Independent Contractor Compliance Blog

Set Goals for Your Employees, But Contract for Deliverables with Your Independent Contractors

I recently read an interesting article entitled, “How setting goals creates happy workers,” by Maynard Brusman, accountingWEB. The author believes the more detail you give workers on what to do, and how to do it, the better. The article advises, “…intelligent managers increase worker productivity by helping their employees develop goals resulting in improved workplace [...]

Are Independent Contractors Protected by Federal and State Disability Discrimination Laws?

The First Circuit Court of Appeals ruled [Cortés-Rivera v. Dep't of Corr. & Rehab. of Commonw. of P.R. (First Circuit No. 09-1858 Nov. 16, 2010)] that the Americans with Disabilities Act (ADA) does not apply to IC’s and that a medical doctor was an IC. But wait! Read on: The court hinted that it could [...]

Will Reimbursing Independent Contractors for Mileage Contribute to Misclassification?

WASHINGTON – The Internal Revenue Service has issued the 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business. Beginning on Jan. 1, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be 51 cents per mile for business [...]

Protecting Your Company from Contingent Worker Status Drift

There’s more to protecting your company from contingent worker misclassification challenges than just the initial independent contractor (IC) qualification process. Often businesses and contingent workers put considerable effort into qualifying a consultant for IC status and then after the project begins the IC’s status is forgotten. Things change and things happen that may affect the [...]

Advisory Group Tells the IRS to Offer an Incentive for Employers to Use the SS-8 Program

Washington DC-The IRS sponsors a series of advisory groups comprised of tax and legal professionals from around the country to recommend improvements in the way the IRS does business. The IRS sometimes asks the groups to help solve a problem. One such advisory group is known as “The IRS Small Business/Self-Employed Subgroup.” This advisory group [...]

Tax Season Will Begin Late in 2011

WASHINGTON-As a result of the legislature waiting until the last possible moment to pass the “Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010″ (this is the “Bush tax extension” which became law on December 17, 2010), the Internal Revenue Service announced that many taxpayers (both paper and electronic filers) affected by this [...]

The Ninth Circuit Court of Appeals Rules That Private Contracts Cannot Override Worker Classification Under California Law

California’s employee classification law did not get changed in the most recent lawsuit brought by drivers against EGL and one of its subsidiaries. The workers alleged that they were EGL employees who had been misclassified as independent contractors and were deprived of benefits conferred upon them by the Labor Code. They sought money damages for: [...]

An Advisory Group Tells the IRS to Offer an Incentive for Employers to Use the SS-8 Program

Washington DC-The IRS sponsors a series of advisory groups comprised of tax and legal professionals from all over the country to recommend improvements in the way the IRS does business. It sometimes asks the groups to help solve an IRS problem. One such advisory group is known as “The IRS Small Business/Self-Employed Subgroup.” They recently [...]

Why Automated Worker Classification Scoring Doesn’t Work (Part 2 of 2)

NOTE: This is the second of two related articles. To read part 1, click here. Depending on a one-size-fits-all automated questionnaire to determine the worker classification of your consultants is dangerous for your company. You could be putting a lot of faith in a slick, easy tool that won’t hold up when the classification is [...]

Can You Automate Independent Contractor Compliance Evaluations? (Part 1 of 2)

Automated worker classification scoring can’t stand up to an expert’s evaluation. Making legally defensible worker classification determinations is not an easy task. It involves gathering information from both the claimed independent contractor and the hiring manager, and then making a correct interpretation of what is often conflicting data. To do it well requires a keen [...]

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