Q&A: Do I have to report independent contractors to EDD?

All businesses and government entities who enter into a contract with an individual for $600 or more in any calendar year, or who make payments totaling $600 in any calendar year to an individual must report to the Employment Development Department within 20 days, whichever is earlier. This reporting program is designed to locate parents who are delinquent in their child support obligations.

Any business or government entity that is required to file a Federal Form 1099-MISC for services performed by an independent contractor must comply. No reporting is required when hiring another business such as a corporation, general partnership or limited liability company.

Reports are made on Form DE – 542, and must include:

The start and the expiration dates of the contract (unless the contract is ongoing)
The hiring business or government entity's federal employer identification number, California employer account number and Social Security account number (if applicable)
The business name, address and telephone number. Also reported are the independent contractor's first name, middle initial, last name and Social Security number.

Do I have to report independent contractors to EDD?

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