EDD Update Possible Recession.

• Author: Counts, Jim

The Employment Development Department (EDD) routinely tracks certain data that indicates if a possible recession could be coming soon. In light of that, EDD has been given permission to hire an additional 300 employees to process unemployment insurance (UI) benefit claims.

Job Sharing

When a downturn occurs, an employer may consider using the EDD work sharing program. In general terms, an employer can reduce the total number of hours to be worked and then reduce the hours worked for each employee in a group of employees. Each employee should qualify for UI benefits while the employer would continue to have the employees working for them.

When business picks up the employer would not have to go looking for qualified new employees as they are already working for the employer, allowing the employer to more easily gear up to normal workloads.

Program requirements and conditions are explained at https://edd.ca.gov/en/Unemployment/Work_Shariug_Program.

Disasters

Employers statewide directly affected by the winter storms may request up to a two-month extension of time from the EDD to file their state payroll reports and/or deposit payroll taxes without penalty or interest. This extension may be granted under California Unemployment Insurance Code (CUIC) Section 1111.5. A written request for extension must be received within two months from the original delinquent date of the payment or return.

For more information, visit https://edd.ca.gov/en/Payroll_Taxes/Emergency_and_Disaster_Assistance_for_Employers.

Exam and Collections Update

EDD has added a new service called Box.com, through which employers and their representatives can provide large files to EDD. Only certain collectors and auditors have access and will initiate the request with the employers to submit the files through the Box application. Files (up to 15 GB) may be provided going in both directions and various types (PDF, Word, PowerPoint, video and images) may be posted. The system retains the files for 90 days.

EDD does not offer this service for the purpose of responding to notices unless they are already working with an auditor/collector.

Fraud

Some employers and tax practitioners wonder what the EDD is doing to light fraud and when it occurs, to recover any fraudulent payments.

EDD is approaching fraud from an enterprise perspective and information is shared across branches as soon as they see it in one place. EDD is actively working with local district attorneys on recovering...