Full Service Payroll and HR Outsourcing Services in San Diego South Bay, California
Login Employer & Employee
(858) 967-0417 Call Us Today
  • Home
  • Services
    • Accountants
    • Payroll Services
    • HR Services
    • Time & Attendance
    • Background Checks
    • Workers' Compensation
    • Labor Law Poster Services
  • About Us
    • Testimonials & Reviews
    • Referral Program
  • Areas We Serve
  • Blog
  • Useful Info
  • Contact Us

Facebook Twitter LinkedIn GMB Refer a Client

Full Service Payroll & HR Outsourcing Services
Refer a Client Login
  • Background Checks & Drug Screening (Schedule a Screening)
  • Timekeeper Login (Login to Time & Attendance Portal)
  • WORKFORCE HUB
  • Login (Employer & Employee)

1099 Versus Wage Employees: Who Should You Hire?

Guest Writer Kevin Nash

Payroll Vault San Diego - South Bay Area

 

California is a leader in the changing labor law requirements and our key focal point is ensuring our clients are “labor compliant”.  The ruling by the California Supreme Court regarding what constitutes a -1099-independent contractor versus an employee is a critical topic that will affect most companies, and may have the greatest impact in industries including the professional salon industry, janitorial, hotel/motel, transportation, and security just to name a few.

Image

The court ruled in April 2018 that the following three conditions, named the ABC rules, must be met to qualify the worker as an independent contractor. The worker must:

 

  • be free from the control and direction of the employer in connection with the performance of the work; both under the contract for the performance of such work and in fact
  • perform work that is outside the usual course of the hiring entity’s business
  •  be customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity

 

Originally, the attention of the ruling was on the trucking industry. That said, many industries will be affected by this new ruling. Unless your company, or the independent contractor has taken steps to mitigate these new labor law requirements, it is possible you’re not compliant to the new guidelines and could eventually face a Department of Labor audit. The simple solution is to hire and manage independent contractors as employees.

 

Please note, Payroll Vault is not a legal authority on labor law and our emphasis is on payroll and providing input on labor compliance as part of our service.

 

Other factors that are affected and have associated costs are the payment of employer taxes and sick leave.  Equally, there are also benefits to hiring employees versus independent contractors. 

 

Payroll Vault is a boutique style local payroll services provider that designs payroll for our local small business community. Contact us, or your local Payroll Vault office to learn more about how we can consult with and guide you through the associated costs with hiring employees.

Image

Kevin Nash

Payroll Vault San Diego - South Bay Area

www.payrollvault-san-diego-ca-133.com

 

 

 

Published on:

January 22, 2019

Share this post:

Share Share Share

All, business, hr, payrollvault, Payroll Vault News, tax withholding, withholding, Workforce Management System

Related posts

Understanding Employee Compensation: A Modern Guide to Take-Home Pay copy
June 10, 2025 Understanding Employee Compensation: A Modern Guide to Take-Home Pay copy
Understanding Retroactive Pay: A Comprehensive Guide for Modern Employers
May 08, 2025 Understanding Retroactive Pay: A Comprehensive Guide for Modern Employers
How to Master Payroll Management: 9 Essential Strategies for 2025
April 17, 2025 How to Master Payroll Management: 9 Essential Strategies for 2025
Smart Screening: Modern Solutions for Today's Hiring Challenges
March 06, 2025 Smart Screening: Modern Solutions for Today's Hiring Challenges
How Payroll Systems Work: A Modern Business Guide
February 11, 2025 How Payroll Systems Work: A Modern Business Guide
OSHA Form 300A Posting Begins February 1, Electronic Reporting Due March 2
January 24, 2025 OSHA Form 300A Posting Begins February 1, Electronic Reporting Due March 2
Streamlining Success: 5 Key Benefits of Outsourcing Payroll for Small Businesses
January 21, 2025 Streamlining Success: 5 Key Benefits of Outsourcing Payroll for Small Businesses
Payroll Budget: What to Know When Planning for Employee Pay
January 09, 2025 Payroll Budget: What to Know When Planning for Employee Pay
6 Essential Payroll Best Practices Your Business Should Be Implementing
December 19, 2024 6 Essential Payroll Best Practices Your Business Should Be Implementing
On-Demand Pay: Is it Right for your Business?
December 03, 2024 On-Demand Pay: Is it Right for your Business?

Facebook Twitter LinkedIn GMB

Contact Us

  • (858) 967-0417

  • 750 Otay Lakes Rd #254, Chula Vista,
    California, 91910
  • Monday - Friday,
    9:00 am - 5:00 pm

Get Quote

Useful Links

  • About Us
  • Areas We Serve
  • Blog
  • Useful Info
Newsletter

Our Services

  • Payroll Services
  • HR Services
  • Time & Attendance
  • Background Checks
  • Workers' Compensation
  • Labor Law Poster Services
© 2025
Powered by Seosamba Franchise SEO Strategy
Level Double-A conformance icon, W3C-WAI Web Content Accessibility Guidelines 2.1
  • Background Checks & Drug Screening (Schedule a Screening)
  • Timekeeper Login (Login to Time & Attendance Portal)
  • WORKFORCE HUB
  • Login (Employer & Employee)

1099 Versus Wage Employees: Who Should You Hire? call now mail
Corporate Logo
  • Home
  • Services
    • Accountants
    • Payroll Services
    • HR Services
    • Time & Attendance
    • Background Checks
    • Workers' Compensation
    • Labor Law Poster Services
  • About Us
    • Testimonials & Reviews
    • Referral Program
  • Areas We Serve
  • Blog
  • Useful Info
  • Contact Us
1099 Versus Wage Employees: Who Should You Hire?
logo

Do you want to get notifications from this site?