If you are currently being audited by IRS or EDD, be certain that you get a delay or postponement in writing. IRS and EDD are still auditing. The outbreak is not stopping work at CA EDD or IRS. Despite the chaos caused by the recent outbreak of coronavirus COVID-19, both… [Read more]
Will AB-5 Withstand Coronavirus?
As we look forward from April into the second quarter of 2020 the question on many business owner’s minds is: will the rules outlined in AB-5 stand in the face of coronavirus? At the start of 2020, business owners’ level of concern about California EDD’s newfound power to audit businesses… [Read more]
The Coronavirus Impact on Tax Law
The full scope of the coronavirus impact on tax law (and all other areas of business in the US and around the globe) has yet to be determined, but we can already see some of its major effects on tax laws in the United States. Just a few months after… [Read more]
Unemployment Claims Spike: So May EDD Audits
Unemployment claims are in the millions as a result of the coronavirus epidemic and the ensuing quarantine and lockdown. Small businesses are being deeply impacted by the downturn and many are having to lay off over half their workforce. Since the start of the outbreak, 3.2M people have filed for… [Read more]
AB-5’s Potential Impact
The US Government requires all employers to verify that employees are eligible to work in the United States. Verification includes providing passport, Driver’s License or Green Card at the time of hire. This regulation applies only to those workers hired as W-2 wage earners, not of those hired as 1099… [Read more]
AB-5 Exemptions: Not So Fast!
California Assembly Bill 5 (AB5) has built in exemptions for many businesses. We say “Not So Fast”! Even exempted industries have to adhere to the OLD criteria for classifying 1099 contractors. So, while many business owners are celebrating the free pass the AB-5 exemptions seem to offer. Take a step… [Read more]
Can your 2019 1099’s open you up to an EDD audit?
Businesses with multiple 1099s may have inadvertently opened themselves up to EDD audit or investigation. AB_5, the “Gig Work Bill” was signed into law last year by Gov. Gavin Newsom and went into effect January 1, 2020. The new law makes criteria for classifying a 1099 worker much more stringent. … [Read more]
Infographic: Contractor vs Employee What is the Difference?
How you hire a worker determines whether they are a W-2 wage earner or a 1099 contractor. Among the criteria used to determine employee vs contractor status are: how taxes are paid, when you pay your worker and how you pay them. These are not the only factors that determine… [Read more]
Business Tax Rates: What Should You Expect To Pay?
Corporate or Business Tax is a tax charged on a company’s profits. Depending on your business entity type your taxes are due at different times. Partnerships and S-corporations are due 3/15 while individual taxes and C-corps are due 4/15. In both cases quarterly payments can be made April – December…. [Read more]
1099 Worker Misclassifications
Paying all the fringe benefits necessary to hire a W-2 employee is a heavy burden for many small business owners. And while it is the law, many small business owners will intentionally misclassify workers as 1099s to avoid those payroll taxes, unemployment insurance and worker’s compensation costs associated with hiring… [Read more]