| Forms to use | |
Report of New Independent Contractor |
| Who must be reported? |
|
Anyone who requires a 1099-M, regardless of the worker's sex or whether they have children.
That means, the contractor is not incorporated and you have or plan to pay them $600 or more.
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| Clarification on independent contractor status |
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You can request an official determination as to whether a worker is an independent contractor
or an employee by filing form DE-1870 with the Employment Development Department. Visit
http://www.edd.ca.gov/Payroll_Taxes/Forms_and_Publications.htm for the form.
|
|
| Due date |
|
The earlier of: 20 days of entering into a contract involving more than $600 OR
20 days of paying an independent contractor $600 or more.
|
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| Exceptions |
|
None. If you are purchasing an existing company, any independent contractors are considered new hires and
must be reported using DE-542.
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|
| How to submit |
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There are three ways to submit this information:
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| Questions |
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Visit http://www.edd.ca.gov/payroll_taxes/New_Hire_Reporting.htm
or call (916) 657-0529.
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