INDEPENDENT CONTRACTOR REPORTING - 8422.18

(Renumbered from 8422.116)

Agencies/Departments shall report to the Employment Development Department (EDD) within 20 days when making payments of $600 or more or entering into a contract for $600 or more with an independent contractor (i.e., sole proprietors/individuals or single member LLCs) in any calendar year, whichever is earlier. For the calendar of reports, see SAM Section 7930.

For agencies/departments using FI$Cal, the State Controller’s Office Supplier Management and Reporting Team (SMaRT) will report payments and contracts subject to independent contractor reporting of $600 or more to the EDD.

Agencies/Departments deferred/exempt from using FI$Cal must identify independent contractors subject to reporting as defined by the EDD and comply with all reporting requirements.

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 to a good cause. If the failure to report is intentional or if the report is falsified, a penalty of $490.00 may be charged.

Additional information, including reporting requirements and the Report of Independent Contractor(s) form, DE 542, is available on the EDD website.