Do You Have Questions About AB 5? Resources are Available 

EAs have been trying to make sense of the many confusing circumstances that Dyanmex and AB 5 have created for California taxpayers. Despite the many questions and uncertain circumstances surrounding the bill’s implementation, the rule still stands that after January 1, 2020, hiring entities are required to classify workers as employees unless they meet all conditions of the ABC test. Undoubtedly, your clients have been coming to you with a number of questions regarding independent contractor status after the April 30, 2018 Dynamex decision, as well as the tax implications of their situation going forward. The following valuable resources should help lessen any AB 5 confusion for you and your clients:

  • Our timely on-demand webinar, AB 5 Dynamex Codified & Federal Common Law Comparison, taught by Juan Montes, EA, JD, addresses many questions you may have and will arm you with best practices for handling many tricky situations. 
  • Other resources available to you include the AB 5 FAQ page on the FTB website, which answers a number of questions about individuals who are filing as independent contractors at the federal level, but as an employee in California.
  • Finally, for questions about payroll taxes and employment status, you can point clients to the CA Labor and Workforce Development Agency website and FAQ pages, or encourage them to see a labor attorney.