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What Are the Tax Implications of AB5?

TalentWave is now People2.0! New company, same great thought leadership.

When you begin to examine the business tax implications of California’s AB5 law, it’s easy to make things complicated. We’d like to simplify them.

Find Hope and Take Action: Understanding AB5 Carve-Outs

TalentWave is now People2.0! New company, same great thought leadership.

The more we can understand the law, the better off we’ll be. As you recall, under the AB5 law, independent contractors, or ICs, must meet all three strict ABC criteria to truly qualify as independent contractors rather than employees. In this article we’ll take a closer look at the exceptions or carve-outs to the law. First, a few qualifiers. Out of the thousands of jobs in the cradle of innovation that is the very large state of California, only a few dozen industries are carved out of the AB5 legislation, and the jobs that are carved out specifically can seem arbitrary. For example, fine artists are carved out, but musicians aren’t. Psychologists get an exception, but psychiatrists are not specifically named as being outside of AB5’s ABC Test.Plus, we must keep in mind that these carved out professions are not truly exempt from all IC requirements. They are simply exempt from the ABC Test, which means that contractors must still be qualified under the previous multi-factor Borello Test.

The Many Facets of Worker Misclassification

TalentWave is now People2.0! New company, same great thought leadership.

Many companies that utilize independent workers believe worker misclassification is just an employer tax issue. The truth is there are many federal and state agencies who are very interested in proper worker classification in order to provide workers with the benefits and protections to which they would be entitled to as employees. A few examples […]

Potential Worker Misclassification Risks with SOW Vendors

TalentWave is now People2.0! New company, same great thought leadership.

Engaging with a corporation does not automatically protect your company from worker misclassification risks. We are frequently asked by clients to help them manage the risks surrounding professional services vendors who perform work on a SOW basis for the benefit of the client company.

The Many Potential Pitfalls of Worker Misclassification

TalentWave is now People2.0! New company, same great thought leadership.

Worker misclassification is a growing area of concern for US employers. In 2015 we saw significant federal and state regulatory agency activity around worker classification, and this trend is likely to accelerate in the coming year.

Agencies Involved with Worker Misclassification Claims

TalentWave is now People2.0! New company, same great thought leadership.

The risks associated with IC misclassification are widespread, and an increasing number of federal and state agencies are focused on the issue. In this article we’ll present an overview of the regulatory bodies at different governmental levels responsible for various aspects of IC misclassification.