Independent Contractor Compliance Blog

Newsflash for California Employers: EDD Changes Reporting Requirements for Employees and Speeds up Revenue Collections

SACRAMENTO-The State of California Employment Development Department (EDD) announced last week that the employee reporting requirements and forms will change effective 2011. Starting with the first quarter of 2011, employers will no longer use the familiar DE 6 or DE 7 to report and reconcile wages and taxes to EDD. The new forms will be: [...]

Six of the Essentials When Engaging Consultants as Independent Contractors

I’ve seen companies take legitimate independent contractors and turn them into misclassified employees by the way they are treated. It’s ironic. Many times these consultants want to be an IC, and started out as an IC, but have been transformed into a misclassified worker by the very client who also wanted an IC. How can [...]

One of the Most Common Reasons Courts Find Contractors and Consultants to be Employees, Not Independent Contractors.

I was having lunch the other day with a retired judge who used to regularly hear cases involving worker misclassification. In his career, he had decided hundreds of cases where the primary issue was “Is the worker an Employee or an Independent Contractor?”  After we’d finished eating and caught up on our personal lives, and [...]

Massachusetts Clamps Down on Compliance

Massachusetts, possibly the second toughest state on IC compliance behind California, is tightening up compliance one more notch. The Governor of Massachusetts recently signed into law a significant amendment to the state’s workers’ compensation statute. The new law, effective November 7, 2010, authorizes any three private citizens to bring a civil action against employers to [...]

We Often Tell Clients They Have Four Options for Engaging a Misclassified Worker…

Quite often in my client advisory work for Collabrus I present a company with their options if they want to continue down the path of engaging a misclassified, high-end consultant. It usually looks something like this: Hire the consultant as your employee. (This option allows you to safely engage the worker without the risk of misclassification [...]

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