WASHINGTON – The IRS recently announced that, “Workers who lose their jobs during January and February may qualify for a 65-percent subsidy on their COBRA health insurance premiums, and these newly-eligible individuals, along with those already receiving the subsidy, can now receive it for up to 15 months…” This is an opportunity to help those [...]
WASHINGTON, DC – President Obama signed a presidential memorandum to stop companies who are delinquent in their taxes from collecting on government contracts. While signing the memorandum he stated, “(they are) gaming the system…We need to make sure every tax dollar we spend is going to address our nation’s urgent needs and to make a [...]
The recent Federal Ninth Circuit Court ruling holding the Americans with Disabilities Act and the Rehabilitation Act apply to independent contractors could just be the tip of a huge IC compliance iceberg. Several synopses of the federal appeals court decision granting an independent contractor the right to sue a client company for discrimination reflect a [...]
Up until now, as a general rule, employees enjoyed a series of protections and benefits that independent contractors did not receive. In part, that accounts for IC’s receiving a higher rate of gross reimbursement for their services over their employee-counterparts. Independent contractors are not entitled to unemployment insurance benefits, wage and hour protections, workman’s compensation [...]
What’s next? I’m predicting withholding on IC’s and the repeal of Safe Harbor… For years there has been talk in Washington of “amending” the Safe Harbor Provision of the Internal Revenue Code and of requiring income tax withholding on payments to independent contractors (those who receive a 1099). Looks like the politicians are making a [...]
Under today’s law, if you engage a corporation, or a consultant through his corporation, to perform a service for your company there is no requirement to issue a Form 1099 for the payments made to the corporation. That’s about to change! H.R. 3590, Section 9006, the Heath Care Bill passed by the House of Representatives [...]
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