Independent Contractor Compliance Blog - by Collabrus™

California’s Budget Delay May Affect Your Chances of Being Audited—But Only Temporarily

SACRAMENTO-The annual dance in the legislature to get a state budget is having an affect on the state tax auditors ability to travel.
The Sacramento Bee recently reported that the “Franchise Tax Board auditors…spend less time auditing and more time filling out paperwork and figuring out the precise bureaucratic language that will justify work-related trips…”
This is […]

Employees and IC’s Bring Class Action Lawsuits Against Their Employers Every Day

I was doing some research for a project I’m working on, when I started running into example after example of class action lawsuits being brought against companies because they misclassified or miscalculated their worker’s status. 
Many of the examples below were from websites set up to solicit current and former employees and/or IC’s to join in […]

UPDATE: Companies with Government Contracts Told to Verify their Worker’s Status—Other Employers are Pending?

Washington-In June 2008, I reported that the Department of Homeland Security (DHS) and the Social Security Administration (SSA) had joined forces to require private companies doing business with the federal government to ensure their employees are working here legally. At that time the federal government was also considering making this a requirement for all employers […]

NEWSFLASH - Latest Statistics Indicate There are IC Compliance Audits on the Horizon.

SACRAMENTO-The Employment Development Department (EDD) announced this week that California’s seasonally adjusted unemployment rate was 7.3 percent in July. The non-adjusted California rate was 7.6 percent. These are 0.3 percentage point increases over June, and up 1.9 percent from one year ago. In comparison, the U.S. unemployment rate was 5.7 percent in July, up 0.2 […]

Employment Tax Audit Secrets: Part 9 – The Right Way to Argue with Your Auditor

Continuing my series on “things the employment tax auditor might not tell you” we now arrive at a critical juncture. The auditor has examined your records and found a whole list of “exceptions” or alleged “misclassified workers. You’ve argued with him and brought out your best documents to prove you did it right but he’s […]

Employment Tax Auditor Secrets: Part 8 – Sitting Down with the Auditor After They’ve Reviewed Your Accounting Records

In this series I last left you with the auditor humming to him/herself in your quiet room-a busy little bee, digging through a pile of your dusty old accounting books. Whenever you checked in and asked “How’s it going?” you got a little smile and a short, non-committal response like, “Fine…”
Eventually, the auditor will emerge […]

NEWS FLASH: Bill in California Senate Mandating Sick Leave for Everyone Dies in Committee

SACRAMENTO-A bill that would have made it mandatory for all California employers to provide sick leave for any employee (including part-time, seasonal and temporary workers) who had been on the job for at least 90 days was killed this week in the Appropriations Committee.
The bill was introduced by: Assembly Members Laird, Swanson, and Torrico and […]

Wrongly Classified Workers Cost State Tax Revenues

The State of Michigan has a significant number of workers who are being misclassified as independent contractors, hurting tax revenues and breaking state laws, according to a recent report given to Governor Jennifer Granholm.
The Interagency Task Force on Employee Misclassification said workers who are being listed wrongly by businesses as independent contractors rather than employees […]

NEWS FLASH: The San Francisco Board of Supervisors is considering a new commuter law that would apply to all employers with 20 or more employees.

SAN FRANCISCO–Supervisor Ross Mirkarimi has introduced legislation that would require city and county of San Francisco employers to offer one of three pro-transit programs to any employee who works 10 hours or more per week. Not doing so could result in penalties of up to $500. Transit advocates say the law would boost Muni ridership […]

Do You Know What a Temporary Service Employer Is?

Under California law an employer who meets seven tests is a “temporary service employer” and becomes the “Statutory Employer” of the workers (which supersedes common law). Two separate California Codes; the Unemployment Insurance Code (Unemployment Insurance Tax Disability Insurance Tax, Employment Training Tax, Personal Income Tax Withholding and reporting of new employees) and the California […]

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