Washington DC-Senator John Kerry, D-Massachusetts, and Representative Jim McDermott, D-Washington, have both introduced almost identical bills, in their respective houses, that would greatly limit the current provisions of the Section 530 Safe Harbor, require 1099 reporting of payments made to corporations and increase penalties against companies who misclassify workers. The bills are HR 3408 and [...]
Last week I attended the 2010 Staffing Industry Analysts (SIA) Executive Forum in Las Vegas. This year’s conference (now in its 19th year) had a theme of “The Upside of the Downturn…Thriving in a Brave New Staffing World.” More than 500 senior executives from staffing, consulting, and human capital services firms gathered for three days [...]
Typically, when the economy struggles businesses try to cut costs. One common method is by employing workers as independent contractors to avoid the costs associated with employees. This tactic will save money only if it’s done correctly. This is not a good time to do it wrong, because both federal and state governments are gearing [...]
Massachusetts – – Comcast has been sued by a former cable installer alleging he was misclassified as an independent contractor instead of a full-time employee and missed out on overtime, health insurance and other benefits. A former cable installer filed suit in the U.S. District Court for the District of Massachusetts, saying Comcast and TriWire [...]
I’m seeing an increased number of businesses being audited for worker misclassifications by both state and federal agencies. In the past several months I’ve encountered a significant increase in the number of businesses who are currently being audited for employment taxes and misclassified workers by the IRS or a state employment tax agency. Oftentimes they [...]
WASHINGTON – The Internal Revenue Service announced this week that interest rates for the calendar quarter beginning April 1, 2010 are: four (4) percent for overpayments for non corporations three (3) percent for overpayments in the case of a corporation; four (4) percent for underpayments for all; six (6) percent for large corporate underpayments; one [...]
WASHINGTON DC- As I shared earlier this week, the IRS’ National Taxpayer Advocate, Nina E. Olson, released her annual report to Congress, (required by federal statute) dated December 31, 2009, warning that (the IRS struggling because) it “is subject to three diverging forces…” Increased responsibility for non-core tax administration duties, Increasing demand for taxpayer service, [...]
In my seminars I tell participants that, “Over 70% of all employment tax audits find misclassified workers, resulting in a tax assessment.” The reason the number is so high is because tax agencies rarely select a company for an employment tax audit unless they suspect there are misclassification errors. This means the auditor shows up [...]
WASHINGTON DC-The IRS’ National Taxpayer Advocate, Nina E. Olson, wants to improve “state information sharing tracking metrics” on misclassified workers. The Taxpayer Advocate’s report released to Congress, dated December 31, 2009, lists the type of information that is shared between the IRS and local state enforcement agencies. The IRS receives: The state income information Sales [...]
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