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]
YOUR DEFINITIVE GUIDE TO California EDD Audits, The Dynamex Case and Independent Contractor Classification
The NEW ABCs of 1099 Contractor Classification (AB-5)
In January 2020 California AB-5 will go into effect and many workers previously classified as contractors will be required to reclassify as W-2 wage earning employees. The CA EDD has always had criteria by which employers can determine whether a worker is classified correctly as a 1099 but those criteria… [Read more]
