Judicial tax ruling

[tsano]

I read an article about the Dynamex case in California, which creates a new set of criteria to classify 1099 independent contractors. This potentially affects a client of mine and I am interested if anyone could shed light on how court decisions are implemented. Is there information in the Court Decision about retroactive implementation? For example if a client is paid on 1099 basis and then the organization is forced to pay them as a W2 employee, how will my client learn if they are required to amend a prior return. I would like to be ahead of this if they are caught up in the change.

If anyone is interested in the case, this is a link to an article.

[Rapid Robert]

I read an article about the Dynamex case in California, which creates a new set of criteria to classify 1099 independent contractors.

Everything I've read so far says the decision was NOT about payroll tax or Form 1099 issuance. It was about labor laws such as overtime, worker's comp, and so forth. I have not seen any indication that California EDD is going to change any of their positions for now.

[TAXNJ]

I read an article about the Dynamex case in California, which creates a new set of criteria to classify 1099 independent contractors. This potentially affects a client of mine and I am interested if anyone could shed light on how court decisions are implemented. Is there information in the Court Decision about retroactive implementation? For example if a client is paid on 1099 basis and then the organization is forced to pay them as a W2 employee, how will my client learn if they are required to amend a prior return. I would like to be ahead of this if they are caught up in the change.

If anyone is interested in the case, this is a link to an article.

Interesting article. For Federal issue see TTB tab 5-22. For state issue, the authors of the article provided their email and telephone contact number and may be able to further address your question.

[spanel]

I read an article about the Dynamex case in California, which creates a new set of criteria to classify 1099 independent contractors. This potentially affects a client of mine and I am interested if anyone could shed light on how court decisions are implemented. Is there information in the Court Decision about retroactive implementation? For example if a client is paid on 1099 basis and then the organization is forced to pay them as a W2 employee, how will my client learn if they are required to amend a prior return. I would like to be ahead of this if they are caught up in the change.

If anyone is interested in the case, this is a link to an article.

Why would you need to amend a prior return? To change the $XXXX from contract labor to wages? No dollar amounts will change as any additional taxes paid would not be paid in that year. I don't see why someone would amend.

Chris