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California Appraisers to get Giggy

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
Many AMCs are now just asking to sign a new agreement acknowledging that we are not employees, accept work from other sources, etc. They don't even care about the EIN vs. SSN. This turned out to be a nothing burger.
 

Sandra Koutsopoulos

Junior Member
Joined
Jul 13, 2005
Professional Status
Certified Residential Appraiser
State
California
CANative--Can one get an EIN without being LLC? Business suddenly slow for me so I'm wondering if it is the AB5 thing. A POX on bureaucrats and politicians! You have given me a sliver of light! I suspect the "gig" workers complaining about inadequate pay who were pushing for this bill thinking they'd make more money per hour and benefits, are finding it difficult to cope with $ZERO per hour!
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
Many AMCs are now just asking to sign a new agreement acknowledging that we are not employees, accept work from other sources, etc. They don't even care about the EIN vs. SSN. This turned out to be a nothing burger.
That's good news for all concerned if it holds up. I thought it was kind of weird to carve an exception out for RE brokers who do work from a common office and not one for appraisers who never even meet most of their clients.
 

Sandra Koutsopoulos

Junior Member
Joined
Jul 13, 2005
Professional Status
Certified Residential Appraiser
State
California
Seems like the purpose of AB5 is actually to increase gov't revenue by $800/year per sole proprietor being forced to form LLCs. I'm reading that Sole Proprietors who uses an EIN for their business cannot use it as a W-9. Since most of our income is by 1099s, does a W-9 even apply? What a windfall for the CA government. What a hardship for us "little guys". Must be time to weed out the "oversupply" of appraisers once again, as they did when the rules changed requiring college degrees... and then switched it back b/c the college degreed people demanded higher pay and didn't rush to become newbie supervised fee-split appraisers.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
CANative--Can one get an EIN without being LLC? Business suddenly slow for me so I'm wondering if it is the AB5 thing. A POX on bureaucrats and politicians! You have given me a sliver of light! I suspect the "gig" workers complaining about inadequate pay who were pushing for this bill thinking they'd make more money per hour and benefits, are finding it difficult to cope with $ZERO per hour!
It's a freebie at irs.gov. Takes 5 minutes or so.

 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
Many of my AMC and Lender clients, instead of demand a new W9 with an EIN, are requesting a revision to the AMC/Appraiser agreement. Something along the lines of this...

This Agreement is entered into as a “business-to-business contracting relationship” as described in Section 2(e) of AB 5. That Section requires as follows:



  • You, the independent contractor, are operating your business as a “sole proprietorship, limited liability company, limited liability partnership, or corporation”, which the Act refers to as a “business service provider.” And, that you are contracting to “provide services to another business,” which the Act refers to as “contracting business.” Section 2(e)(1).
  • You agree that you are “free from the control and direction of the contracting business entity [here, Cxxx] in connection with the performance of the work, both under the contract for the performance of work and in fact.” Section 2(e)(1)(A).
  • You “are providing services [under this Agreement] directly to the contracting business rather than to customers of the contracting business.” Section 2(e)(1)(B).
  • The contract between You and the contracting business entity, which is Cxxx here, must be “in writing.” Section 2(e)(1)(C).
  • If you are performing work “in a jurisdiction that requires [You] to have a business license or business tax registration, [You have] the required business license or business tax registration.” Section 2(e)(1)(D).
  • You maintain “a business location that is separate from the business or work location of” Cxxx. Section 2(e)(1)(E).
  • You are “customarily engaged in an independently established business of the same nature as that involved in the work performed” for Cxxx. Section 2(e)(1)(F).
  • You contract “with other businesses to provide the same or similar services” as provided to Cxxxs, and You maintain “a clientele without restrictions from” Cxxx. Section 2(e)(1)(G).
  • You advertise and hold yourself “out to the public as available to provide the same or similar services” as are provided to Cxxx. Section 2(e)(1)(H).
  • You provide your “own tools, vehicles, and equipment to perform the services.” Section 2(e)(1)(I).
  • You can “negotiate” your “own rates.” Section 2(e)(1)(J).
  • “Consistent with the nature of the work, [You] can set [your] own hours and location of work.” Section 2(e)(1)(K).
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
Businesses use IRS Form W-9, Request for Taxpayer Identification Number and Certification, to get information from vendors they hire as independent contractors (also called freelancers). When a business pays a contractor $600 or more during a tax year, it has to report these payments to the Internal Revenue Service (IRS), using an information return called Form 1099-MISC. Businesses use the name, address, and Social Security number or tax identification number contractors provide on Form W-9 to complete that information return. Neither the sender nor the recipient should send a copy to the IRS.
 

gregb

Elite Member
Gold Supporting Member
Joined
Sep 3, 2011
Professional Status
Certified General Appraiser
State
California
Peter Christensen of LIA is offering a free webinar covering AB5 on 01/10/2020.

 
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