To listen to the podcast version of memo click here —> Podcast Version
Business Owners, The NJ Sweeney Bill S4204/A5936 will dramatically change how subcontractors are paid in NJ. This is extremely urgent and requires your action!
Click The Link To Listen To This Related Podcast Who Is A Business? Who Is An Employee? NJ Bills (S4204 & A5936)
First sign my online petition against this Bill here —> https://www.ipetitions.com/petition/urgent-nj-business-owners-the-sweeney-bill-4024
Remember, this is my CPA interpretation of the entire Bill, but trust me, having worked in accounting since 1987, the Bill, as written, could and will be enforced how I describe below.
This needs to be made business friendly.
What should this Bill read?
The law should read that:
Any independently established business,
must never be paid on a W2.
PERIOD.
That is the only rule that needs to be applied and the only rule that makes sense.
What DOES this bill do though, besides be a cash grab from the middle class?
It makes much more strict the rules for who is considered a subcontractor and who is considered a W2 employee.
Here is the wording directly from the new Bill. Item b is the problem. Items a and c are already in place.
- The individual has been and will continue to be free from control or direction over the performance of the service, both under the individual’s contract of service and in fact; and
- The individual’s service is either outside the usual course of the business for which that service is performed; and
- The individual is customarily engaged in an independently established trade, occupation, profession or business of the same nature as that involved in the work performed.
Item b. Used to say.
- The individual’s service is either outside the usual course of the business for which the service is performed, or that such service is performed outside of all the places of business of the enterprise for which such service is performed.
So this new law would give no consideration as to where the services are performed.
This Bill would take employees from one company, where traditionally that company was a subcontractor, and now make them W2 employees of another company, possibly multiple companies.
Here are a few examples that give great detail.
- You are a General Contractor building single family homes. Let’s say you hire another general contractor with its own book of business and employees to frame some new homes. This is a fully functioning separate business entity. The new law would force you to pay that company on a W2, and no longer as a subcontractor on a 1099MISC. This is due to this wording above: “The individual’s service is either outside the usual course of the business for which that service is performed.” A general contractor hiring another general contractor who works in the same course of business forces this to be a W2 relationship, no longer a 1099MISC subcontractor. Also, the main general contractor has to give a W2 to all of the employees of the general contractor he hired. INSANITY.
- You are a snow plower. It is very common to not be able to keep full time workers at the ready for snow that may never come. But, with this new Bill, every temporary snow plow driver you hire, even with their own truck and company, would have to be paid on a W2. And again, their employees would also have to be paid by the main snow plow company on a W2.
- A Law Firm engages another law firm to handle part of a case. This hired law firm has a partner and other lawyers working on the case. All of the hired law firms personnel must be paid on a W2 from the hiring law firm.
Business Owners you need to make your voices heard. If this Bill passes into law it will turn many of us into criminals overnight.
Search for your town below, and click on your district number’s link and call every elected official that represents you and tell them to vote against this Bill or we will vote against them.
But first call the sponsor of the bill and tell him that he needs to rescind his sponsorship and this entire Bill. Tell him this Bill should not be put a vote. Tell him to call a CPA before he attempts any business legislation in the future. I know a good one.
I want to hear from you and your progress. Email me on chriswhalencpa@gmail.com to tell me of any response to your calls that you receive.
Senator Stephen M. Sweeney (D)
(Senate President)
PHONE NUMBERS:
(856) 251-9801 (West Deptford)
(856) 339-0808 (Salem)
Twitter: @SenatorSweeney
Facebook: facebook.com/senatorsweeney
