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DarrenS1
Level 1

Setup worker who is Employee under State test and Independent Contractor under Federal test

California Assembly Bill 5 goes into effect on January 1, 2020.  The new law sets forth a new test for determining whether a worker is an employee or independent contractor at the state level.  However, because the California test is different than the Federal test, there are many contractors that we will need to convert to employees for state purposes but we want them to remain as independent contracts at the federal level.

 

I am using Quickbooks 2019 Desktop with Quickbooks Assisted Payroll.

 

How do I set up a worker as an employee at the State level for W-2 purposes and at the same time as an independent contractor at the Federal level for 1099 purposes.

2 Comments
JonpriL
Moderator

Setup worker who is Employee under State test and Independent Contractor under Federal test

Hello @DarrenS1,

 

As much as I'd loved to help you set up your employee or contractor's profile, we have separate support who can better explain your concern for accurate payroll tax reporting.

 

That being said, I'd recommend contacting our Payroll Care Team so someone can help you set up these profiles. With their tools like their tools, he/she will be able to pull up and look into your account, securely.

 

To do so:

  1. Go to Help.
  2. Select QuickBooks Desktop Help.
  3. Tap Contact Us.
  4. Hit Search for something else.
  5. Enter Set up employee or contractor for California Assembly Bill 5 in the Tell us more about your question: field.
  6. Click Start a Message.

Please let me know in the comment section down below if you have any other concerns. I'll be sure to get back to you and help you with your QuickBooks needs.

BigRedConsulting
Community Champion

Setup worker who is Employee under State test and Independent Contractor under Federal test

If they're an employee at the state level, then they're an employee overall.  Same if reversed.

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