In my client work for Collabrus most of the misclassified workers I encounter are Independent Contractors in title only. Where most companies go wrong is they bestow the IC title on a contractor or consultant out of convenience (or fear of losing the talent!), but treat the individual in every other way as an employee. [...]
The White House has endorsed legislation by Senator John Kerry (D-Mass.) and Representative Jim McDermott (D-Wash.) that would protect workers from losing benefits and protections as the result of being misclassified as independent contractors. According to a press release issued by Senator Kerry’s office, the Fair Playing Field Act of 2010, which Kerry and McDermott [...]
A franchisee claims unemployment insurance benefits and causes a subsequent audit and federal court case. Guess what? The court says he’s a misclassified employee! UNITED STATES DISTRICT COURT, DISTRICT OF MASSACHUSETTS-A franchise janitorial service worker, who had purchased his franchise from Coverall North America, Inc., was determined to actually be a misclassified employee. If you [...]
If your ex-consultant is out of work and decides to draw unemployment insurance benefits the EDD may pay them and you may get audited. I have personally seen it happen literally thousands of times in my career as an auditor. The consultant, who insisted on being an IC when the times were good, is now [...]
Law firms and local newspapers around the country are beginning to report that the IRS’ promised 6000 employment tax audits to determine the extent of non compliance and misclassifications of workers is hurting businesses just as they are struggling to save money and stay in business in this tough economy. For example, the Dallas Business [...]
Over the weekend I read an interesting article about a fledgling industry referred to as “e-labor.” The article predicts this new way of engaging freelance workers is growing and “…its success will mirror that of e-commerce…” Source: The Economist print edition, May 13, 2010. http://www.economist.com/business-finance/displaystory.cfm?story_id=16116919 What is E Labor (e-labour)? It is a form of [...]
WASHINGTON-The IRS recently issued a statement notifying taxpayers and tax professionals that it has changed the format and requirements for the Employer Identification Number (EIN) Application. The statement said, “Some applicants for Employer Identification Numbers (“EINs”) have listed nominee individuals, rather than the true responsible party, during the application process. The Internal Revenue Service does [...]
Do you believe the economy is starting to recover? Are you gearing up for future growth and considering independent contractors and contingent workers because they give you flexibility? But are you really ready? Just as you are thinking of increasing the use of IC’s and contingent workers the government is gearing up its workforce of [...]
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