How to navigate AB-5 Assembly Bill 5, which required companies to reclassify most independent contractors as employees, is hurting employees. California’s new AB-5 and Gig Workers Bill has employers concerned since it is unknown what EDD will do next. The bill that passed a few months back was already affecting… [Read more]
EDD confirms it has resumed tax audits
CA EDD confirms it has resumed tax audits relating to the misclassification of 10 million contractors. Until September 2nd, 2020, CA EDD auditors had put audit cases on hold in order to assist the agency with the unemployment insurance benefits process. With the onset of the COVID-19 layoffs and the… [Read more]
What to do if You Get Audited by EDD
Being audited by EDD can happen to anyone. It can be challenging to take a step back and see the audit process from an objective point of view, but maintaining your focus is essential to coming out ahead in the end. In this article, we discuss tips to simplify the… [Read more]
Is IRS Still Auditing? [video]
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]
Precision & Attention to Detail Are The Hallmarks of Milikowsky Tax Law
John’s level of precision and attention to detail is unmatched. At Milikowsky Tax Law, we partner with CPA firms to provide the highest level of service and support to their clients in case of IRS Audit, EDD investigation or other tax controversy matters. Bernie Minton, CPA is a trusted CPA… [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]
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]
