Independent Contractor Reporting

Any business or government entity that is required to file a federal Form 1099-MISC for services received from an independent contractor is required to report specific independent contractor information to the Employment Development Department (EDD). This information will be used to locate parents who are delinquent in their child support obligations. The independent contractor reporting requirements apply if you hire an independent contractor and the following statements all apply:

• You are required to file a Form 1099-MISC for the services performed by the independent contractor.
• You pay the independent contractor $600 or more OR enter into a contract for $600 or more.
• The independent contractor is an individual or sole proprietorship.

If all the above statements apply, you must report the independent contractor to EDD within 20 days of paying/contracting for $600 or more in services. You are not required to report independent contractors that are corporations, general partnerships, limited liability partnerships, and limited liability companies.

How to Report:

You may use any of the following to report independent contractor information:

• Submit a Report of Independent Contractor(s) (DE 542) electronically with e-Services for Business (Minimum browser requirements: Best viewed using Internet Explorer 8.0 or higher. If you do not have any of these versions, they can be downloaded from http://www.microsoft.com/windows/internet-explorer/); or
• Submit a paper Report of Independent Contractor(s) (DE 542). A fill-in DE 542M can be downloaded if you have the Adobe Reader. Forms may also be ordered on the Internet Order Form or by calling our toll-free number (888) 745-3886 or visiting your nearest Employment Tax Office. You may also print your data directly from your computer to the DE 542 by following the Print Specifications.
• You may create your own form with the required information.

For More Information About Independent Contractors or Independent Contractor Reporting:

• Fact Sheet - Independent Contractor Reporting Requirements
• Form 1099-MISC Filing Requirements (IRS)
• FTB Nonresident Withholding Requirements and Information
• Frequently Asked Questions About Independent Contractor Reporting
• Taxpayer Assistance Center (888) 745-3886
• What Is the Difference Between a Common Law Employee and an Independent Contractor