Independent Contractor Compliance Blog - by Collabrus™

Are You Ready for an Employment Tax Audit?

You get a letter from the state EDD or the IRS informing you that your company has been selected for an employment tax audit. Are you Ready?
Did you know that:

Over 70% of all employment tax audits conducted result in a finding of misclassified workers?
The EDD and the IRS win 90% of the cases that go […]

Massachusetts Court Allows Employee Damages to an Independent Contractor

Massachusetts-The State Supreme Judicial Court recently issued a ruling that increases the amount of damages a worker can receive if he or she has been misclassified as an independent contractor, even though he was paid at a higher rate than he would have gotten as an employee.  (Somers v. Converged Access, No. SJC-10347)
The company attempted […]

Maryland’s Workplace Fraud Act Designed to Catch Employee Misclassification

The Maryland Department of Labor, Licensing, and Regulation (DLLR) published its proposed regulations to implement the recently enacted Workplace Fraud Act of 2009 (the Act), which took effect on October 1, 2009. While the Act and regulations currently affect primarily those employers in the construction and landscape industries, all Maryland employers should pay close attention […]

What IRS Auditors Look for When Auditing an Independent Contractor

IRS Auditors Look at More Than Accounting Records When Auditing an IC’s Business
Collabrus works on behalf of client companies to help them safely and cost-effectively engage contingent workers in their business. As such, most of the articles I write are employer-centric. In today’s article I will look at the issue of IC Compliance from the […]

Wisconsin Becomes the Latest State to Jump on the IC Compliance Band Wagon.

Wisconsin Governor Jim Doyle recently signed into law two pieces of legislation significantly increasing the risks of misclassifying employees. The two laws are Senate Bill 672, and Assembly Bill 929.
With these new laws Wisconsin is joining the federal government and most states across the nation in getting tougher on misclassifications of workers.
These new laws establish […]

More Information is Surfacing on the U.S. Department of Labor’s Intention to Get Tougher on Worker Misclassifications

I reported to you recently about Deputy Labor Secretary Seth Harris’ speech in Washington DC, before the Center for American Progress (a liberal, pro labor, research group), where he said his department intends to foster a stronger culture of IC compliance among employers to counter a practice he describes as, “They are playing a dangerous […]

Connecticut Joins the Get Tougher on IC Compliance Club

Last month, Connecticut Governor Jodi Rell signed into law “An Act Implementing the Recommendations of the Joint Enforcement Commission on Employee Misclassification.” The legislation marks Connecticut’s joining the Get Tougher on IC Compliance Club, and provides additional conduits for state revenue. This law becomes effective on October 1, 2010.
The new law follows a national trend […]

U.S. Department of Labor is Planning to Get Tougher on Worker Misclassification

Deputy Labor Secretary Seth Harris recently spoke in Washington DC, before the Center for American Progress, and stated his department intends to foster a stronger culture of IC compliance among employers to counter a practice he describes as, “they are playing a dangerous game of catch me if you can, and they are putting workers’ […]

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