Worker Classification in Light of California's AB 5
Author: Annette Nellen
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours California Tax for CTEC |
This on-demand course will cover the tax rules and issues regarding worker classification to avoid worker mis-classifications. It also covers California’s new classification scheme (AB 5), who it affects, and dealing with new state and federal differences.
Publication Date: January 2020
Designed For
Practitioners who hire workers or have clients who hire them.
Topics Covered
- Why and when worker classification is relevant
- Challenges in dealing with the tax classification rules
- The federal tax rules and comparison to some states
- Gig economy considerations
- Recent developments
- Dealing with the challenges
- Practice tips
- Proposals for change
Learning Objectives
- Recognize why worker classification is relevant under numerous tax and non-tax laws
- Identify the tax rules for distinguishing between employees and contractors and how AB 5 enacted in California in 2019 applies
- Recognize worker classification issues in the gig economy
- Differentiate special tax rules and remedies applicable when problems are discovered
- Recognize how related tax rules are relevant in the worker classification area
- Identify proposals for change and varied state classification law enacted in recent years
- Recognize what exemptions mean in reflection of the specific industry issues
- Describe which test under the common law 20-factor test
- Identify which states are currently pursuing the AB 5 approach
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
