Good news for Californians. California AB 80, passed in the Senate on April 26, 2021 and presented to the Governor for approval today, is scheduled to take effect immediately as an urgency statute. As stated in California’s Legislative Counsel Digest, “the bill would exclude, for taxable years beginning on or...
Change Your Business Model to Avoid Independent Contractor Misclassification
Should you consider A new business model to avoid independent contractor misclassification and associated penalties and financial consequences? The rising number of California Employment Development Department or EDD misclassification audits is skyrocketing. The first thing many EDD auditors are asking is simple: "Do you have any 1099 workers?" If the answer...
California EDD is Actively Targeting Independent Contractor Misclassification
The California EDD is actively targeting independent contractor misclassification and seeking substantial tax revenue from San Diego and California employers. While the federal agencies may have seemed to relax based upon administration policies, the California agencies are making this a primary focus. If you have 1099 workers or independent contractors...
Employee or Independent Contractor in San Diego
When someone completes work for your business, are they an employee or an independent contractor in San Diego? Do you issue them a W-2 or a 1099 form? This is a challenging question faced by many business owners due to the fact that there is no definitive guidance on the...
Who Determines if a San Diego Employee is Exempt or Hourly?
How does California look at employees, and how is a San Diego business person able to make decisions regarding whether to make all employees "exempt" or if some must be hourly. I believe everyone should have a fair wage, but the issue of overtime has had a crippling effect on...
Contracts Will Determine the Success or Failure of a San Diego Business
You can measure the success or failure of a San Diego business in large part by the quality of its business contracts. Contracts establish the agreements between the parties, and the rules for how transactions and relationships will work. This applies to suppliers, vendors, employees, customers and even the owners,...
What information the IRS Requests for an Audit and Why
You need to be wary of what information the IRS requests for an audit and why. If you have received an IRS "Letter of Notification" informing you of an upcoming audit your first action to be to contact us at 866-631-3470. Dealing with the IRS is serious business, and the...
An IRS Field Audit in San Diego
What is an IRS Field Audit and why should you be concerned by this? It means the IRS wants to come visit you in your home, or at your office. An IRS Field Audit is as serious an audit as you can face, and the genuine risk is what we...
Misclassification of Independent Contractors Even More Complex
What makes misclassification of independent contractors even more complex in California? A recent California Supreme Court Case has expanded the liability for the misclassification of workers as independent contractors and makes misclassification of independent contractors even more complex. The Supreme Court recently declared worker classifications (2018 Dynamex) regarding independent contractors...