Independent Contractor Compliance Blog

Last year I wrote in the article Classic Misclassified Worker Scenario about a conversation with my neighbor’s daughter, who recently graduated from college and accepted a position as a freelance, independent contractor (IC) software engineer. I won’t mention the company’s name. Last year she was excited about her booming career. She’d anticipated the IC position [...]

There are powerful economical, legal and political forces struggling to decide how prominent the use of independent contractors will be in the United States. The catalysts for this emerging battle are a sluggish world economy, increased international competition, and demographic shifts which are driving a talent shortage. Both sides are becoming more aggressive in the [...]

The universally known facts of today can become the lost, arcane knowledge of tomorrow. Memories fade and change over time. The common knowledge of today becomes lost as people move on and are involved in other projects. Sometimes records are even lost.  However, legal challenges, requiring detailed recall of facts and events, can occur several [...]

Washington DC-Recently IRS Commissioner Doug Shulman spoke at the National Press Club about his vision of the IRS in the future. I think his vision provides some interesting insights into how the IRS looks at compliance-not only income tax but also misclassifications and employment taxes. Shulman is expecting the IRS to receive more money to [...]

This question was asked at a recent Collabrus seminar in San Francisco by an HR person, not an expert on legal entities and IRS reporting requirements. “It depends on how the LLC is organized and reports to the IRS,” I responded. “I don’t understand-it’s an LLC. That’s how it’s organized,” she said. I continued, “Maybe [...]

I hope you don’t hold it against me, but in a previous life I was a tax auditor for the government. As a rank and file auditor I performed approximately 800 audits before becoming a supervisor, then a district administrator and on up the line…From that experience I can tell you firsthand that auditors look [...]