Verify your 1099 Workers’ Status
Verify your subcontractors have a legitimate business and their construction license does not become suspended or revoked during a project.
California EDD conducts site sweeps regularly…
Are you sure all your 1099 contractors have valid licenses for the work they are doing for your company? If not, you could be audited by EDD, IRS and CFTB.
Why do you need a got1099 report?
Avoid a CSLB Stop Order and Potential Criminal Exposure.
CSLB routinely conducts random inspections of construction sites looking for unlicensed workers. In 2019/2020, CSLB’s Statewide Investigative Fraud Team (SWIFT) responded to 855 leads, conducted 52 sting operations and 216 sweep days, which led to the issuance of 260 Notices to Appear in criminal court. SWIFT issued 239 stop orders to employers without workers’ compensation insurance and issued 1,494 advisory notices. In total, 368 cases resulted in administrative action and 634 cases were referred for criminal prosecution.
California Department of Consumer Affairs had 34,154 Convictions and Arrests Cases and a total of 116,234 new Enforcement Cases against employers in 2020
Verify your subcontractor has a legitimate business.
Verify your subcontractor’s business information, which includes and EIN verification, tax license review, business location, and other credentials.
Minimize the risk California EDD will reclassify your independent contractor worker as an employee.
California law changed in 2020 with AB5.
California has strict requirements when you can classify a worker as an independent contractor versus an employee. First, any unlicensed workers performing any work in connection with construction work will be required to have a license or may be reclassified as your employee. EDD may audit your company and assess payroll taxes, penalties, and interest for all payments you made to your workers for the prior 3 years. Although the typical audit period is 3 years, EDD may extend the audit period to 8 years under certain circumstances.
The audit rate for misclassified independent contractors is up.
Various government agencies are investigating companies that hire workers who may not be legitimate independent contractors.
1099 Business Verification
Verify the legitimacy of a sole proprietor business or larger company.
EIN Confirmation
Confirm that an EIN is legitimate and belongs to a sole proprietor or business entity.
Business Entity Status
Review the history of a registered business to determine whether it is operating legally.
Web Social Research
Receive social media data establishing a business’ web presence is operating.
Tax License Check
Confirm your contractor is registered to do business in their city.
Professional License Alerts
Optional service includes monthly alerts to notify you of any changes in a professional license or construction contractor license which will impact whether your contractor can continue to qualify as a 1099 contractor.
Who Needs a Verify1099 Report?
Business Owners:
Any business hiring a 1099 independent contractor must verify the worker or company is legitimately operating under California’s new laws.
If your 1099 workers perform similar tasks to your employees, or if you are uncertain your 1099 workers have current business entity filings, licensing, and other elements as outlined in AB-5, get the peace of mind of a got1099 report. With our comprehensive reports and monthly alerts, you can be secure that you will be prepared to defend your workers’ classification against a government audit or inquiry.
With recent changes under California law, there are stricter requirements making it harder to hire 1099 contractors without the proper verification.
Find out more about the Verify1099 reports
DOn’t wait for an EDD, IRS or CSLB audit to verify that your workers are correctly classified as independent contractors. Workers without proper licensing can often remediate their status and remain as contractors. Not all 1099 need to be converted to W-2 workers in California.