Independent Contractor Compliance Blog

Financial Dependence and Independent Contractor Compliance

Here’s a common Independent Contractor compliance question that I’m hearing more often from client companies: Why does the consultant being dependent on a single client make him look more like an employee? A factor that has picked up more importance in the past decade when looking at worker classification is the long term exclusivity of [...]

Independent Contractor Qualification from the Consultant Perspective

Consultants: Do you insist on being treated as an independent contractor even when confronted with evidence that suggests you look more like an employee? This is a common occurrence in the field. In my role as Director of Compliance for Collabrus I’m an expert advisor to client companies that regularly utilize contingent workers to get [...]

Employee Classification: Exploring the Complexity of Making a Legally Correct and Defensible Determination

Determining if someone is an employee or an independent contractor (IC), under common law is one of the most complex and underestimated areas of law in the United States. There are several reasons for this.  Different jurisdictions view the same facts with different purposes, or for different applications, which can result in different conclusions. For [...]

The Tail Wagging the Dog on Independent Contractor Qualification

What’s wrong with saying, “He’s a 1099″ or “She’s a W-2?” How many times have you’ve been in a business meeting and heard someone say something like, “Oh, he’s a 1099, so we don’t need to worry about his taxes…” or “We’re going to 1099 this person…” It’s used as a convenient colloquialism, but once [...]

Treasury Department Highlights the Gap in IRS Enforcement of Employee Misclassification

In a report issued last year, the U.S. Treasury Department’s Inspector General bureaucratically criticized the IRS, saying that the misclassification of employees as independent contractors is a nationwide issue affecting millions of workers that continues to grow and contribute to the federal tax gap.*   The report said, “The IRS…does not have an agency-wide employment [...]

Recent Surveys Indicate 40% of Businesses are Planning to Rehire Workers

If you search the web you’ll find no shortage of news stories about how the economy is beginning to pick up, albeit slowly, and that many businesses who had downsized last year are beginning to replenish their labor force. For example: CareerBuilder/USA Today surveyed 2,924 hiring managers and reported 26% of employers have already started [...]

The Perfect IC Compliance Storm is Here—Have You Protected Your Business?

As long ago as November 2008, I was predicting a crack down on Independent Contractor Compliance, and the broader issue of rampant worker misclassification. Obama Wins-Tax Loopholes Will Tighten Then in February 2009, I predicted there was a storm on the horizon-An IC Compliance Storm. The Perfect IC Compliance Storm is on the Horizon Almost [...]

Survey Confirms California Has One of the Worst Legal Climates in the Nation for Employers

California’s lawsuit climate is one of the worst in the nation, joining Alabama, Louisiana and West Virginia, according to a U.S. Chamber Institute for Legal Reform report released last week.  This conclusion was based upon an annual survey asking 1,482 U.S. corporate lawyers, who represent companies with at least $100 million in revenue, to rank [...]

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