Anonymous asked in Business & FinanceTaxesUnited States · 6 months ago

Does EDD know about income that is being earned before you file the 1099?

Does EDD know about income you are earning before you file the 1099 at the end of year? and do you need to report those earnings even though tax isn't taken out right now

4 Answers

  • Judy
    Lv 7
    6 months ago

    They usually don't know before the 1099 is issued - but you need to report it to them when you're doing the work or you're comitting fraud

  • 6 months ago

    Employers and people who hire independent contractors have to notify EDD within 20 days of a new hire. This is principally for child support enforcement. Income on a 1099 is not reported to EDD at all. Wages are reported to them quarterly. You don t have to do anything.

    • A Hunch
      Lv 7
      6 months agoReport

      Nope, I haven't but have now. But I don't know a single company that has a process to notify EDD about IC. So I'll assume that every employer who hires IC are just going to pay the $24 if asked than spend money creating this process.

  • NA
    Lv 7
    6 months ago

    Many states require 1099-misc income to be reported by the payer quarterly--to catch unemployment cheats.

  • 6 months ago

    No, EDD does not know about the earnings until tax time

    Yes, you have to include this money on your weekly claim form.

    Why? Because it is unemployment fraud if you don't. When you are caught you will be ineligible for receiving UI for 3-10 years, you will have to pay the money back, and depending on the severity of the fraud, you may have criminal charges.

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