Changes for Independent Contractor Income Reporting in California
As part of its effort to keep track of parents who are delinquent or dodging child support payments, California requires that anyone conducting business in California and which retains independent contractors (called “service providers”) must report the service provider to the state within 20 days after the service provider earns income totaling $600.00 or more in a year, or when the business enters a contract with the service provider which calls for paying the independent contractor $600.00 or more.
For details of the independent contractor registration requirement go to http://www.edd.ca.gov/pdf_pub_ctr/de542b.pdf and http://www.edd.ca.gov/payroll_taxes/new_hire_reporting.htm.
As of March 1, 2011, California made reporting easier by updating its registration process to provide for electronic registration through its eServices for Business Program. Electronic registration is available at: https://eddservices.edd.ca.gov/.