Steve Sims EA llc


Announcements and Updates

California Employment Development Department (EDD) may require you to report “Independent Contractor” payments above $600 to them within 20 days of making payment.

The information you provide to the EDD will increase child support collection by helping to locate parents who are delinquent in their child support obligations.

  • Who has to report?

Any business or government entity (defined as a "service-recipient") that is required to file a federal Form 1099-MISC for services performed by an independent contractor (defined as a "service-provider") must report.

  • Who is a service-recipient?

A service-recipient is any business or government entity that is required to file a federal Form 1099-MISC for services performed by an independent contractor. A service-recipient means any individual, person, corporation, association, or partnership, or agent thereof, doing business in this state, deriving trade or business income from sources within this state, or in any manner in the course of trade or business subject to the laws of this state. A service-recipient also includes the State of California or any political subdivision thereof, including the Regents of the University of California, any charter city, or any political body not a subdivision or agency of the state, and any person, employee, department, or agent.

  • Who is a service-provider?

A service-provider is defined as an independent contractor; an independent contractor is any individual who is not an employee of the service-recipient for California purposes and who receives compensation or executes a contract for services performed in or outside California.

  • What information do I report?

You are required to provide the following information.

Service-Recipient (Business or Government Entity):

  • Federal employer identification number (FEIN)

  • California employer payroll tax account number (if applicable)

  • Social Security number (SSN)

  • Service-recipient name/business name, address, and phone number

Service-Provider (Independent Contractor):

  • First name, middle initial, and last name

  • Social Security number

  • Address

  • Start date of contract (if no contract, date payments equal $600 or more

  • Amount of contract including cents (if applicable)

  • Contract expiration date (if applicable)

  • Ongoing contract (check box if applicable)

  • When do I have to report?

As of January 1, 2001, you must report information to the EDD within 20 days of either making payments totaling $600 or more or entering into a contract for $600 or more with an independent contractor in any calendar year, whichever is earlier. Report each independent contractor once each year.

Mail or fax your paper DE 542 form to:


Employment Development Department

P.O. Box 997350, MIC 96

Sacramento, CA 95899-7350

Fax: 916-319-4410

Click here for more information: