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Joseph, Lawyer
Category: California Employment Law
Satisfied Customers: 5299
Experience:  Extensive experience representing employees and management
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EDD is auditing my company. The have taken several long breaks

Resolved Question:

EDD is auditing my company. The have taken several long breaks from the process. Does the statutory period of three years of record review continue to roll forward from current date, or do the old quarters expire without the addition of new quarters.

IE. My first EDD letter stated a statutory period of 7/1/07-6/30/10. A later letter was sent out stating the period was 1/1/08 to 12/31/2010. The auditor has just contacted me after a 6 month hiatus. Should the period be 1/1/09 - 6/30/10 according to CUIC 132?
Submitted: 5 years ago.
Category: California Employment Law
Expert:  Joseph replied 5 years ago.
Hello and welcome to JustAnswer.

The statutory period fo three years of record review stays the same from the beginning of the audit, so it would remain to be 1/1/08 to 12/31/2010 unless a new audit is started.

Also, there is no California Unemployment Insurance Code Section 132. Are you referencing a different section?
Customer: replied 5 years ago.
The time was changed from first notice to second, so in this case it did not stay the same, what statue states the date would be fixed?

I also found note by Robert Schriebman stating oldest quarters expire, it's not clear if new ones are added.

" BEWARE: Often the EDD will begin its examination on periods that have expired pursuant to CUIC Section 1132. You have the duty in effectively representing your client to inform the auditor that the statute of limitations for these periods has already expired and, therefore, your client does not have to go through the inconvenience and expense of reproducing records for an already expired quarter or two. During the audit you must be constantly diligent about the statute of limitations. Why? EDD audits can drag out for a long time and it is not uncommon for the statute of limitations to expire on one or more quarters during the audit process."
Expert:  Joseph replied 5 years ago.
It's three years prior to when the notice of assesment has been filed, so if EDD has made a reassesment of the amount that is owed then the period would only date back three years before the assesment occured.

That also means if the EDD has yet to make an assesment, then the date will only go back three years from the date that the assesment is made.

The old quarters will fall off, but new ones can be added, since the period will date back three years from when the assesment is made.
Customer: replied 5 years ago.
There has been no assesment yet, so the time period will continute to roll forward. New records may be required indefinatley until they make an assessment, the statutory peord in the the letter is irrelevent and there is nothing I can do about it, is that correct?
Expert:  Joseph replied 5 years ago.
Yes, the old quarters will continue to fall off, but if and when an assesment is made, thy can require records for three years prior to the date when the assesment occurs.
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