Payroll Tax Compliance
The EDD operates similarly to the IRS in that businesses are required to file and pay payroll state taxes quarterly. When there is a missed deposit or only partial payment, the balance due is turned over to an EDD collector, whose job is to collect the taxes due plus interest and penalties.
Because withheld PIT technically belongs to the taxpayer employee, the EDD is extremely aggressive against business owners who fall behind on required payroll tax deposits, and the leniency that was once offered is virtually nonexistent today. Even just missing one or two deposits can initiate collection measures or even put a business at risk of an audit.
To recoup unpaid payroll taxes, the EDD can directly harass owners and other responsibility parties for payment, levy bank accounts and file tax liens against businesses, which, because it is a matter of public record, might negatively impact operations and business reputation. In extreme cases, the EDD can shut down a business and criminally prosecute the owners.
Seek Assistance for Issues with California EDD, Contact Brown, PC
Dealing with EDD collectors and agents can be difficult. The tax attorneys of Brown, PC have a strong track record of working with the EDD as well as the thorough knowledge of internal EDD procedures and California employment tax laws. We represent clients in Los Angeles and throughout California. Please contact the firm online or by calling 424-252-1100 to speak with one of our state tax attorneys.