INDEPENDENT CONTRACTOR WITHHOLDING PROPOSAL

INDEPENDENT CONTRACTOR WITHHOLDING PROPOSAL: "The California Chamber of Commerce follows legislation and tries to protect California businesses. There is currently a proposal looming that will force small businesses to make interest free loans to the state. It would require businesses and public agencies to withhold 3% of payments to independent contractors. This money would be sent to the Franchise Tax Board instead of being in the independent contractors pocket, thereby making them able to keep their business going. This will severely hurt small businesses because of the tax compliance requirements that will need to be implemented and further hurt those that are independent contractors because they will be missing out on 3% of their income until they file their California taxes (if they file) and get a refund.

If you are interested in finding out more information, visit http://www.calchamber.com/alert/alert_2-5-10-4.htm

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