Originally Posted By: rockstar_not
California with yet another weird tax law! Unbelievable!


In concept I agree with this law. The headlines are Uber and Lyft drivers. Until now they're IC's and I have a few as clients and I can tell you they make squat. After factoring in depreciation on their cars long term they're in a net loss. Forget accounting tricks, I mean a real loss. There are many other types of companies who totally take advantage of their workers as well by misclassifying them as IC's.

Where this law falls down is they rushed this through without parsing out the details and going through all the different scenarios. Sound familiar?

I just read about another occupation that is scared right now. Clinical Psychologist. Most are IC's who work for many different clinics. The clinics are not about to put them on W2's and it's totally impractical for them to become a formal entity in CA by following the new rules spelled out in AB5.

What makes this so tricky is in the fine print. There are lists of different occupations that have different levels of exceptions. First are you in such and such a category? Yes, go here. No, go there. Then are you listed in this one or that one? Yes, keep reading and on and on. When you finally find where you fit there's a whole list of items that MUST be done. Not 8 or 9 out of 10 no, ALL of them. We already know I'm a musician. I'm also a semi retired tax pro who's been putting myself out there as an IC tax consultant to several firms. An EA is listed as one of the exceptions IF I jump through all these hoops. I'm basically in the same bag as the psychologists.

It's a mess right now.

Typical politicians. They find one concept that seems to make sense, get people behind it and then do this.

Bob

Biab/RB latest build, Win 11 Pro, Ryzen 5 5600 G, 512 Gig SSD, 16 Gigs Ram, Steinberg UR22 MkII, Roland Sonic Cell, Kurzweil PC3, Hammond SK1, Korg PA3XPro, Garritan JABB, Hypercanvas, Sampletank 3, more.