News Notes: Independent Contractor Reporting Reminder

Beginning Jan. 1, 2001, you’re required to report independent contractor earnings information to the Employment Development Department. The new law is designed to track down parents who are delinquent in paying child support. Private and public employers need to report payments made to independent contractors if you expect to pay at least $600 to the contractor in a calendar year. Although the EDD must keep the information confidential, the new rules could trigger audits of your classification of workers as independent contractors.