New Law Alert: Navigating AB5 in 2023
Attention, California businesses! We’re three years into the implementation of AB5, but its nuances continue to echo in the business sector. If you haven’t aligned your operations with this regulation, now’s the time!
Navigating AB5 in 2023
Zumifi’s Pro Tip for 2023: As you gear up to prepare and file the 1099 forms, assess which vendors you’re issuing these to. Ensure they comply with the evolving interpretations and court rulings surrounding AB5.
The ABC test, as laid out by AB5, remains the gold standard in classifying a worker:
A) The worker operates autonomously without the hiring entity’s direct oversight, both in practice and on paper.
B) Their work is not within the daily purview of the hiring entity’s operations.
C) The individual actively engages in a trade or profession that aligns with their work.
📌 It’s imperative that all three criteria resonate for a worker to be classified as a contractor.
As we delve deeper into 2023, its criterion B continues to spark discussions and challenges. Professionals like bookkeepers, web designers, and attorneys may easily navigate this. However, businesses must be cautious if a role is central to their core operations. Remember, AB5, often called the “Uber law,” changed how platform-based businesses classify their core service providers.
Zumifi is here to ensure you’re never caught off guard. We advocate proactive business practices. It’s always more efficient and cost-effective to preempt issues than tackle them head-on afterward. We urge our clients to review their contractor relationships and adjust as necessary in light of AB5.
Uncertain about your next steps? Need expert legal advice or looking to shift from contractor-based models to full-time roles? Look no further. Zumifi can connect you with top-tier legal professionals and offer myriad payroll services recommendations. Our commitment is to streamline your transition and keep you ahead of the curve.
Embrace 2023 with precision. Understand AB5 and its implications, and adjust your business dynamics accordingly.
Stay in the know. Ensure compliance. Here’s to a prosperous 2023! 📜🔍