marincounty
Diamond Member
- Nov 16, 2005
- 3,227
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Originally posted by: JeepinEd
Originally posted by: alphatarget1
Originally posted by: marincounty
And California is surrounded by parasiste states like Arizona and Nevada, that are constantly trying to steal our business with property tax breaks and giveaways to corporations. Corporations that have no loyalty to anyone or anything, except profits.
When the next state offers a better deal, they will just pull up and move again.
It's a free country though. CA needs to make adjustments if they want to compete.
And they are doing the exact opposite.
Here is a highly abbreviated example of how California treats businesses:
My company uses independent contractors.
The EDD decided they are not getting enough taxes because of that, so they audited us and fined us over $130K.
We appealed to the EDD's Administrative Law Judge.
The judge ruled in our favor.
The EDD said that's nice, we don't care what the ALJ said, so we're overriding him. Now you have 1 year to pay up!
Since we can't afford lawyers to appeal to a "real" court, we've had to lay people off and will now have to change our business model to meet their desires. Whether or not we'll survive remains to be seen. If we go under, that's over 50 people losing their jobs.
Our IC model has been accepted by all the other states in the Union and was accepted here until the EDD changed it's mind. There is no oversight and unless you have really deep pockets, there is nothing that you can do.
I'm sorry your company got screwed. However, you chose to gamble on an "independent contractor" employment scheme, and got burned.
Maybe if you hired regular employees and paid their taxes you wouldn't be in this situation.
I see companies and govts here abusing the independent contractor status to avoid taxes.
