The EDD pressured and manipulated me into agreeing to pay three years in past "unpaid" unemployment insurance and basically reclassifying all of our 1099 independent subcontractors to W2 employees. They threatened us with going back several more years and facing even more fines including penalties and reporting us to the IRS. We argued and fought hard but also were very cooperative. There final judgement was that we have control over the moneys. Our comeback was that we absolutely do not. There is a very clear contract between each independent sub-contractor and the company. They just were not going to budge from their dictatorial stance. Just recently I have been seeing that there are so many domestic referral agencies operating "legally". They all seem to be soliciting membership, (which seems reasonable), in turn for access to all the resources necessary to ensure we are fully legally compliant. I am so leery of going back to the 1099 world because it has been a little over a year since our audit and judgement. Leery because it would seem that they have their eyes on us. Can you shed any light on this? Point us in the right direction for obtaining sound legally information? Thank you, David
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