938p Form
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What is EDD Form DE 6028P?
DE 6028P – PIT Abatement Declaration If an employer has timely filed W-2s and 1099s this form can be used in resolving and settling a current EDD audit. Very often the PIT portion is the largest single element composing the Notice of Assessment.
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What is an EDD assessment?
The EDD's Notice of Assessment serves as official notice of the EDD's determination to the employer as provided by the California Unemployment Insurance Code (CUIC) (leginfo.legislature.ca.gov/faces/ codes. xhtml). The employer should begin to report misclassified workers for state payroll tax purposes.
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How do you deal with an EDD audit?
The first step you should take is to contact a tax attorney, preferably one who has experience with EDD audits. The attorney should advise you to gather your records and other relevant documents in order. Having these documents organized will be a big help in your defense.
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Why did I get a Notice of Assessment from EDD?
If the Employment Development Department (EDD) audits the employer's business records and determines that the employer failed to properly withhold California Personal Income Tax (PIT) from the wages paid to the workers, the EDD will issue an assessment for the PIT that should have been withheld.
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What can trigger an EDD audit?
As a result, EDD audits are typically triggered by: The EDD Verification Process. ... Independent Contractor Filing for Unemployment. ... Late Filing of Payroll Tax Returns or Late Payment of Taxes. ... Failing to Pay Wages on Time or Collect and Remit SDI and PIT.
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Is EDD audit serious?
What happens if I get audited by EDD? If you get an EDD audit, you could be liable to face penalties and interest on taxes that you owe. These sorts of fines include a percentage of unpaid taxes, set dollar amounts for each case of unreported employees or independent contractors, among others.
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