California EDD Audit Resources for Business Owners
Practical CPA-led guidance on California EDD payroll tax audits, worker classification, independent contractors, audit records, assessments, petitions, and appeals.
Understand the EDD Audit Process Before You Respond
An EDD payroll tax audit can involve much more than reviewing payroll tax returns. Depending on the examination, the auditor may review worker classification, independent contractor payments, Forms 1099, payroll records, general ledger accounts, bank records, contracts, tax returns, and other financial information.
This resource library follows the audit from beginning to end: why an audit may start, what EDD requests, how worker classification is analyzed, how assessments are calculated, and what happens if the employer disagrees.
Start With the Complete EDD Audit Guide
If you are not sure where to begin, our complete guide walks through the California EDD payroll tax audit process from the initial notice and records request through worker classification, assessment, petition, and appeal.
Read the Complete EDD Audit GuideCore EDD Audit Resources
EDD Payroll Tax Audits
Learn what EDD examines, how the audit process works, what records may be requested, and how CPA representation can help.
EDD Independent Contractor Audits
Understand what happens when EDD questions 1099 workers, contractor payments, worker classification, and the records supporting those relationships.
EDD Assessments & Appeals
Learn how California employers can challenge disputed audit findings, assessments, worker classification determinations, and payroll calculations.
Starting an EDD Audit
These resources are most useful when you have just received an EDD notice, questionnaire, records request, or audit appointment.
Payroll Records & Audit Testing
EDD can compare payroll reports with California filings, federal payroll returns, Forms W-2, Forms 1099, the general ledger, and other accounting records.
Worker Classification & Independent Contractors
Worker classification is one of the most important issues in many EDD audits. These guides address 1099 workers, the ABC test, Part B, dual W-2/1099 treatment, and broader classification issues.
- EDD Independent Contractor Audit Guide
- EDD Worker Classification Audits
- California ABC Test in an EDD Audit: A, B and C Explained
- Part B of the California ABC Test: Outside the Usual Course of Business
- Can Someone Receive Both a W-2 and 1099 From the Same Employer?
- 1099 or W-2? California Worker Classification and EDD Issues
EDD Assessments, Penalties & Disputes
If an audit results in additional liability, the next step is understanding the assessment, reviewing EDD's calculations, and protecting any applicable petition or appeal rights.
EDD Petitions & Appeals
Formal EDD tax disputes generally move through the California Unemployment Insurance Appeals Board rather than the California Office of Tax Appeals.
Where Should You Start?
If you have just received an audit notice, begin with the DE 996Q guide and the records request guide.
If EDD is questioning 1099 workers, begin with the independent contractor audit guide and the ABC test guide.
If you already have an assessment, begin with the Notice of Assessment guide and the Petition for Reassessment guide.
Need Help With a California EDD Audit?
If your business has received an EDD audit notice, records request, worker classification determination, or assessment, Boulanger CPA and Consulting PC provides CPA-led representation for California employment tax audits and disputes.
Schedule an EDD Audit Consultation