December 5, 2023

2023 Reminder Letter – EDD forms DE-34 and DE-542

Dear Clients and Friends,

If you own a business in California please be aware of these two separate reporting requirements to EDD:

-Form DE-34: All new or rehired employees must be reported to EDD within 20 days of their start-of- work date.

-Form DE-542: Any business that is required to file a federal Form 1099- NEC for services received from an independent contractor who is an individual or a sole proprietorship is required to report independent contractor information to the EDD within 20 days of paying/contracting for $600 or more in services in each calendar year.

This is in addition to filing an annual Form 1099-NEC Independent contractors who are corporations, partnerships, LLP’s and LLC’s are exempt from this reporting requirement.

Here are links to these two forms on EDD’s website:

Please note that because of the 20 days filing requirement our office does not automatically file the above forms for you since we normally don’t have access to your payment data within such short period of time. You either need to institute your own ongoing internal system for timely filing of these forms or if you need our assistance then you need to provide us with the required documentation early enough where we can meet the 20 days filing deadline.

However, if our firm processes your “live” payroll we will file Form DE-34 on your behalf since we have the information about your new employees but not the Form DE-542 for reporting of independent contractors.

If you have any questions about the above two forms please contact our office for more information.