Independent contractor and 1099

Some people will do that, but others won’t want to give up being able to itemize deductions to be an employee. If it holds up in CA and then spreads everywhere the insurance companies will make a killing with a lot of o/o’s getting their authority and going to a broker/carrier relationship with the company they’re currently leased to.

 

What part of this wording prevents AB 5?

Article I, Section 8, Clause 3:
"The Congress shall have Power] To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;"


Not saying it's not a bad law, but too many people throw the word unconstitutional around without knowing what it means.
AB 5 doesn't regulate any commerce. Its all about employee/employer relationships.

 

Hahahahahaha got him!!!!!!

 

A couple thoughts ---- don't take this as bashing you, it is frustration with this crap being pulled by California and other states.

First off Owner Operators are not ones that are just Authorized to Operate, I get tired of this crap and have since the 80's, there is no difference between someone with an authority and someone leased who owns their own truck. They have the same exact control over the work and one just has the back office end done for them.

A sub-part to that is this idea that they deserve 100 percent of the load revenue, wtf is with this idea? No one seems to get that there is an opportunity costs involved, either you get 100% and pay to chase the money though the use of your time or you pay someone else to do it through the lease.

Second, this is a bad thing with more government involvement. Most people need to be adults, not to have their hand held in this industry. This is why this industry gets a lot of bottom of the barrel people in it and why we are looked down on. ELDs are one such example, others are more sublime or just ignored. If there is abuse going on, there are two parties to be blamed not just one. Slavery went out in the 19th century and if some driver is so desperate to make money that he/she selects to be abused, well that's their problem. NO one forced them to take a job. California is trying to right a wrong that just doesn't and never did exist, they are intervening to increase the wages of those who can't do it themselves. Just like those stupid minimal wage laws where they raised it to the point that the people don't want to work, they just show up and expect to be paid.

Third this will effect everyone if it is not stopped, it has been discussed other places that this will effect O/O because other states will see how to leverage this for money. It will effect them negatively by forcing most who are sole proprietors to convert to corporations (there is talk about refining LLC laws because of it) and this means for those who don't get it, it is more money for the states in taxes, fees and fines. For many who operated for years as a stable business as a SP, it will cost them more money than it would justify the changes in the laws.

 

Whatever your Independence maybe, would it be better to have a corporation with a subchapter s? This would eliminate the self-employment tax if your profit does not exceed the amount that you pay yourself for a year. Self-employment taxes also known as social security tax is 15 percent.