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What you just said is almost a verbatim summary of what my naive understanding was before watching my business partner undergo an EDD audit earlier this year where I myself was scrutinized heavily and interviewed by the EDD, having done some 1099 work for this guy. (And, the audited year was actually BEFORE the CA ABC test came into effect.)

What I'm trying to communicate is that this understanding will NOT sufficiently protect you from the CA EDD. It goes MUCH deeper than the above and they have no problem making assertions that probably would not stand up in court if you hired a tax attorney, but they don't really care.




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