Friday, July 26, 2013

Independent Contractors/ SBDC

The state is embarking on a project having to do with independent contractors. This has been a big issue for small business that cuts two ways.

First I have heard from some of you that you face competition from competitors who are paying cash under the table. This is done to  avoid  withholding and payroll taxes and in many cases your competitors don’t have works compensation.  I have also heard from some of you that EDD will not go after businesses that you know are paying under the table. What ideas do you have to address this?

Second I have heard from some of you  that   you are not clear how to properly  document independent contractor status and some of you have been audited by EDD and ended up paying  penalties for lack of compliance. What can the state do to help small businesses. Do you know what resources are available to you?

I welcome your comments on both issues.

Yesterday I received notice that I have been appointed to the SBA National Advisory Board for the Small Business Development Centers. I am representing District IX. This includes Arizona,California,Guam Hawaii and Nevada. I welcome any comments about the SBDC program.

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA  94116

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