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Brandon, Esq.
Brandon, Esq., Lawyer
Category: California Employment Law
Satisfied Customers: 1953
Experience:  Has received a certificate of recognition from the California State Senate for his outstanding legal service.
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I am a contractor in California, but get a W2. The company

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I am a contractor in California, but get a W2. The company I work for withholds federal and state taxes, as well as Social Security and Medicare.

My question: Are they required to pay CA state disability and unemployment insurance?

Note we pay our babysitter in a similar way and we DO pay her CA state disability and unemployment.

Thanks for your response - I tried to reach EDD and of course that was an exercise in futility.

Employment-LawExpert :

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Employment-LawExpert :

If you are receiving a W2 and not a1099 then you are considered an employee and not an independent contract. In California, there is a requirement that all employers of employees pay unemployment insurance as a matter of law.

Employment-LawExpert :

Welcome to the chat

Customer:

OK - is there a link to a website that you can provide that states this? I would like to send to my HR department!

Employment-LawExpert :

Please give me about 10 minutes to find it for you

Customer:

Sure thanks

Employment-LawExpert :

Here is something to start with, though there is a better link, I just have to find it for you

Customer:

Ideally I need something that deals with the situation where the person is paid hourly but is given a W2

Customer:

I am certainly in a different category in my company than a regular 'employee' as I work 10-15 hours per week, do not get vacation time or benefits, etc. However I still do get a W2

Customer:

Thanks for looking for me

Employment-LawExpert :

Not a problem. I know exactly the document you are looking for, I just have to find it for you. Sometimes the California websites are difficult to navigate. Please give me a few more minutes

Customer:

sure

Employment-LawExpert :

I should actually ask before I keep looking. Do you make at least $7,000 per year?

Customer:

yes

Customer:

About $100K per year

Customer:

Let me take a look at it

Employment-LawExpert :

Please take your time

Customer:

Is there a specific page that addresses my situation?

Employment-LawExpert :

On page 5 and 6, it explains that an employer hires an employee under the circumstances that you describe.

Employment-LawExpert :

If that is not sufficient, please tell me and I will find you something else

Customer:

I guess the question I have is: what is the difference between myself (a 'W2-contractor' who is treated by CA state government as an employee for tax purposes) and a regular employee

Employment-LawExpert :

If the employer has a policy to give benefits through the company, i.e. health insurance, etc. Then you would not be entitled to those benefits. However, under California Labor Laws, if they provide you with a W2 and not a 1099 they are required to provide you with worker's compensation insurance coverage

Customer:

The differences I see are that my wage is hourly, not annual; I don't count as an FTE; I don't get benefits. Are these actual legal differences, or just internal accounting differences

Customer:

OK - so I am not entitled to health insurance, pension etc.

Customer:

But I am entitled to CA disability, workers comp and unemployment

Employment-LawExpert :

Correct, and additionally, a non-compete may be enforceable against you for a limited amount of time

Customer:

Right

Employment-LawExpert :

Whereas if you were an employee it would not be enforceable

Employment-LawExpert :

Correct

Customer:

OK interesting.

Customer:

It all makes sense and I will write an email to HR

Employment-LawExpert :

Have I fully answered your question today?

Customer:

I thought that I probably was entitled to it if my babysitter who makes $10,000 a year was!!

Employment-LawExpert :

You are in fact correct

Customer:

Thanks for your help - I think I am all set

Brandon, Esq. and other California Employment Law Specialists are ready to help you

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