California’s AB 5 law that aims to get tough on independent contractors has many in the state scrambling to figure out how it applies to their business. Certified public accountants are included.

“Certified public accountants are one group that is working to make sense of California’s AB 5 law because of the many gray areas regarding company classification for exemptions,” Anthony Pugliese, CEO of the California Society of CPAs, told SIA.

Because of the complexity of AB 5 — CalCPA is urging companies to include CPAs with business management and legal to collaborate with them on tax matters and other non-legal issues once worker classification has been made by the client or employer.

Pugliese stressed he’s not speaking either in favor of or against the legislation. It’s a complex issue, he said. On one hand, no one wants to see businesses that are built on a business model that relies on either being a worker or working with independent contractors go out of business.

“We’re trying to deal with the lack of guidance related to the implementation of the new law and will work with lawmakers to assist in further clarification to help companies comply,” Pugliese said.

CPAs are exempt under the law from the ABC test, but the workers a CPA firm might use for limited engagements may not be. CPA firms are entering what is typically their busiest time of year and often rely on a huge influx of talent. Clients are also coming to them with questions, and finding the right answers is the challenge.

The California Society of CPAs, which has some 45,000 members, hosts events across California called “ABC Nights” where attorneys, bankers and CPAs come together to network and discuss topics of interest. How to deal with the complications and challenges of AB 5 in their own firms and how to assist clients has been a constant topic of conversation.

In addition, CalCPA is holding a series of webinars for its members and their business clients about what is known about AB 5 and what is not yet known and best practices they can follow to comply with the new law, and what additional changes may still be coming.

“I’m hoping we see clarifications come out of the legislature this year,” Pugliese said. “There’s not enough implementation guidance and we will need further clarification to best comply with new standards.”