What is EDD doing?
In 2002, EDD found that every company using or following a third-party contract provider scheme was out of compliance with California payroll tax laws. In 2003, EDD spearheaded a multi-agency education and enforcement initiative to level the playing filed for the courier and messenger industry in California. The initial effort relied heavily on seminars offered throughout the State. An investigation and audit effort followed the seminars. Between November 2003 and November 2007, EDD audited over 480 courier businesses that operate in California. These audits found over 23,600 drivers misclassified as independent contractors who should have been reported as employees. The audits resulted in the issuance of tax assessments that totaled over $52.6 million, including penalties and interest. EDD will continue to provide education and conduct enforcement efforts in partnership with other State and Federal agencies.
