Employment Development Department (EDD) Representation Ventura

The EDD Process and What to Know

If you have been selected for an EDD audit, you may not know what this means. If you have never been through an audit before, this is all likely new to you. The EDD process is not simple and there will be a lot of items under review in your business. Traditionally, the EDD will audit you when they believe that you have not paid your payroll taxes or when there is a discrepancy in the way an employee is characterized.

If you have made a mistake, we get it, but that does not mean the EDD will. In fact, they do not look at these innocent mistakes as just a misstep and they often slap on fines and penalties.

The first step in an EDD audit is the auditor will come out to your business and have an interview with you. We will be present during this time and the auditor will explain the reason you are being audited, what to expect, and what your role in the audit is.

Once the interview is done, the auditor will want to look at your company’s books and payroll. They will look for errors and mistakes that were made. Once the audit is completed, you will be notified via mail of the results. There are several results that can come from the audit and can include overpayment, underpayment, both overpayment and underpayment, and no charge at all.