Construction sites are at risk of EDD Site Sweeps.

Did you know that the Employment Development Department (EDD) regularly conducts site sweeps.  These sweeps can catch any worker whose license is expired or who is performing work outside the scope of their licensing and automatically trigger a full-scale EDD audit of the hiring entity.

With the complexity of construction jobs and the number of subcontractors employed to complete those jobs, it can be difficult to keep track of workers’ licensing status.  An expired license or one that has been suspended, even for unrelated reasons, can be enough to cause EDD to open an investigation into the construction company employing that worker.

In the case of most EDD audits, reclassification comes with heavy fines and penalties as well as the possibility of criminal charges for insurance fraud from lack of workers’ compensation insurance. The better solution is easy.

With a got1099 report you can have an expert evaluation of your workers’ status, determining whether CSLB or EDD would likely classify them as a W-2 or allow them to remain as 1099 contractors.  Additionally, the report can provide monthly updates on license status for your workers, giving you the information you need to make the right decision long before the prying eyes of the Employment Development Department auditors have a chance to dig into your business practices.