Friday, February 05, 2010

3% Withholding for Independent Contractors/Survey

I am sorry for all the emails but something came up yesterday that could have a serious negative impact to small business. As you all know Small Business California wants to be known as a proactive organization but sometimes we just have to say no.

There is a movement afoot in Sacramento to impose a 3% withholding for independent contractors. So if you hire a sole proprietor or I think a company that is a partnership or LLP you would have to withhold 3% and send it to the state. The money will be held by the state and if there is a return it will be without interest.

Not only will this be a hardship for low margin businesses but another bookkeeping burden placed upon small business.

We need to make our voices heard to our legislators that this is a bad idea.

Please let me know if you would be willing to send a letter to your Assembly person or state Senator. Tell me where you are located.

On a more positive note we had as of 9AM this morning 730 responses to our survey, We got about 400 yesterday. If you haven’t done so already please take a few moments to complete. We will be closing the survey earlier this year due to the overwhelming response we have gotten in the last 5 days


http://www.zoomerang.com/Survey/?p=WEB22A6JHNSTRD


Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188

1 comment:

geni houston said...

The word came down to several of my groups yesterday from the Cal Chamber of commerce. It was posted to The Sonoma County Bookkeepers Network and passed on at the Sebastopol Chamber of Commerce. Not only is this ugly, it is a bookeeping nightmare. We have sample letters and email addresses that came from Cal Chamber and I intend to persue this till it is crushed. I added up the top 100 delinquent sales tax companies yesterday and they total just over $274,469,000.000. What about taking that first!
Geni Houston