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California Independent Contractor Law

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Anyone know more about the new law to be in effect January 1st, 2020? I’m an independent contractor with an S-Corp, was told by my attorney that I can continue, but Employers attorney says it doesn’t pass the ABC test. Anyone having this problem? Anyone finding solutions?

 

 

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I'm guessing California did this to offset Trump's tax cuts that greatly benefited 1099 contractors.

Solution?  Move, or convert to a W-2 position with much higher pay and benefits.  

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Doesn’t really matter what your lawyer says. The company’s lawyer is basing the decision on what’s in the best interest of the company so if he advises the company that you don’t pass the ABC test then as far as they are concerned you can’t be an independent contractor. It would seem to me that the company’s lawyer is better situated to know whether you pass it than your attorney.  

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9 hours ago, Boatswain2PA said:

I'm guessing California did this to offset Trump's tax cuts that greatly benefited 1099 contractors.

Solution?  Move, or convert to a W-2 position with much higher pay and benefits.  

it doesn't really have anything to do with taxes. It was aimed at the gig economy such as Uber. Physicians were exempted for locums purposes. The California nurses were pretty adamant that nurses not be exempted (probably makes strike breaking harder) so PAs and NPs got swept up in the mess. 

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Like I said on the other thread...make other plans.  You as a PA can not be an IC as of Jan 1st.  Try and push it and you will have the IRS right up your rear with a spotlight.

And California did it to try and slow down people getting screwed in gig jobs that employers were taking advantage of instead of paying benefits.

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Is an IC truly apply when you have an SCorp?  You are paying both sides, and not going through you own SSN (the typical IC method)

 

clear as mud

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17 hours ago, ventana said:

Is an IC truly apply when you have an SCorp?  You are paying both sides, and not going through you own SSN (the typical IC method)

 

clear as mud

Having an Scorp has nothing to do with it.  IC is defined by the job, how you are scheduled and what you do.  The IRS is pretty specific about it, but Cal just took it to another level of no you can't be an IC as a PA....

 

 

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