How Does the EDD Settlement Process Work?

How Does the EDD Settlement Process Work? So let's say you have an audit and the audit doesn't go well and you file an appeal before you get into the appeals process you have the option of going to EDD settlement and so what that takes is you are more likely your attorney is going to draft a written settlement request and they're gonna state their case and why they believe that the EDD should settle this issue so you want to basically do the best job that you can and put in together the biggest package you can to get to the EDB because the EDD settlement officer is going to take the audit report it's an audit and they're going to take your settlement offer and they're gonna look at it and they're gonna compare the two and then they'll probably come back to you with questions your dialogue in presenting though often the EDD settlement officer is allowed to consider the risk of litigation so they're trying to get cases out of the appeals process so usually particularly if there's a favorable resolution they're willing to settle in most cases with the EDD on payroll tax liabilities particularly with independent worker classification there will be an omission and a requirement than any errors that were uncovered during the audit can correct it for the future so just know in advance that might be a condition to be de settlement and settlement is not going to eliminate your liability entitlement entirely settlement a settlement and oftentimes particularly in the context of illegal settlement both sides don't get exactly what they want so if you understand that and keep that framework in mind during the process settlement can be a very good tool at the EDD level in order to dismiss cases you.

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Sam Brotman, JD, LLM, MBA

Owner and Director of Legal
Brotman Law

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