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Independent contractor law AB5

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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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An NP I work with sent this to me. It was sent to her by another employer where she does IC work. Any comments on this?

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If you do not have absolute and total control over your days worked, time worked, and days off, you do NOT meet the IRS criteria for IC status.  It is that simple.  Go to IRS.gov and do a search for independent contractor and check for yourself.

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I get that, but the implication here seems to be that if you establish as an LLC or S corp you are somehow no longer an independent contractor. 

Comments on that?

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Not sure, the employee (or subcontractor) of a business (the S-corp) that is doing business with another company (the original employer)?  

 

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"If you do not have absolute and total control over your days worked, time worked, and days off, you do NOT meet the IRS criteria for IC status.  It is that simple.  Go to IRS.gov and do a search for independent contractor and check for yourself."

GetMeOutta- so, if you do meet this criteria, you can work as an IC? Because I have that now, and would like to continue as an IC.

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"If you do not have absolute and total control over your days worked, time worked, and days off, you do NOT meet the IRS criteria for IC status.  It is that simple.  Go to IRS.gov and do a search for independent contractor and check for yourself."
GetMeOutta- so, if you do meet this criteria, you can work as an IC? Because I have that now, and would like to continue as an IC.

It’s more than that. You have to provide different type of work than the company you work for...example if you work for an urgent care, and provide urgent care services as an independent contractor or S Corp it’s the same line of work then it doesn’t pass the ABC, has to be different type of service... if you are an urgent care, and contract an S Corp for janitorial services than that fits the criteria. Certain professions got exemption like doctors lawyers ... one way a lawyer told me it would work is if you have multiple employers and they are all paying your SCorp then maybe that can work cause then you provide contract work for multiple businesses. We need to call CAPA and get a push for exemption.


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Hmmm. I have multiple employers but not an S Corp (and I"m not an IC for all of them). I will be providing dermatology care for an urgent care/IM practice. I suppose that doesn't count? 

I agree with you, r.sandoval- MDs pushed to be exempt from this new law, so why didn't PAs or NPs? CAPA keeps telling me how hard they are working for us...

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I was speaking to a nephrologist today who wanted to have me cover him on weekends. He claims that this new law prevents him from paying me per patient. Instead he has to pay me hourly as an employee. Is this true? I can’t find info about this anywhere 

 

 

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I was speaking to a nephrologist today who wanted to have me cover him on weekends. He claims that this new law prevents him from paying me per patient. Instead he has to pay me hourly as an employee. Is this true? I can’t find info about this anywhere 
 
 

He can pay you hourly or a flat rate or salary with bonus and make it out the difference to be similar to per patient


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On 12/12/2019 at 8:26 PM, 924er said:

I was speaking to a nephrologist today who wanted to have me cover him on weekends. He claims that this new law prevents him from paying me per patient. Instead he has to pay me hourly as an employee. Is this true? I can’t find info about this anywhere 

 

 

It's true that he has to pay you as an employee.  In other words not an IC.  He has to take taxes out and file them.

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It's true that he has to pay you as an employee.  In other words not an IC.  He has to take taxes out and file them.


Not only that. I bet he also has to give me other Benefits like sick pay. That’s going to be less appealing for him to use PAs as locum. Sucks


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He can pay you hourly or a flat rate or salary with bonus and make it out the difference to be similar to per patient


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Right, he mentioned that paying bonus will help make up the difference but that’s gonna be confusing for me to even calculate


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Hey guys. If you want help figuring out what's going on with AB5, want to ask questions, or hear about the latest news in the fight against this law, please check out this group on Facebook: https://www.facebook.com/groups/217854619311379/

It's called The People v. AB5 and was started by a Democrat Lawyer with blog posts to inform the public and spread awareness about AB5 and encourage helpful discussion about working as independent contractors. 

It's really not fair that PA's did not receive an exemption, when MD's, DO's and Dentists all received an exemption. Especially with the current state of affairs in the medical world right now, it's really important that PA's have the right to be true independent contractors and work the way they want to work. It seems like the professions that received an exemption to AB5 must have lobbied for it, possible through trade groups doing the lobbying. Originally Realtors were not exempt in the first draft of AB5, but later on realtors received an exemption from AB5. 

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