Remember the Independent Contractor who insisted on being classified as independent when the project was first created? Almost every company has one. It’s now two years later and the project well has dried up. Your former IC needs money, so he goes down to the unemployment office and learns only ex-employees (not ex-independent contractors) are [...]
Nobody wants a permanent house guest-the relative who came to visit for a weekend and is still living with you a year later, and now complains if you don’t fix his favorite food for dinner. In the business world the permanent house guest is very common. It is the Independent Contractor consultant who has been [...]
Don’t ever allow your company and contractor to become so interdependent that neither can exist without the other. I know this sounds overly dramatic at first blush, however, there have been several court cases in the past few years citing this as a major factor contributing to the worker being classified as an employee – [...]
A major factor is emerging in deciding who is an employee or independent contractor-it is known as the Risk of Loss, and it applies to the contractor. Every true business enterprise is exposed to the possibility of losing money even though it works hard. Recent court decisions are giving more weight to this element-the Risk [...]
Tax auditors conducting an employment tax audit look for familiar patterns. The Don’ts in this next group are Red Flags to any tax auditor who is looking at your business. These Red Flags alone will not mean someone is a misclassified worker, but they will cause the auditor to dig deeper. Something you don’t want…. [...]
Many clients I’ve worked with have taken a true Independent Contractor (1099) and slowly turned him/her into an employee (misclassified worker). The following Don’ts are traps that almost guarantee your IC becomes a misclassified worker. They deal with Direction and Control, which is the most important factor in deciding if someone is an employee or [...]
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