When keeping employee records, you don’t want to clutter up your files with old papers or terabytes of meaningless data. However, there are some documents (paper and digital) you should store in a safe place for protection should you ever face an independent contractor (IC) misclassification challenge. There are numerous incidents that can trigger an [...]
A recent article cited a survey of more than 1,400 CFOs from U.S. companies that have twenty or more employees on staff. The CFOs were asked: “What common mistake do companies make most in managing their employees?” Here are the three top responses: • Lack of communication between staff and management • Lack of recognition [...]
What can you say to consultants who don’t qualify as independent contractors (ICs) but insist on being treated as such? This has always been a sticky problem. The consultant insists on being classified as an IC and s/he is the very best choice for your project; however, the project or the consultant simply does not [...]
The Internal Revenue Service (IRS) recently released its new tax gap estimates. The tax gap can be defined as the amount of tax liability that is not paid on time for any reason. The estimated annual amount increased from $345 billion in 2001 to $450 billion in 2006, and a significant portion of the gap [...]
Most enforcement agencies consider training an individual on the job as proof that a consultant or independent contractor (IC) is working as an employee. When you train someone in the workplace, you are instructing them on the details of how you expect them to do the job. In fact, a major piece of evidence against [...]
The U.S. Department of Labor (DOL), working with some state employment agencies, is offering training that provides “dislocated workers the opportunity for early re-employment” through self-employment. This means that if someone has lost his/her job and wants to create a small business, there is a federal program than can help. The Self-Employment Assistance Program will [...]
Today, there are more government tax auditors, larger penalties, and a greater probability of being selected for examination than ever before. This makes it more important than ever that you protect your company from the increasing probability of a misclassification audit, a challenge from a labor law agency or even a civil suit from a [...]
Have you thought there must be a commonsense, straightforward approach to understanding the difference between an independent business/contractor and someone who is misclassified? Has the search frustrated you? The answer is easier than most people realize; there are clear ways to view how truly independent businesses operate. These differences define the deciding factors for the [...]
In October, 2011, Governor Brown signed Senate Bill 459 into law making it illegal to willfully misclassify employees as independent contractors. The law provides authority to the California’s Labor Workforce Development Agency to assess civil penalties and take action against a person or employer violating the new law. This law allows California’s Labor Commissioner to levy [...]
If you wonder what LLC stands for, here is your answer: It means “Limited Liability Company”, not “Limited Liability Corporation.” Assuming an LLC is automatically a corporation is a mistake many make. In reality, all LLCs are not corporations and are not automatically an independent contractor (IC) either. An LLC can be organized as almost [...]
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