How to Navigate an EDD Audit: A Client’s Journey with Milikowsky Tax Law
Create the Lab, an event and film production studio in Hawthorne, California, was audited by the California Employment Development Department (EDD), founder Mykel feared a significant financial blow. But with the expert guidance of Milikowsky Tax Law, the experience turned into an opportunity to improve his business operations.
Watch the video below to hear Mykel’s firsthand account of navigating the EDD audit and how Milikowsky Tax Law helped him protect his business.
Keep reading to learn how Mykel navigated the audit process and the valuable takeaways that helped strengthen his business moving forward.
Facing the Unknown: Mykel’s EDD Audit Experience
When Mykel first found out that Create the Lab was being audited by the California EDD, panic set in. “It just threw us into this kind of downward spiral,” Mykel shares. “We had no experience with this, and every door that opened seemed to lead to scarier surprises.” The fear of facing tens of thousands of dollars in fines for misclassifying 1099 workers was daunting.
But as the audit progressed, Mykel realized that the fear of the unknown was far worse than the reality, thanks to the help of Milikowsky Tax Law.
Turning a Crisis Into an Opportunity
Instead of crumbling under the pressure, Mykel and his team at Create the Lab learned valuable lessons from the audit process. “What we learned from the process was incredibly valuable,” Mykel reflects. “Not only did we avoid paying tens of thousands of dollars, but we gained the knowledge to prevent similar issues in the future.”
Through the guidance of Milikowsky Tax Law, Mykel’s business learned key strategies for avoiding common audit triggers, such as errors in 1099 filings and improper EIN management. “I now know exactly what to avoid when it comes to employee classification and tax filings,” he says, “and I feel more confident in running my business.”
The Relief of a Positive Outcome
When the audit ended with the announcement of “no change,” Mykel could hardly believe it. “It almost felt too good to be true,” he admits. “But knowing that Milikowsky Tax Law had been there every step of the way, guiding us carefully through the process, made all the difference.”
The outcome was a huge relief for Mykel and his team, and it allowed them to focus on what mattered most: growing and running their business. “The best part wasn’t just avoiding the financial penalties but gaining peace of mind and a deeper understanding of how to manage our business more effectively in California.”
Key Takeaways from Mykel’s EDD Audit Experience
- Stay Calm and Seek Expert Help – If your business is facing an EDD audit, don’t panic. Experienced tax professionals can help you navigate the process and minimize any potential damage.
- Understand What Triggers Audits – Inaccurate 1099 filings, misclassification of workers, and improper EIN management can all trigger an audit. Understanding these risks can help you avoid common pitfalls.
- Learn from the Process – An audit doesn’t have to be a disaster. With the right guidance, it can be an opportunity to improve your business operations and gain valuable insights into tax compliance.
- Work with the Right Professionals – Having a trusted tax firm, like Milikowsky Tax Law, by your side ensures you have the right strategies in place to handle audits and stay compliant with California’s strict tax laws.
Let Milikowsky Tax Law Help You
If your business is audited by the California EDD, don’t face the process alone. Call Milikowsky Tax Law at (858) 450-1040 to get the expert support you need. Hear more from Mykel about his business’s audit journey and how Milikowsky Tax Law’s team helped him successfully navigate the audit process.
Your business deserves the best protection and guidance—let Milikowsky Tax Law be your trusted partner in staying compliant and thriving in California.
