California, Federal Payroll Tax Problems + Affordable Representation + Affordable Former Agents

February 11, 2016
Written by: Jim Magary

 

Fresh Start Tax

 

We are a full service tax firm that specializes in federal and state tax matters especially those who have California business tax problems. Since 1982.

 

We can help any taxpayer that has 941 federal tax issues as well as the state of California

We have over 206 years of professional tax experience in over 65 years of working directly for the government in the local, district, and regional tax offices.

We are A+ rated by the Better Business Bureau has been practicing our professional craft since 1982.

In California payroll taxes are administered by the California Employment Development Department also know as the EDD.

Many of the issues that arise in the state of California are due to the classification problems that is employees or independent contractors.

The IRS form SS8 is a comprehensive list of questions that employers can find out whether people who work for them are employees or independent contractors.

Below you will find some of the questions that may relate to employee or independent contractors.

How did the worker obtain the job (bid, application, employment agency, or other

Description of the work done by the worker

Explanation of why you believe the worker is an employee or independent contractor
 :

Training and instructions

Type Work assignments

Problems and complaints

Daily routine of person

Substitutes or helpers

Specific questions to determine financial control; for example:

Who provides supplies and materials

Who provides leased equipment

Are worker expenses reimbursed

Type of pay received (salary, commission, hourly wage, piece work, lump sum, or other

Who does the customer pay

Who have ultimate control of the person.

Economic loss/financial risk for worker, right to control time in hours.

Ability to hire and fire

 

The IRS generally applies a 20 factor test.The SS8 form will give you the the questions.

Usually, the California Employment Development Department focuses more on the right of the principal to control the manner, mode, method and means of performing the details of the work.

Is there fraud involved?

 

Some California payroll tax audits can lead to a finding of payroll tax fraud by the EDD or the IRS auditors if both Agencies are involved.  As a former IRS revenue officer I referred more than one Corporation for payments in cash or people off the books and records.

should you have questions or concerns call us today for a free initial tax consultation and we will walk you through the process of California or federal payroll tax problems.

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