California Employment Law
California Employment Law Questions Answered by Legal Experts
The employee located in CA does not sell any product or service on behalf of the company.
By tax obligations, I am referring to any and all -- state disability and unemployment as well as any other potential business tax filings that CA may required, if any.
Are there any tax or reporting obligations for WA state employers who contract with independent contractors who reside in CA?
Thanks; the related question was about independent contractors [not employees] with the same scenario of WA / CA. Let me restate:
Last related question on the independent contractor in CA... does a sole proprietor need to set up a business to engage in independent contractor work or can they simply claim the income on a personal tax return?
Good evening,Legally, a sole proprietor/independent contractor needs to establish a business with the city they work in---even if they telecommute. That means a business license generally, in the city where they work. The must pay taxes to the city and the state, and if they have work property---computer phone etc---that they use, they pay a very small tax based on property in use in the business each year.Some folks don't jump through the hoops of a real business---and get away with it because they have no impact on the local economy, don't advertise, etc. But the law says they must have a local business license and pay taxes. How they run THEIR business has no impact on you, though.Please keep in mind that until you rate me highly for my service, I will not be credited with helping you. Thanks again. Have a great day, Doug
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