Please enable JS

Payroll Services for Contractors California

Payroll Services for Contractors California

If you are doing business in California you are subject to certain legal and taxation regulations which include both Federal and State laws. If you have regular employees working for you in California you may be registered with EDD furnishing all the information and taxes on a regular basis; which the job easy and routine. But if your business activity is rather occasional and you employ the services of independent contractors in California, following all the legal obligations becomes more difficult. How to make payment to such contractors and whom and how to report this business activity becomes significant question for you.   You should be aware whether or not you come under the status of a “service recipient”. If you are a service recipient who has payed or contracted to pay compensation to an independent contractor who is not an employee, you are obligated to file Federal form 1099-MISC for such services.   Besides this, you are required to report independent contractor information if you hire an independent contractor and following conditions are applied:

  • You are required to file Form 1099-MISC
  • You pay the independent contractor $600 or more or enter into contract for the same.
  • The independent contractor is an individual or sole proprietorship.
  If your business in California transacts electronically, you are required to submit two monthly reports within a gap of 12 to 16 days.   For reporting to EDD you have to use DE-542 which requires details of ‘service recipient’, ‘service provider’ and contract.   Contractor Payroll services California at JDT makes all the above happen for you with minimum effort and maximum accuracy. At JDT we have a team of highly experienced professionals who understand the difficulties a ‘service recipient’ faces in fulfilling these obligations in California. We have developed the easiest and fully automated payroll services California that makes Payroll management hassle free by customizable payment options, flexibility of paying independent contractors or employees or both. It also makes automatic calculation of bonuses, withholdings and taxes etc.   Further, the RunPayroll keeps you updated with any changes in the taxation, reporting rules or procedures. And to top it all, you are assisted by a friendly US based team of customer service experts. At JDT we ensure that we provide you the best Payroll Tax Services california so that your business grows in California without you worrying about contractor Payrolls ever again.