Is it Possible to Settle with the EDD Auditor? So when we have a lot of clients who ask us is it possible to settle and what they mean is "Can I Just throw a number at them and make this go away? The answer is NO you can't throw a number out at the EDD auditor and say" Hey i'm going to give you 20 grand will you go Fly a Kite? It just doesn't work like that but where you can negotiate with the auditor is the auditor is motivated to try and close the case agreed they want you to agree to the results the audit, because the audit goes into appeals they got to do more work so the auditor is writing a report it doesn't need to get approved by their manager it does need to get approved by sacramento so they're not going to lie down for you but they will negotiate and give and take particularly on the penalty portions of the liability which as i've explained in earlier videos can get really really high so a lot of the back and forth a lot of the negotiation that happens is on the penalty portion of the liabilities or at least from an independent contractor perspective putting people into buckets for classification these people are clearly independent contractors these people are clearly employees and these people are kind of in the middle so with the people that are in the middle you can negotiate with the auditor back and forth particularly if you think you're going to have an agreed audit. The trick is is you want to be very active in the negotiations with the edd you don't want to just hand everything over to the auditor and have them write a report you want to go through you want to do their work for them essentially want to turn the audit in and then have them come back to you and say well we don't agree with this at least it gives you an avenue for presenting information with some level of superiority, so that's the best way to negotiate or to settle with the edd auditor in that context and that's where you're really going to have the most results in getting your liability down and then minimizing your risk.