Since California AB5 passed, it is critical for linguists who want to remain independent contractors to take some steps to be more business-like.
The most important step to take is to get an EIN (Employer Identification Number.) Getting an EIN is free and takes less than 3 minutes via the IRS website.
Other things that support the case for being independent and sharpen independent contractors’ business chops are:
- Business cards
- A record of how their service is marketed
- Working for multiple clients
- Buying insurance in the business’ name
- Being incorporated or having a payroll nails it, of course!
AB5 allowed for an exemption to 22 occupations including doctors, dentists, lawyers, engineers, accountants, architects, Realtors, travel agents, graphic designers, human resources administrators, grant writers, marketers, fine artists, investment advisors, and broker-dealers.
Many language service companies recently prevailed against the EDD, using the traditional factors to determine employee classification. Various business labor leaders like ADP predict that our risks are somewhat mitigated by following the standard practices and using modern technology to pay and contract workers.
However, we see huge similarities between our services and the red items above; how were those businesses picked? As multilanguage services businesses, we would greatly appreciate not having to fear or face costly audits; the linguists would appreciate not having to take unnecessary steps, like those above, if they were provided an exemption from this law.
The Association of Language Companies and other groups delivered thousands of signatures to the author of the bill and still, linguists were not exempted from the law. Language workers are trying to organize to get an exemption for Linguists.
We hope to have an update soon!
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