Overview
-
Independent contractor v. employee
3 mins
-
-
-
Business to business contracting
25 mins
-
Misclassifying workers
39 mins
Course Description
Worker classification can be
ambiguous and confusing. Classify your workers as independent contractors when
they’re employees, and you’ll get hit with penalties. That’s why it’s important
to stay up-to-date with the latest independent contractor guidelines like the
withdrawal of the 2021 new DOL rule.
Correctly classifying your
workers as employees or independent contractors impacts everything from taxes
to benefits. Whereas employees are on your payroll, independent contractors are
not. Contractors are responsible for paying their taxes and providing their
benefits, like insurance. And, the Fair Labor Standards Act (FLSA) covers
eligible employees—not contractors—under minimum wage and overtime laws.
California’s contractor laws
state that an independent contractor is a person or business that provides a
specific service to another company in exchange for compensation. California
Assembly Bill 5, or AB 5, is a legislative act passed by Governor Newsom in
September 2019. The new law was effective on January 1, 2020. AB 5 requires
companies to reclassify independent contractors as employees with a few exceptions
to the rule.
In 2018, the California Supreme
issued a critical decision regarding the matter of Dynamex Operators West v.
Superior Court of Los Angeles. The Supreme Court rejected a test determining
whether to classify a worker as an independent contractor vs. employee known as
the Borello test. Instead of the Borello test, an employee-friendly standard
was adopted while ultimately upending the independent contractor market.
The most significant turn was how
the Supreme Court incorporated a new standard that presumes all California
workers are employees unless their employment meets specific criteria. The
specific criteria are included in the newly accepted ABC test as a result of
the Dynamex decision. Legislation and court rulings have reshaped California's
worker classification landscape in an attempt to make compliance easier for
employers.
In
this practical CPE webinar speaker, Cynthia Flynn will
discuss employee classification and the use of independent contractors in the
age of AB5 and the Department of Labor’s most recent rulings in California
State.
Learning Objectives
- To identify the nuts and bolts of the ABC test
under AB5.
- To recognize when a worker may meet an exemption
under AB5 or AB2257.
- To discuss the impact of Proposition 22 on
businesses in California State.
- To analyze the impact of the recent Department
of Labor rule for classifying independent contractors under the Fair Labor
Standards Act (FLSA).
- To develop an action plan to assess your
business' compliance with AB5 and mitigate any risk.
Recommended For
- This
Online CPE webinar is recommended for CPAs, CMAs, CEOs, CFOs, Business Owners,
Business Managers, and Other Individuals interested in understanding the
changes following the Department of Labor’s Withdrawal of the Independent
Contractor Rule
Who Should Attend?
- Accounting and audit managers/practitioners
- Business Owner
- CEO
- Certified Management Accountant (CMA)
- Certified Public Accountant (CPA)
- CFO/Controller
- Compliance Managers
- Compliance Officers
- CPA (Industry)
- CPA - Mid Size Firm
- CPA - Small Firm
- CPA in Business
- Entrepreneurial Accountant
- Entrepreneurial CPA
- HR Professionals
- Human Resources Manager
- Young CPA
.png)
