Independent Contractor Compliance Blog - by Collabrus™

Bad Advice for Employers Who Utilize Independent Contractors – Continued

Last time I critiqued a website article published by a contingent work force vender company. This is part 2 of that series.
The website article cited a University of Arizona study but failed to provide full information about the study and then gave bad advice if you employ highly skilled professionals. I have analyzed this article […]

Classic Misclassified Worker Scenario

One more domestic story from my stay-at-home week: the neighbor’s kid takes a freelance job.
I was recently home for a week watching television, sleeping and fighting off a bug. I was feeling better later in the week and took a walk around the neighborhood. As I passed my neighbor’s house, their 23 year old daughter […]

Short Independent Contractor Quiz

Do you have two minutes? Take this short test to see if you are misclassifying your consultants.
My clients often ask me for the silver bullet, the quick and simple way to know for certain if a consultant is properly classified as an IC or not. 
The truth is there is no silver bullet. Common law is […]

US Supreme Court Ruling Offers Insights to Employer/Employee Relationship

A recent US Supreme Court ruling about text messaging provides some insight on how the Court sees a limited segment of employer-employee relationship.
The U.S. Supreme Court issued a ruling stating employers may conduct limited warrantless searches of electronic media. To read the decision you may go to:  http://www.supremecourt.gov/opinions/09pdf/08-1332.pdf
There were also some implied assumptions about the […]

The Tale of Two Consultants…

Recently, I completed an internal review for a company who wanted to prepare for an anticipated IRS employment tax audit.
Unfortunately, the company waited until they had already been contacted by the IRS before looking at their consultants’ status and proper documentation from a third-party’s objective perspective. It’s too late to lock the barn door after […]

Financial Dependence and Independent Contractor Compliance

Here’s a common Independent Contractor compliance question that I’m hearing more often from client companies: Why does the consultant being dependent on a single client make him look more like an employee?
A factor that has picked up more importance in the past decade when looking at worker classification is the long term exclusivity of the […]

Employee Classification: Exploring the Complexity of Making a Legally Correct and Defensible Determination

Determining if someone is an employee or an independent contractor (IC), under common law is one of the most complex and underestimated areas of law in the United States.
There are several reasons for this. 
Different jurisdictions view the same facts with different purposes, or for different applications, which can result in different conclusions.
For example:
Most state workman’s […]

The Tail Wagging the Dog on Independent Contractor Qualification

What’s wrong with saying, “He’s a 1099″ or “She’s a W-2?”
How many times have you’ve been in a business meeting and heard someone say something like, “Oh, he’s a 1099, so we don’t need to worry about his taxes…” or “We’re going to 1099 this person…”
It’s used as a convenient colloquialism, but once the magic […]

How to Be Ready Before the Worker Classification Audit Hits Your Company

I’m seeing an increased number of businesses being audited for worker misclassifications by both state and federal agencies.
In the past several months I’ve encountered a significant increase in the number of businesses who are currently being audited for employment taxes and misclassified workers by the IRS or a state employment tax agency. Oftentimes they are […]

Quick and Dirty Independent Contractor Quiz

Do you have two minutes? Take this short test to see if you are misclassifying your consultants.
Clients often ask us for the magic pill, the quick and simple way to know if a consultant is properly classified as an Independent Contractor (IC) or not. The truth is there is no simple test. Common law is […]

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