Many business owners are anxiously awaiting the proposed regulations regarding the types of State and local income taxes paid by a partnership or S corporation that may be deducted without the $10,000 limitation ($5,000 for individuals or married individuals filing a...
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How Will Prop 22 Effect My California Worker Classification?
For the app-based driver, the answer is clear, but for the tens of thousands of other gig economy workers in California, Prop 22 has no effect whatsoever on contractor relationships. Still, care must be taken in proper worker classification. Following the California...
AB 5-Compliant Independent Contractor Agreements
Assembly Bill 5 was passed and signed into law in September 2019. The bill instituted the new California worker classification test, the ABC Test (Labor Code section 2750.3), which states that a worker is an independent contractor only if the company hiring the worker...
California Sues Uber
On May 5, 2020, the State of California filed a Complaint for Injunctive Relief Restitution, and Penalties in California Superior Court against both Uber and Lyft claiming violations of the California Labor Code and Business & Professions Code. The California...
California Sues Uber and Lyft for Misclassifying Workers, Ignoring A.B. 5
In an effort to protect workers in California, Assembly Bill 5 was enacted requiring many companies to reclassify their workers as employees, and not as independent contractors. Uber and Lyft have ignored the legislation, which went into effect on January 1st, and...
Gig Economy and Other Worker Classification May Differ for Federal and California Purposes
Nearly a year ago, the U.S. Department of Labor issued an opinion that most "gig economy" workers are properly classified as independent contractors.The gig economy labor market is made up of individuals who complete short-term contracts or freelance work, rather than...
Good News for the Cannabis Industry?
As recently discussed here, the current state of the law allows business owners in the cannabis industry to take certain deductions on their state income tax returns, but not on their federal tax returns. That may soon change. The House Judiciary Committee approved...
How Will California’s AB 5 Affect My Business?
Following the California Supreme Court decision in Dynamex Operations v. Superior Court, 4 Cal. 5th 903 (2018), which identified the "ABC Test" for worker classification for the purposes of California's wage and hour determinations under the IWC Wage Orders, and now...
California Establishes Individual Healthcare Mandate Penalty Beginning January 1, 2020
While the federal penalty for failure by individuals to access health insurance under the Patient Protection and Affordable Care Act (also known as Obamacare) was eliminated by the Tax Cuts and Jobs Act of 2017, several states, including California, have instituted...
Cannabis Businesses Can Now Deduct Expenses on California Tax Returns
California Governor Gavin Newsom recently signed AB 37 into law, which legalizes licensed state cannabis businesses including marijuana growers, processors, and sellers to take deductions for their business expenses on state income tax returns. It exempts these...
