What is an EDD Payroll Tax Audit? So a payroll tax audit is kind of what it sounds like it is the auditor coming in and doing a check to make sure that payroll was properly recorded and that payroll taxes were properly paid so a payroll tax audit doesn’t necessarily mean that you’ve done anything wrong although the way that the EDD operates there is a suspicion on their side that you have done something wrong. The EDD doesn’t usually just bought it returns at random it’s going after returns and tax payers that it believed have a high propensity of error that’s why it wants. The EDD doesn’t have unlimited resources so it has to pick and choose those resources but from a taxpayer perspective whether or not you have an issue an edu audit is nothing more than a check on how you’re reporting your payroll and how that taxes.
