Are you concerned about coming into compliance with 1099 workers in San Diego? If you have independent contractors as part of your business strategy you need to take immediate action to determine compliance with a recent Supreme Court decision and reduce your risk for draconian financial consequences. How can the attorneys at the Watkins Firm help?
Our attorneys work aggressively to limit the likelihood the filing of a complaint against your organization with a federal or state agency by an existing 1099 worker. We work with you and your management team to develop new strategies which help you with the goal of coming into compliance with 1900 workers in San Diego. A complaint by any of your present workers can trigger an immediate audit by the IRS, EDD, Labor Commission or other agency.
Your position in such an audit is greatly strengthened if you have already come into compliance with the recent A-B-C guidelines. It will help to reduce the substantial financial consequences associated with misclassification of an independent contractor, and reduce exposure to back taxes and benefit compensation going forward.
The look back period under this provision of the law is four to seven years, so many San Diego companies will be forced to sweat out the clock for four years after coming into independent contractor compliance. The costs of avoiding this issue are extremely high, and often force companies to go out of business.
There are several issues with coming into compliance with 1099 workers in San Diego. You will need to consider the transition of existing 1099 workers and independent contractors to a status of “employee.” This often includes careful negotiations and the development of a legal strategy designed to ensure compliance while providing a palatable experience for your present independent contractors. The new employment agreement must contain important provisions such as individualized arbitration as provided for by the recent SCOTUS Epic Systems decision.
It will be important to carefully plan and execute a legal transition to ensure coming into compliance with 1099 workers in San Diego. We invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
