Employer Question EDD

[kgyouandme]

What is the name of your state? California

My mother is being audited by the EDD, because an ex independent contractor tried to file for unemployment after being asked to leave. This ex worker's aunt works for the local EDD and it has opened a can of worms. My mother is under alot of stress and it kills me to see her like this. She feels so helpless. She runs a small business and has contributed to the youth of the community. I realize it's her business practices in question, yet it seems so unfair. She is not living high on the hog and was never out to screw the government. SHe wants to do what is right and is trying to comply with their unclear demands. This woman wants all of her business records for the past three years. THis woman is friends with this ex workers aunt.

My question is - Are there any tax advocates out there? Does this auditor have anyone that THEY have to answer to? She has said, in no uncertain terms, that she's out to close all business like my mother's. I really can't believe she can have this much power. My mother can't afford a lawyer.

If I should post this in another forum, please let me know.

 

[pattytx]

Can she afford $50 or so for a consultation with an attorney? At least he/she could advise relatively quickly what steps she can take on her own. Contact the local Lawyer's Referral Service of the American Bar Assoc.

 

[tranquility]

While there may be some abuse here, even if you prove it you will still have to deal with the underlying issue. Was the person an employee or an independent contractor?

That is a very fact-sensitive test that seems to lean towards people being employees. Depending on the business and number of employees, your aunt may have a problem. Maybe not so much with the EDD, but with the feds when they find out.

I agree with pattyx, do what you can to see a lawyer. Your liability may be much more than you are anticipating.