AB5 Bill

​There’s No Need to Gamble With The New Gig Economy – Or Your Business

Small, mid-size and large corporations, partnerships, LLCs, S-Corporations and nonprofit entities have a better option than wagering whether or not they’ll be affected by the recent legislation taking effect January 1st, 2020.

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AB5 Will Affect How Your Business Operates, No Matter What

Under the ruling, when in doubt – a worker is now considered an employee. This technically means that any existing employee skill cannot be additionally extended by the hiring of a contract worker; companies with 50 or more workers are required by law to enforce this regulation by providing mandatory benefits – including healthcare, unemployment, workman’s comp, and social security contributions.

State and federal agencies will have absolute power and authority:

  • To charge civil penalties of between $5,000 and $25,000 per misclassification violation.
  • To determine any pattern or practice of repeat misclassification, and increase minimum fines to $10,000 per violation.
  • To require the offending company to place a notice of violation on a prominent location of their own website for a minimum period of 1 calendar year.
  • To give the IRS leeway to assess a penalty of 1.5% of the wages paid to any independent contractor – and that penalty doubles up to 3% if the company failed to file an appropriate 1099.
  • To hold the entity liable for all federal income tax which should have been withheld from the independent contractor, and the share of all Medicare and Social Security taxes.
  • To levy a 10% penalty on any unpaid state payroll income tax, which if withheld, can be charged as a criminal misdemeanor offense in the state of California.

The reality of the financial consequences for any entity that chooses to ignore the demands of the Dynamex Opinion will be staggering – for businesses and organizations of ANY size.

JISEKI + MEC Plan Can Help You Maintain Your Competitive Advantage

JISEKI’s plus MEC Plan offering is a simple, accessible, and affordable supplemental benefits plan built around many of the core social determinants of health: Clinical Health, Mental Health, Legal Assistance, Financial Wellness, and Emotional Wellbeing. With JISEKI, you can offer your workers a whole person approach that no one else can – and that satisfies their needs as well as that of your business:

  • Eliminate the possibility of AB5 penalties by offering your employees cutting edge mobile platform industry benefits – at the touch of a button.
 
  • Increase productivity, reduce absenteeism, and improve worker engagement on and off the clock via 24-7 mobile access to care – wherever your workers may be.
 
  • Decrease operational costs by ditching pricey healthcare plan premiums that are rarely used, require doctor’s visits, and take time away from work and home.
 
  • Empower your people – give them the freedom to choose how they interface with their benefits, and loyalty and appreciation will surely follow.

JISEKI + MEC Plan is a great choice for businesses looking to satisfy Dynamex demands – without sacrificing operational costs and simultaneously modernizing how employees receive benefits.”

Disclaimer:
Minimum Essential Coverage (MEC) is the coverage that an individual must maintain to meet the individual responsibility requirement, should not be confused with minimum value (MV), a measure of a plan’s comprehensiveness. These MEC plans are PPACA compliant.
These benefits and rates are illustrative and are not a guarantee of coverage or costs. Actual benefits and rates will be underwritten based on the employee/dependent data submitted. Please refer to carrier and administrator documents for exact specification.
This program is marketed and sold by the licensed agents of Pendella, LLC. Pendella, LLC is a licensed insurance agency based on the State of Florida.