District 1 – (Atlantic, Cape May and Cumberland) Avalon, Cape May, Cape May Point, Commercial, Corbin City, Dennis, Downe, Estell Manor, Fairfield (Cumberland), Greenwich (Cumberland), Hopewell (Cumberland), Lawrence (Cumberland), Lower, Maurice River, Middle, Millville, North Wildwood, Ocean City, Sea Isle City, Shiloh, Stone Harbor, Stow Creek, Upper, Vineland, West Cape May, West Wildwood, Weymouth, Wildwood, Wildwood Crest, Woodbine
District 2 – (Atlantic) Absecon, Atlantic City, Brigantine, Buena, Buena Vista, Egg Harbor City, Egg Harbor Township, Folsom, Hamilton (Atlantic), Linwood, Longport, Margate City, Mullica, Northfield, Pleasantville, Somers Point, Ventnor City
District 3 – (Cumberland, Gloucester and Salem) Alloway, Bridgeton, Carneys Point, Clayton, Deerfield, East Greenwich, Elk, Elmer, Elsinboro, Franklin (Gloucester), Glassboro, Greenwich (Gloucester), Logan, Lower Alloways Creek, Mannington, National Park, Newfield, Oldmans, Paulsboro, Penns Grove, Pennsville, Pilesgrove, Pittsgrove, Quinton, Salem, South Harrison, Swedesboro, Upper Deerfield, Upper Pittsgrove, West Deptford, Woodbury Heights, Woodstown, Woolwich
District 4 – (Camden and Gloucester) Chesilhurst, Clementon, Gloucester Township, Laurel Springs, Lindenwold, Monroe (Gloucester), Pitman, Washington (Gloucester), Winslow
District 5 – (Camden and Gloucester) Audubon, Audubon Park, Barrington, Bellmawr, Brooklawn, Camden, Deptford, Gloucester City, Haddon Heights, Harrison (Gloucester), Lawnside, Magnolia, Mantua, Mount Ephraim, Runnemede, Wenonah, Westville, Woodbury, Woodlynne
District 6 – (Burlington and Camden) Berlin Township, Cherry Hill, Collingswood, Gibbsboro, Haddon, Haddonfield, Hi-Nella, Maple Shade, Merchantville, Oaklyn, Pennsauken, Somerdale, Stratford, Tavistock, Voorhees
District 7 – (Burlington) Beverly, Bordentown, Bordentown Township, Burlington, Burlington Township, Cinnaminson, Delanco, Delran, Edgewater Park, Fieldsboro, Florence, Moorestown, Mount Laurel, Palmyra, Riverside, Riverton, Willingboro
District 8 – (Atlantic, Burlington and Camden) Berlin Borough, Eastampton, Evesham, Hainesport, Hammonton, Lumberton, Mansfield (Burlington), Medford, Medford Lakes, Mount Holly, Pemberton Borough, Pemberton Township, Pine Hill, Pine Valley, Shamong, Southampton, Springfield (Burlington), Waterford, Westampton, Woodland
District 9 – (Atlantic, Burlington and Ocean) Barnegat, Barnegat Light, Bass River, Beach Haven, Beachwood, Berkeley, Eagleswood, Galloway, Harvey Cedars, Lacey, Little Egg Harbor, Long Beach, Ocean Gate, Ocean Township (Ocean), Pine Beach, Port Republic, Seaside Park, Ship Bottom, South Toms River, Stafford, Surf City, Tabernacle, Tuckerton, Washington (Burlington)
District 10 – (Ocean) Bay Head, Brick, Island Heights, Lakehurst, Lavallette, Manchester, Mantoloking, Point Pleasant Beach, Seaside Heights, Toms River
District 11 – (Monmouth) Allenhurst, Asbury Park, Colts Neck, Deal, Eatontown, Freehold Borough, Freehold Township, Interlaken, Loch Arbour, Long Branch, Neptune, Neptune Township, Ocean Township (Monmouth), Red Bank, Shrewsbury Borough, Shrewsbury Township, Tinton Falls, West Long Branch
District 12 – (Burlington, Middlesex, Monmouth and Ocean) Allentown, Chesterfield, Englishtown, Jackson, Manalapan, Matawan, Millstone (Monmouth), New Hanover, North Hanover, Old Bridge, Plumsted, Roosevelt, Upper Freehold, Wrightstown
District 13 – (Monmouth) Aberdeen, Atlantic Highlands, Fair Haven, Hazlet, Highlands, Holmdel, Keansburg, Keyport, Little Silver, Marlboro, Middletown, Monmouth Beach, Oceanport, Rumson, Sea Bright, Union Beach
District 14 – (Mercer and Middlesex) Cranbury, East Windsor, Hamilton (Mercer), Hightstown, Jamesburg, Monroe (Middlesex), Plainsboro, Robbinsville, Spotswood
District 15 – (Hunterdon and Mercer) East Amwell, Ewing, Hopewell Borough (Mercer), Hopewell Township (Mercer), Lambertville, Lawrence (Mercer), Pennington, Trenton, West Amwell, West Windsor
District 16 – (Hunterdon, Mercer, Middlesex and Somerset) Branchburg, Delaware, Flemington, Hillsborough, Manville, Millstone (Somerset), Montgomery, Princeton, Raritan (Hunterdon), Readington, Rocky Hill, Somerville, South Brunswick, Stockton
District 17 – (Middlesex and Somerset) Franklin (Somerset), Milltown, New Brunswick, North Brunswick, Piscataway
District 18 – (Middlesex) East Brunswick, Edison, Helmetta, Highland Park, Metuchen, South Plainfield, South River
District 19 – (Middlesex) Carteret, Perth Amboy, Sayreville, South Amboy, Woodbridge
District 20 – (Union) Elizabeth, Hillside, Roselle, Union (Union)
