Posted on 05/09/2021 5:47:33 AM PDT by EBH
Yes. This is all about everyone being required to have a w2 which requires worker taxes be paid as withholding. The government wants it’s money as you are paid.
As opposed to 1099 which requires taxes to be settled only once a year as income tax.
The gov doesn’t trust you to settle up one a year.
Most 1099 folks pay quarterly.
...once a year
Works for me.
Imagine the impact on human trafficking and the drug trade.....
But estimated taxes (quarterly)are voluntary. The actual money does not have to be paid until yearly income taxes are filed. Even though you may have to pay a penalty for not paying quarterly.
I get 1099 forms every year. I have a home office with a separate phone number, a business checking account, a state issued resale card, and liability insurance in the name of my DBA entity. I work for multiple clients. I even do business with the state of California. I am a sole proprietorship, but a legit business since and no law is going to stop me. Even when I do work for other companies in my same field.
If a driver owns his own vehicle, and works for different clients then that driver is as much a legit business as a firm with a fleet of trucks. I’m thinking the problem arises when the driver is using another entity’s truck and he’s just selling his own time. It still sucks but for many, but not all, there’s a work around.
One last thought. How are these draconian laws like this that are applied to some groups of people but not others not considered a bill of attainder?
>> “I get 1099 forms every year. I have a home office with a separate phone number, a business checking account, a state issued resale card, and liability insurance in the name of my DBA entity. I work for multiple clients.”
Problem is most clients will not be allowed to send you a 1099 if you don’t meet the contractor test.
I’m not worried in the least. Most of my clients are not in the same business. I’m no different than the single worker plumber going to someone’s house to unclog the kitchen sink. Occasionally I do work for other design companies but haven’t done so for years.
The problem is that single plumber who needs an extra worker to handle a big job and it is prohibitive to make that extra set of hands an employee. He’ll probably wind up paying people under the table.
The US Constitution gives the federal government the power to regulate interstate commerce. Yet the 9th Circuit 9surprise!) thinks that union-serving California state laws contravene federal laws regarding interstate commerce. Let’s hope this goes before the US Supreme Court where it should be struck down.
A trucking company domiciled outside CA that makes deliveries to or from CA would not be covered by this law. It’s the local trucking contractors who never cross a state line who have the most exposure here.
At the moment the state of California has a $15 billion dollar budget surplus.
Looks like east coast and gulf ports are going to be busy. Ditto Oregon and Washington. Might even see a significant uptick in trucks coming from Mexico via AZ and NM.
Interstate Commerce clause, anyone?
Yes - if you can pick up loads any where else - no need to go to California. Unfortunately the majority of our stuff comes through the Port of LA - Long Beach that provides millions of loads to truckers.
This is the first time I have read the language of the ABC test to define a contractor.
A question I have is if there is any profession limitation to this law? If not then many if not all industries will have their models messed up.
As a start, an example would temp agencies that would cover everything from laborers to white collar professionals.
This describes to me as applying to individuals as opposed to business entities. If this is correct then could a simple LLC incorporation bypass the contractor status? If not then many business to business relationships are screwed as well.
Now shut up and eat your dirt pies...
>>> A trucking company domiciled outside CA that makes deliveries to or from CA would not be covered by this law.
AHHH... then it’s not really a ban on independents.
It’s a ban on free enterprise within the state.
Problem will solve itself.
Unions will choke on their own vomit.
All those crops in the Central Valley will be rotting because there are no truckers to move them
HA! And you should see the truckers who have relocated here in N’western Az as a result of this.
I can think of abt ten in my small area of the neighborhood right now. And thats been since a year ago. Most of the lots sold here are no smaller than 2 and a third acres.
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