What kinds of Proof might be acceptable to prove that an owner, officer, director, etc. is working 30 hours/week to qualify for AB 1672 Guaranteed Issue?

1st off, can you sign the Insurance Company Form?

Signed Statement attesting to actually working, etc….
Certification form working 30 hours

Health Care Reform – AB 1083 pretty much has the SAME requirements to prove that your business, is a bonifide Employer, with bonified common law employees and owner’s who are really working 30+ hours, the same as before under AB 1672.

SHOP’s Employer application on page 2 has a nice simple matrix to show you what documents are needed for each type of business structure, propritorship, corporation, llc, etc.

Please send, (email, fax or 1st class mail)  those to us for review to help you make sure you qualify.

Email Steve a Question

Summary of Carrier Requirements

***Personally, I suggest you put her on payroll.  I’m not qualified to advise which form of business structure works best..

My wife C… is an Officer but not a Member or Owner.
The LLC is a Single Member Disregarded entity that files a Schedule C under my SSN with no K-1 or SE
C… pay was in the form of electronic funds transfers to a joint account with no paper checks so the statement is the only record that exists.

It is easy for me to make a payment to C….

What do you suggest?

Where does it say that Officer’s can get distributions if they are not members?

I can pay anyone any amount I choose.
Partnerships and LLCs must withhold 7 percent on distributions of California source income made to domestic nonresident partners or members when distributions to a particular partner or member exceed $1,500 for the calendar year.
ftb.ca.gov/
C…is not a Member or Partner.
Where is C… Self Employment Tax form?

irs.gov

Schedule 1040 SE Self Employment Tax
In 2009 C… did not receive any payment.

Calif Franchise Tax Board on LLC’s
ftb.ca.gov

Where is C… CA Withholding Form?
ftb.ca.gov/

In 2009 C… did not receive any payment.

Form 568 Booklet – Again – Where does it say that Officers can be compensated only by distributions?
ftb.ca.gov/

It does not.

***Where is C… return showing her separate income?

Nolo Press
How LLC’s are taxed

All of the profits and losses of the LLC “pass through” the business to the LLC owners (called members), who report this information on their personal tax returns.

The IRS treats your LLC like a sole proprietorship or a partnership, depending on the number of members in your LLC.

the LLC owners each pay taxes on their share of the profits on their personal income tax returns (with Schedule E attached).
nolo.com/

Sole Proprietor Partnerships LLC Corporation DE 6 - 9 Biz - Definition

 

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