Received a Notice of Assessment from Employment Development Department California?

What is an EDD California Notice of Assessment?

The Notice of Assessment is essentially a bill.

It’s the EDD’s way of telling you that they believe your business owes unpaid payroll taxes, penalties, or interest. This could stem from a payroll audit, missing filings, or discrepancies in reported wages.

Think of it as a red flag—one you don’t want to ignore.

Why Did You Receive A Notice of Assessment?

The California EDD may issue this notice for a variety of reasons:

1. Missing or Incorrect Filings: If your payroll tax returns were late, incomplete, or inaccurate.
2. Audits: The EDD conducts routine audits to ensure businesses comply with tax laws.
3. Misclassified Workers: This is one of the common triggers. If the EDD suspects you’ve misclassified employees as independent contractors, they may reassess your tax liabilities.

No matter the cause, it’s essential to figure out why you received the notice before planning your next steps.

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How to Respond or Appeal a Notice of Assessment from EDD

Receiving a Notice of Assessment from the Employment Development Department California isn’t the end of the world—but you need to act fast.

1. Review the notice: Check the period highlighted in the Notice of Assessment, verify that the payroll and tax amounts align with you records.
2. Make a Payment: If the assessment is accurate, be sure to make the payment before the deadline to avoid additional penalties or interest
3. Appeal the Assessment: If the notice is unclear or inaccurate, you can file a petition to dispute it.

Stellar can help with all of those above! Read more below:

How Stellar Can Help With Your Notice of Assessment

Dealing with an EDD California Notice of Assessment can feel like trying to solve a puzzle with missing pieces. That’s where Stellar steps in. Our team specializes in taking the stress off your plate—so you can focus on growing your business instead of drowning in paperwork. Here’s how we can help:

1. Reviewing Your Notice and Payroll

The first step to resolving an issue is understanding it. We’ll thoroughly review the Notice of Assessment and your payroll records to pinpoint the problem. Whether it’s a discrepancy in filings or potential misclassification of workers, we’ll uncover the root cause.

Our team dives deep into the details—so you don’t have to. Think of us as the GPS guiding you through the maze of EDD regulations.

2. Helping You Appeal

Appealing an EDD tax assessment can be a time-consuming and stressful process. As a founder, your time is better spent running your business—not battling bureaucracy. That’s why we take care of the heavy lifting.

From preparing the necessary documents to representing your case with the California Employment Development Department, we’ll handle it all. Our goal? To ensure the EDD gets a clear picture of your compliance efforts, so you can reduce or eliminate unnecessary penalties.

Schedule a call with us here or send us an email at connect@histellar.com

Wrap Up

The California Employment Development Department takes payroll taxes seriously, and their Notices of Assessment reflect that. If you’ve received one, don’t panic. Understand your situation, explore your options, and take the necessary steps to resolve it. Whether it’s appealing the decision or setting up payment, the sooner you act, the better.