LINKEDIN WRITE-UP — EPISODE 167

You paid your electrician on 1099. He showed up when you called, followed your foreman’s directions, used your gear. You thought you were saving on payroll. California thinks you had an illegal employee.

Under AB5, California presumes every worker is your employee unless you prove all three parts of the ABC Test. Part B is the killer for construction: if the work is your core trade, it can’t qualify as an independent subcontractor arrangement. Framing companies hiring framers. Electrical contractors using 1099 electricians. California says that’s misclassification.

Penalties run $5,000–$15,000 per violation. Willful? $25,000 each. IRS adds back taxes on both sides of FICA. And Section 6672 makes it personal — the IRS can come after you directly if the business can’t pay.

This is fixable — but not after the audit letter arrives.

I broke down the ABC Test, the real financial exposure, and the exact steps to protect your business in Episode 167 of Concrete Numbers.

Watch it here → https://accountingsolutionsllp.com/appointment/

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PHOTOROOM IMAGE PROMPTS (Low Poly 3D — 4 options)
Generate at: https://app.photoroom.com → Create any image → Low Poly 3D style
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IMAGE 1:
A California state tax audit notice on a clipboard beside a hardhat on a job site, faceted crystalline polygons, clean professional low poly 3D style, deep navy and amber accents.

IMAGE 2:
A construction business owner at a desk reviewing worker payroll files and 1099 forms, faceted crystalline polygons, clean professional low poly 3D style, warm amber and steel blue tones.

IMAGE 3:
Two construction workers side by side on a job site, one with a W-2 badge and one with a 1099 form, faceted crystalline polygons, clean professional low poly 3D style, cool slate and orange highlights.

IMAGE 4:
A stack of penalty notices and IRS documents beside a hard hat and blueprint rolls, faceted crystalline polygons, clean professional low poly 3D style, dark slate blue with red-orange warning accents.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.