Here’s Why You Should Never Ignore an EDD Audit

Ignoring a problem doesn’t make it go away, especially with the EDD. Keep reading to learn why you should never ignore an EDD audit. Furthermore, understand the right steps to take when you receive an audit.

The Consequences of Ignoring an EDD Audit

An EDD audit isn’t a document you can discard or put off investigating. The main reason why you should never ignore an EDD audit is that it can lead to hefty fines and penalties. Without legal representation or acknowledging the paperwork, the EDD can pursue further action that affects your business’s finances. Essentially, an audit doesn’t go away, and the longer you put off legal action, the more you risk paying expensive fines.

The Right Steps To Take With an Audit

It’s important to understand that EDD audits are time sensitive, and you only have a short window to pursue legal action. To handle this situation, follow these critical steps:

  • Thoroughly read the audit document. When you first receive the audit, thoroughly read the information. Pay attention to deadlines and take note of the documents they need from you. If they need to schedule an appointment with you, call the department to set a meeting time.
  • Collect the requested information. It’s normal for the EDD to request various documents during the course of your audit. For instance, a DE231TA is a standard form you will receive. Prepare employee tax records, tax reports, and other files for review.
  • Understand your rights. As a California employer, you have rights surrounding the audit. You have the right to receive accurate information from the EDD, and they must answer your questions. Additionally, you can appeal the department’s decision on the audit.
  • Pursue legal assistance. If you disagree with the EDD’s actions, you can appeal the decision in court. It’s best to hire an audit lawyer to help navigate your case. Consulting with an experienced professional is beneficial!

Avoid Future EDD Audits

Misclassifying employees is a quick way to get on the EDD’s radar. To avoid future audits or trouble with the department, it’s best to follow good practices. Documenting everything, producing accurate tax records, and accurately classifying employees are several ways to stay in good standing. Don’t risk future troubles that will lead to penalties and fines.

Receiving the Right Help

An EDD audit Lawyer is there to help you battle the EDD. Pershing Square Law Firm is a team of experienced professionals who will represent you! During this troubling time, receiving the right assistance is crucial. Luckily, you can receive the best help with our team!

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