INVOICES FROM SOLE PROPRIETOR VENDORS OR INDIVIDUALS - 8422.116-DEC-2008

(Revised: 12/2008)

Departments 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).

Departments must report to the EDD using the Report of Independent Contractor(s) form, DE542, within twenty days of either (1) making payments of $600 or more or (2) entering into a contract for $600 or more with an independent contractor in any calendar year, whichever is earlier.  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: EDD Homepage. See SAM Section 7930.