The laws about employee withholding are very strict and the penalties for even an honest mistake are extremely vicious. If you run a mobile auto detailing business in California you will be surprised to find out hiring your best friend for a couple of days can get you in hot water. Stopping on the corner and hiring day labor can end you up in jail if that person turns out to be an illegal alien. There are things you should know.

We recommend contacting the State of California at:

Franchise Tax Board
P.O. Box 942857
Sacramento, CA 94257-0500

Also the IRS at:

Internal Revenue Service
Western Area Distribution Center
Rancho Cordova, CA 95743-0001
1-800-829-1040

**Ask for Circular E