District 21 – (Morris, Somerset and Union) Berkeley Heights, Bernards, Chatham Borough, Cranford, Far Hills, Garwood, Kenilworth, Long Hill, Mountainside, New Providence, Roselle Park, Springfield (Union), Summit, Warren, Watchung, Westfield
District 22 – (Middlesex, Somerset and Union) Clark, Dunellen, Fanwood, Green Brook, Linden, Middlesex, North Plainfield, Plainfield, Rahway, Scotch Plains, Winfield
District 23 – (Hunterdon, Somerset and Warren) Alexandria, Alpha, Bedminster, Bethlehem, Bloomsbury, Bound Brook, Bridgewater, Califon, Clinton, Clinton Township, Franklin (Hunterdon), Franklin (Warren), Frenchtown, Glen Gardner, Greenwich (Warren), Hackettstown, Hampton (Hunterdon), Harmony, High Bridge, Holland, Kingwood, Lebanon Borough, Lebanon Township, Lopatcong, Mansfield (Warren), Milford, Peapack-Gladstone, Phillipsburg, Pohatcong, Raritan (Somerset), South Bound Brook, Tewksbury, Union (Hunterdon), Washington Borough (Warren), Washington Township (Warren)
District 24 – (Morris, Sussex and Warren) Allamuchy, Andover Borough, Andover Township, Belvidere, Blairstown, Branchville, Byram, Frankford, Franklin (Sussex), Fredon, Frelinghuysen, Green, Hamburg, Hampton (Sussex), Hardwick, Hardyston, Hopatcong, Hope, Independence, Knowlton, Lafayette, Liberty, Montague, Mount Olive, Newton, Ogdensburg, Oxford, Sandyston, Sparta, Stanhope, Stillwater, Sussex, Vernon, Walpack, Wantage, White
District 25 – (Morris and Somerset) Bernardsville, Boonton, Boonton Township, Chester Borough, Chester Township, Denville, Dover, Mendham Borough, Mendham Township, Mine Hill, Morris, Morristown, Mount Arlington, Mountain Lakes, Netcong, Randolph, Rockaway Borough, Roxbury, Victory Gardens, Washington (Morris), Wharton
District 26 – (Essex, Morris and Passaic) Butler, Fairfield (Essex), Jefferson, Kinnelon, Lincoln Park, Montville, Morris Plains, North Caldwell, Parsippany-Troy Hills, Rockaway Township, Verona, West Caldwell, West Milford
District 27 – (Essex and Morris) Caldwell, Chatham Township, East Hanover, Essex Fells, Florham Park, Hanover, Harding, Livingston, Madison, Maplewood, Millburn, Roseland, South Orange, West Orange
District 28 – (Essex) Bloomfield, Glen Ridge, Irvington, Newark, Nutley
District 29 – (Essex) Belleville, Newark
District 30 – (Monmouth and Ocean) Avon-by-the-Sea, Belmar, Bradley Beach, Brielle, Farmingdale, Howell, Lake Como, Lakewood, Manasquan, Point Pleasant, Sea Girt, Spring Lake, Spring Lake Heights, Wall
District 31 – (Hudson) Bayonne, Jersey City
District 32 – (Bergen and Hudson) East Newark, Edgewater, Fairview, Guttenberg, Harrison (Hudson), Kearny, North Bergen, Secaucus, West New York
District 33 – (Hudson) Hoboken, Jersey City, Union City, Weehawken
District 34 – (Essex and Passaic) Clifton, East Orange, Montclair, Orange
District 35 – (Bergen and Passaic) Elmwood Park, Garfield, Haledon, North Haledon, Paterson, Prospect Park
District 36 – (Bergen and Passaic) Carlstadt, Cliffside Park, East Rutherford, Little Ferry, Lyndhurst, Moonachie, North Arlington, Passaic, Ridgefield, Ridgefield Park, Rutherford, South Hackensack, Teterboro, Wallington, Wood-Ridge
District 37 – (Bergen) Alpine, Bogota, Cresskill, Englewood, Englewood Cliffs, Fort Lee, Hackensack, Leonia, Northvale, Palisades Park, Rockleigh, Teaneck, Tenafly
District 38 – (Bergen and Passaic) Bergenfield, Fair Lawn, Glen Rock, Hasbrouck Heights, Hawthorne, Lodi, Maywood, New Milford, Oradell, Paramus, River Edge, Rochelle Park, Saddle Brook
District 39 – (Bergen and Passaic) Bloomingdale, Closter, Demarest, Dumont, Emerson, Harrington Park, Haworth, Hillsdale, Mahwah, Montvale, Norwood, Oakland, Old Tappan, Park Ridge, Ramsey, Ringwood, River Vale, Saddle River, Upper Saddle River, Wanaque, Washington (Bergen), Westwood, Woodcliff Lake
District 40 – (Bergen, Essex, Morris and Passaic) Allendale, Cedar Grove, Franklin Lakes, Ho-Ho-Kus, Little Falls, Midland Park, Pequannock, Pompton Lakes, Ridgewood, Riverdale, Totowa, Waldwick, Wayne, Woodland Park, Wyckoff
Questions? Concerns? Call me on (732) 673-0510.
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Please reach out to me without hesitation with any tax, business or
accounting question, and to schedule a consultation.
Tax Laws are complex.
It is very easy to make mistakes that can incur penalties.
Do you have a Tax, Accounting or Business Question?
Call Me Immediately. (732) 673-0510.
Is your CPA or Attorney
ignoring your Phone Calls and Emails?
Call Me Immediately. (732) 673-0510.
Remember,
“If We Aren’t Working For You, Then You Aren’t Working At Your Best”
Chris Whalen, CPA
(732) 673-0510
81 Oak Hill Road
Red Bank, NJ 07701
www.chriswhalencpa.com
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