Update 1:

A lucrative new business tax credit may help California’s small businesses hit hard by economic disruption in 2020 and 2021. Governor Gavin Newsom has signed the Main Street Small Business Tax Credit II bill providing financial relief to qualified businesses that have suffered unprecedented job losses. The credit, which can be up to $150,000 per employer, can be used against income taxes or by an irrevocable election, applied to sales and use taxes. To qualify, businesses must have had no more than 500 employees on Dec. 31, 2020, whose wages were subject to CA withholding laws. They must also have seen a decrease of at least 20% in gross receipts. Here are the details: https://bit.ly/3CA61dy

Update 2:

The California Trucking Association (CTA) seeks help from the U.S. Supreme Court. In 2020 the CA worker classification law (AB5) took effect. It applies the ABC test to determine whether workers are employees or independent contractors, with exceptions. A district court granted the CTA and other plaintiffs a preliminary injunction to halt enforcement of AB5. The plaintiffs claim that CA motor carriers are ruled, not by AB5, but by the Federal Aviation Administration Authorization Act. In April 2021, the 9th Circuit U.S. Court of Appeals said the district court abused its discretion in granting the injunction. The CTA has now petitioned the U.S. Supreme Court for a review. Stay tuned. And if you have questions, please contact your Linkenheimer CPA.