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California Assembly Bill 5 (AB-5) took effect on January 1, 2020, and is the new standard by which employers must classify employees. Small business owners (SBOs) should familiarize themselves with AB-5 and the ABC test to avoid employee misclassification and potential penalties from the Internal Revenue Service (IRS).
What is Assembly Bill 5 (AB-5)?
Assembly Bill 5, commonly

Now that the April filing deadline has passed, small business owners may be asking: what’s next?
As tempting as it may be to put off thinking of taxes until next year, some small business owners may be required to respond to an EDD audit.
Read on how to learn how what triggers an EDD audit and how to respond.
What is

The Small Business Administration (SBA) has forgiven over 98% of the total Paycheck Protection Program (PPP) loan value that borrowers requested them to forgive; recently, however, SBA has begun to issue more forgiveness PPP loan forgiveness denials.
Many of these recent denials issued by the SBA are not consistent with their own guidelines. Borrowers have received denial letters based on:

New classification guidelines between W-2 employees and 1099 independent contractors place stricter rules for businesses looking to hire. Common misconceptions about independent contractors can lead to businesses misclassifying workers and paying high penalties and fines. Avoid these consequences by understanding the regulations your business must follow when hiring independent contractors.
Let’s discuss the common misconceptions small businesses have about independent contractors. 

In the final part of our three-part series “how to respond to an IRS audit in 2022,” we’re focusing on the actual response to Internal Revenue Service (IRS).
Watch the video below to learn more from Milikowsky Tax Law’s Founder and Managing Attorney, John Milikowsky, as he explains how to craft the right response.
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John Milikowsky, Founder of Milikowsky Tax Law, often faces these questions: “why do you do what you do?”  and “why are you a tax attorney?” To him, the answer is simple, “I really enjoy keeping businesses in business.”  
Listen to John himself explain why he does what he does- defend businesses against a battle against government agency audits. 
 
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Different business models are able to take advantage of tax benefits based on their structure. Business owners should keep in mind that the type of business formation chosen impacts costs, liability, and team configurations. 
Choosing the right model can set your business up for success because you understand the lay of the land, and avoid paying unnecessary taxes when the

Employment Development Department (EDD) performs many services, but their primary role that impacts small businesses is collecting and auditing payroll taxes. Employers pay payroll taxes for W-2 employees, but not for 1099 independent contractors. 
The line between an independent contractor and an employee was more concretely defined with the implementation of Assembly Bill 5 (AB-5). A worker must