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 […]
For each project extension do you draft up a new contract and go blissfully forward thinking you are protected?
I’ve seen the “Status Drift” phenomenon pop up again and again over the years: The three month project that became another three month project that became a six month project that became a semi-permanent engagement ultimately turns […]
One of the most common misunderstandings I encounter involves engaging consultants who have their own corporation-sometimes referred to as “corp-to-corp.” It is a common belief that just because the consultant has his/her own corporation the client company is automatically off the hook for employee misclassification issues.
Forming a corporation is not a misclassification “magic pill.”
Forming a […]
Why does providing items like a computer, email, telephone, office supplies, tools, software applications, workspace, etc. tend to make someone an employee?
Many would argue that since “direction and control” is the primary factor that as long as you let the consultant have freedom on how to do the work he/she is an independent contractor. […]
Often times, clients want a quick, easy solution to the IC compliance question.
Unfortunately, a simple answer won’t work when it comes to who is an employee or independent contractor. There is NO universal formula where “if you do this you have an IC…”
Common law is too complex for an easy answer
In the previous article I used the […]
What’s an independent contractor? I just want a simple answer!
Common laws and statutory laws that determine who is an employee or independent contractor are not that simple. There is not a magic pill to prescribe to make someone an IC, or a formula where “If you do [this] you have an IC.”
Whenever I give a seminar […]
Actually this happens quite often.
I can think of four options.
Continue employing the misclassified worker until you are caught up in a misclassification action such as an employment tax audit, workman’s comp claim, or civil lawsuit.
Terminate the relationship as soon […]
Look anywhere in the media, and you will find indicators that predict there is The Perfect Independent Contractor Compliance Storm threatening American businesses on the horizon.
What indications predict this “Perfect Storm”?
There are powerful economical, legal and political forces merging to create a unique historical situation.
Government at all levels is […]
Question(s) of the Week-Do you know:
1. How many IC’s are currently providing services in your company?
2. How much your IC’s are costing you?
3. How long a specific IC has worked for you?
4. Is a specific IC meeting your expectations-providing all the deliverables?
5. Will the IC status stand up under a government tax audit?
I’ve met […]
The GAO found that an area of particular concern is the collection of federal employment taxes. When considered in light of the government’s need for more revenue, this report will put added pressure on the tax agency to enforce tax laws and collect delinquent taxes.
The IRS acknowledges that it has powerful tools available for […]
powered by WordPress
