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 […]
That’s correct! In California, for example, the payer must report the independent contractor to EDD within 20 days of paying or for contracting for $600 or more in personal services. Since you must report the IC just for anticipating paying him/her $600 or more, it is possible the report is due before the first […]
If so, are you treading on thin ice?
What is Safe Harbor?
Some think Section 530 of the IRC is a “Get Out of Jail Free Card.” They think a business that qualifies for Safe Harbor may treat a worker as an Independent Contractor for federal employment tax purposes, (see Thin Ice Warning below) […]
Why does providing a computer, email, telephone, supplies, materials, tools, software applications, workspace, or other material assistance tend to make someone an employee?
The short answer: Because those are the normal items and expenses that an independent contractor (or business) traditionally pays for. Employees expect to receive this apparatus as part of the employment relationship. […]
powered by WordPress
