The California Employment Development Department (EDD) is considering a fundamental change in recognising loan out corporations. Loan out corporations are single-owner LLCs that permit contracted workers to offer their services as employees of their entity, which lets them draw a salary and contribute to a retirement account on their behalf. The shift could substantially impact the entertainment industry workers who utilise these corporations for liability protection and tax breaks. The EDD audit at payroll service Cast & Crew has led to this policy reconsideration. The department will require employers to pay directly to contracted employees instead of to loan out corporations. EDD’s sudden policy shift, if implemented, could create a problematic scenario for the entertainment industry. However, there is no published law modification or regulation change in this issue yet.

For those impacted by these potential changes, reaching out to EDD can be an important step to understand and deal with the situation better. eddcaller.com provides information on how to contact EDD, the fastest way to get through to EDD, and even how to talk to someone at the EDD department. Having knowledge on how to contact a live person at EDD California or how to reach an agent at EDD can be helpful to gather more information. Ensuring effective contact with EDD customer service is a critical need of the hour for anyone who might be affected by this policy change.