Filing Requirements for Independent Contractors

Payments of $600 or more during a calendar year made to individuals for services rendered, who are not employees, must be reported on the IRS Form 1099-MISC. This report is due to the IRS by February 28, for payments made during the previous calendar year. Refer to Employee versus Independent Contractor for assistance.

PTA must report individuals who are independent contractors to the California EDD on Form DE 542, Report of Independent Contractor(s), within 20 days of making payments of, or entering into a contract for $600, or more within any calendar year.

The EDD may assess a penalty for each failure to comply with the required time frames. A penalty per instance may also be assessed for failure to report independent contractor information. To obtain Form DE 542 visit EDD website at www.edd.ca.gov.

Each independent contractor should complete a Request for Taxpayer Identification Number Form W-9.

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