It’s not uncommon for fast growing companies to subscribe to the philosophy of avoiding costs today to maximize profits, thinking they can pay them much later, if ever. When you apply this concept to Independent Contractor compliance it sometimes goes like this: “We’ll save money by making our workforce IC’s and take our chances. […]
Clients have expressed confusion and frustration due to the apparent conflicts in applying common law for employee versus independent contractor. These differences are found between almost every enforcement agency-federal and state. The IRS has its legacy 20 Questions and the newer Three Elements of Law. Each state uses either the ABC Test or their own […]
Last time I introduced the First Layer of the infamous Layered Defense Strategy Argument-”I won’t get audited.” This time let’s talk about the next level of this infamous strategy.
The Second Layer:
You are sitting in your conference room, discussing the use of IC consultants and temporary help, and how beneficial this strategy is to your company. […]
We get this question all the time. It goes something like this: If we use a third party payroll service company or an IC vender service company for our contingent workers and ICs are we off the hook for errors or delinquencies?
The short answer:
No, if you are the employer you are the employer and […]
Last week I introduced the infamous Layered Defense Strategy Argument. Over the next few articles, I’m going to break down each part of the argument into separate treatments, so we can see the flaws.
The First Layer:
Only between 2 to 5% of employers are audited in a given year, so the odds of being selected for […]
SAN FRANCISCO– Mayor Gavin Newsom has signed into law a requirement for all San Francisco employers, with 20 or more employees, to offer one of three transit programs to any employee who works 10 hours or more per week within the city limits. Transit advocates say the law will boost Muni ridership and reduce carbon […]
While talking with clients, some questions seem to come up over and over again. In my experience these are universal concerns of businesses that have employees or utilize contingent or temporary help, consultants and independent contractors. So about once per week I’d like to discuss one of these common concerns.
This week’s Question: Can an employee […]
Don’t let your company make the mistake of thinking it can’t get burned in an IC misclassification conflict…that it won’t happen… that if it does you will win…or that the cost will be small.
Don’t be a victim of the infamous Layered Defense Strategy Argument.
Over the years, I’ve met a number of clients who say they […]
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