Can you work as independent contractor in California?

There may be some factors suggesting a California worker is an employee and others suggesting he or she is an independent contractor. It is even possible that a worker can be considered an independent contractor for purposes of IRS tax filing, but they are considered an employee under California’s wage and hours laws.

How do I know if an individual is considered an employee or independent contractor in California?

The basic test for determining whether a worker is an independent contractor or an employee is whether the principal has the right to control the manner and means by which the work is performed.

Do I need an EIN as an independent contractor?

If you perform personal services as an independent contractor, you must provide an EIN or Social Security number to your clients, or the client will be required to withhold 28% of your payments.

What makes an independent contractor an employee in California?

A California independent contractor is a person who works for a specific fee and result. The employer only controls the result of the work but not how the work is accomplished. 4 When a worker does not have control over the work that they are doing, they do not have control over the safety of the work. In this case, they are an employee.

When does the new California independent contractor law go into effect?

The new law, which went into effect on January 1, 2020, essentially codified the California Supreme Court decision to adopt the “ABC test” for determining whether someone is a properly classified independent contractor.

When does someone claim to be an independent contractor?

The new law addresses the “employment status” of workers when they are claimed to be an independent contractor and not an employee. 1. What is AB 5 and what does it do? AB 5 is a bill the Governor signed into law in September 2019 addressing employment status when a hiring entity claims that the person it hired is an independent contractor.

What makes a person an employee in California?

Under California labor law, whether a worker is an employee or an independent contractor depends on the application of the factors contained in the California common law or employment and statutory provisions of the California Unemployment Insurance Code.