Dozens of tax-related bills were sent to the Governor’s desk on the last day of the 2020 California General Assembly’s session, including:
- AB 323 and AB 2257: These are the AB 5 cleanup bills that expand upon current exemptions from AB 5’s ABC employee classification test, including:
- New exemptions for music and entertainment industry professionals;
- Expanded exemptions for newspaper carriers, journalists, photographers, and other content creators; and
- The easing of the requirements to qualify for the business-to-business exemption and the referral agency exemptions.
The law also states that an employee for payroll tax purposes under AB 5 is also an employee for income tax filing purposes. Absent from the bill is any mention or exemption for Uber/Lyft or other transportation or delivery workers.
- AB 276: This bill conforms to the CARES Act provision that increases the amount of loans that may be taken from qualified plans from $50,000 to $100,000 without the withdrawal being considered a taxable distribution.
The Governor is expected to sign these bills.