SOLE PROPRIETOR INDIVIDUAL VENDOR INVOICES - 8422.116
Agencies/departments deferred/exempt from using FI$Cal must determine if payments on invoices received from individuals or sole proprietor businesses are subject to independent contractor reporting as defined by the Employment Development Department (EDD).
Agencies/departments must report to the EDD using the Report of Independent Contractor(s) form, DE 542 or online e-Services for Business, within twenty days of either:
(1) Making payments of $600 or more
(2) Entering into a contract for $600 or more with an independent contractor in any calendar year, whichever is earlier.
For FI$Cal agencies/departments, FI$Cal Vendor Management Group (VMG) will report all contractor payment of $600 or more to EDD.
This information is used to assist state and county agencies in locating parents who are delinquent in their child support obligations. Additional information and the form are available at the EDD website. See SAM section 7930.
Agencies/departments may be charged a penalty of $24.00 for each failure to report within the required time frames, unless the failure is due for good cause. If the failure to report is intentional or if the report is falsified, a penalty of $490.00 may be charged.