Originally posted on Omega HR Solutions Blog. There is a great deal of controversy about the independent contractor and the gig economy. I have written about it a lot, as have many others. People are floating numerous ideas about how to utilize workers beyond the employee versus independent contractor. One such idea has been labeled as the dependent contractor.DependentThe question is what would this dependent contractor be dependent on? The biggest issue is the safety net of benefits, in particular health benefits, that might make the life of an independent contractor easier. This social contract, as it has been labeled, of providing for the health and welfare of all workers needs to be redefined. Currently for the private sector to provide this the worker must be labeled as a W-2 worker. The government providing for it creates an outcry of welfare and is decried.Some people have suggested that anyone using contractors pay into a system that provides a way to pay for health and welfare of contractors. According to one article one company is doing just that. It is far from a universal solution.Trade offFor the time being workers and companies have to decide where they are in the system. Companies that use contractors get the freedom to adjust their workforce on demand, but lose the ability to exert control over that workforce to the level many would like to have. They also have no guarantee of worker commitment and often wonder about the quality of the work they get.The worker that performs as a contractor also has a tradeoff. They can work when and where they want, assuming they can find work to begin with, but they do not have the support they need. Without paying for generally expensive healthcare or having a lot of money in the bank, they have a hard time weathering periods of illness or injury and those associated costs. In the meantime many “gig” workers are on a hunt for the acceptable fulltime job.It will take effortIt will take a concerted effort on the part of employers, workers, and governments to work out the details of a new social contract. It will take openmindness on part of all parties to work out the details of this contract and determine what needs to occur. Hopefully as the new world of work evolves parties will work together to revise what is needed. I suspect that workers and employers will lead the way, let’s hope government won’t be too far behind. read more

CCH Tax Day ReportThe California Board of Equalization (BOE) established the personal income tax adjusted basis of real property sold by taxpayers based on information provided by the taxpayers’ certified public accountant (CPA), who tracked all costs and expenses of construction on the property and maintained bank and other financial records, receipts, and information. A large portion of the documentation needed to substantiate the property’s adjusted basis was lost when the taxpayers changed their professional representative and when their representative’s computer system crashed. However, after consideration of all the evidence, the BOE found that the information compiled and provided by the CPA was the most reliable. Moreover, the CPA stated in a declaration that he was confident that his former employee prepared a competent computation of the adjusted basis prior to the filing of the income tax return for the year the property was sold. The BOE also noted that the evidence submitted by the CPA reflected amounts for capitalized construction loan interest and capitalized mortgage interest included in the adjusted basis reported by the taxpayers. Those amounts were tracked meticulously on a detailed schedule that reflected the exact amounts of interest that were paid and whether the taxpayers had claimed those mortgage interest payments as current year deductions or had capitalized those amounts.Lowe and Berkoff, California State Board of Equalization, No. 571973, January 26, 2017, ¶406-633 read more

Italian car manufacturers, Maserati have announced its re-entry in the Indian market. The renewed focus on the Indian market is in line with Maserati’s growth strategy as the market bears significant potential for the brand over the medium term.Maserati has grown its worldwide annual sales to 36,500 units in 2014 through entering new markets and new additions to its product portfolio. The GranTurismo and GranCabrio were joined by the sixth-generation of the Quattroporte and the new Ghibli- Maserati’s first four door sports executive sedan in the E-segment. All models are being produced in Maserati’s native Italy.Photo Credit: Karan Mathur Maserati enters the market using synergies of the group and will operate out of Fiat Chrysler Automobiles India (FCAI). Three dealerships are planned to open in the major hubs of New Delhi, Mumbai and Bangalore in the third quarter of 2015. AMP Supercars Pvt. Ltd., Bagga Luxury Motocars LLP and Jubilant Autoworks Pvt. Ltd., will be representing Maserati in the respective areas. Dedicated Maserati service facilities, which are fully in line with Maserati global standards, are also planned for all locations. All showrooms and service personnel will be trained by authorized Maserati trainers.The newly appointed Head of Operations for India , Mr Bojan Jankulovski said, “Driving a Maserati is like wearing a tailor-made suit in a world of uniforms. Our re-entry into the Indian market is a commitment to our customers as there is a definitive demand for exclusive luxury products, including cars, in the market. By entering India, and other new markets around the world, we are able to grow by expansion.”advertisementPhoto Credit: Karan MathurUmberto Cini, managing Director, Maserati Middle East, India and Africa said, “Maserati stands for Italian design, performance, craftsmanship and heritage, and of course exclusivity. This new market entry is a significant step for our brand in its over 100 years history. We will focus on exclusivity and hence our goal in terms of annual sales in India will be in the two-digit range.”  Watch this space for more information on Maserati. read more