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 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 -File or by accessing https://eddservices.edd.ca.gov. (Minimum browser requirements: Internet Explorer 6.0 or Netscape 7.2); or
• Submit on magnetic media using a CD-R, 31/2 inch diskette, or IBM 3480 or 3490 tape cartridge. Please call the Magnetic Media Unit at (916) 651-6945 or if you have the Adobe Acrobat Reader, download the Magnetic Media Reporting Requirements for Independent Contractor Reporting Program (DE 542M); or
• Submit a paper Report of Independent Contractor(s), DE 542. A fill-in DE 542 can be downloaded if you have the Adobe Acrobat 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.

For More Information About Independent Contractors or ICR:

Fact Sheet – Independent Contractor Reporting Requirements

Form 1099-MISC Filing Requirements (IRS)

Frequently Asked Questions About Independent Contractor Reporting

Taxpayer Assistance Center – (916) 657-0529 (press “1” twice) or 1-888-745-3886

What Is the Difference Between a Common Law Employee and an Independent Contractor?

Other EDD Payroll Tax Information