AB 5 and third party payroll provider - Spidell

AB 5 and third party payroll provider

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Message Board AB 5 and third party payroll provider

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    • #267162

      One of our clients has a worker who previously has been treated as an independent contractor, but now should be treated as an employee under AB 5.  The client is a California S corp. and the only ones currently on payroll are the owners.  Could a third party payroll provider or temp agency hire the worker as their employee and then our client reimburse the third party, thereby avoiding having to add them to the payroll and include them in their insurance and retirement plans?  Are there any other tax implications?

      Thank you!

    • #267608
      Lynn Freer

      I think they can use a third party but I’ve personally not dealt with one employee only with a leasing firm. You may have to use a temp agency, which is pretty pricy.

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