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California Law Changes

California is a great place to live. However with the great weather sometimes comes a price, in this case with ever changing laws that impact taxpayers and business owners. In recent months, two significant laws have been passed which merit attention.

The first involves the making statutory, a court ruling issued a year ago involving the state classification of an independent contractor versus an employee. While some language was added exempting some professions, for the most part, the law now makes it more difficult for businesses to consider outside workers as contractors rather than workers. If you as a business owner need guidance on how this new law applies to you, please contact me and I can walk you through it.

The second law change picks up health care mandates where Congress and President Trump removed it. Beginning in 2019, while the Congressional requirement to have minimum health insurance still exists, there is no longer a financial penalty for not having it. That being said, Calfornia Governor Gavin Newsome signed into law, a state level requirement taking effect 1/1/2020 that imposes a state penalty for not having minimum coverage. This penalty starts at $695 but has similar exemptions to the Federal law. Again, if you have questions please contact me.

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