Businesses with multiple 1099s may have inadvertently opened themselves up to EDD audit or investigation.
California business owners are familiar with the ever-present threat of an EDD audit. EDD audits businesses for a variety of reasons.
Last year, 15 unemployed Californians brought a lawsuit against Bank of America for freezing their unemployment benefit debit cards. U.S. District Judge Vince Chhabria ruled in favor of the plaintiffs and prohibited B of A from freezing unemployment debit card accounts that were flagged as fraudulent through their “automated fraud filter.”