearing, the parties may present evidence and witnesses and question opposing witnesses.

Can a CPA Represent an Employer?

Yes.

EDD's published Petition for Reassessment guidance states that an employer may represent itself or may be represented by a CPA, accountant, attorney, or other representative.

In employment tax disputes, the case can involve both classification rules and detailed accounting evidence, including payroll reports, general ledger accounts, Forms 1099, Forms W-2, and audit calculations.

Does Filing the Petition Stop Interest?

No.

EDD states that filing a Petition for Reassessment does not suspend the accrual of interest on the assessed amount.

That means an employer challenging an assessment should consider the financial consequences of allowing interest to continue while the dispute proceeds.

Can You Pay the Assessment and Still Fight It?

Yes.

EDD states that full payment of the disputed assessment is not an admission that the amount is owed and does not eliminate the right to continue the dispute.

Under the procedure described by EDD, payment after the petition has been filed can cause the Petition for Reassessment to convert into a petition concerning a refund of the disputed amount.

What I Review Before Filing an EDD Petition

The filing deadline comes first. But I also want the petition to reflect the actual issues in dispute.

My initial review generally includes:

  • The Notice of Assessment
  • The mailing date and petition deadline
  • The auditor's schedules
  • The categories of workers included
  • The classification standard EDD applied
  • Potential statutory exceptions
  • The ABC test or Borello analysis when applicable
  • Contracts and invoices
  • Forms W-2 and Forms 1099
  • Payroll and accounting records
  • The calculation of additional wages
  • Penalties and interest

Petition for Reassessment vs. Informal Discussions With EDD

Continuing to communicate with EDD does not mean the formal petition deadline should be ignored.

An employer may continue providing information and discussing the assessment while the formal petition process is underway.

Those are complementary processes, not substitutes for one another.

Need to File an EDD Petition for Reassessment?

Boulanger CPA and Consulting PC represents California employers in EDD payroll tax disputes involving assessments, independent contractors, worker classification, audit calculations, and petitions for reassessment.

Schedule an EDD Assessment Consultation

EDD Petition for Reassessment FAQs

What is an EDD Petition for Reassessment?

A Petition for Reassessment is the formal process used to challenge certain EDD employment tax assessments through the California Unemployment Insurance Appeals Board.

How long do I have to file an EDD Petition for Reassessment?

CUIAB states that a general tax petition generally must be filed within 30 calendar days from the mailing date on EDD's notice. A jeopardy assessment has a 10-calendar-day filing period.

Where do I file an EDD Petition for Reassessment?

The petition is filed with the California Unemployment Insurance Appeals Board's Office of Tax Petitions.

Can I provide more evidence after filing the petition?

Yes. EDD states that additional information may be submitted before the hearing and that the information may result in an adjustment to the assessment.

Does filing a Petition for Reassessment stop interest?

No. Filing the petition does not suspend the accrual of interest on the assessed amount.

Can a CPA represent me in an EDD tax petition?

Yes. EDD's published guidance states that an employer may represent itself or be represented by a CPA, accountant, attorney, or other representative.