Independent Contractor Compliance Blog - by Collabrus™

Wisconsin Becomes the Latest State to Jump on the IC Compliance Band Wagon.

Wisconsin Governor Jim Doyle recently signed into law two pieces of legislation significantly increasing the risks of misclassifying employees. The two laws are Senate Bill 672, and Assembly Bill 929.
With these new laws Wisconsin is joining the federal government and most states across the nation in getting tougher on misclassifications of workers.
These new laws establish […]

More Information is Surfacing on the U.S. Department of Labor’s Intention to Get Tougher on Worker Misclassifications

I reported to you recently about Deputy Labor Secretary Seth Harris’ speech in Washington DC, before the Center for American Progress (a liberal, pro labor, research group), where he said his department intends to foster a stronger culture of IC compliance among employers to counter a practice he describes as, “They are playing a dangerous […]

Connecticut Joins the Get Tougher on IC Compliance Club

Last month, Connecticut Governor Jodi Rell signed into law “An Act Implementing the Recommendations of the Joint Enforcement Commission on Employee Misclassification.” The legislation marks Connecticut’s joining the Get Tougher on IC Compliance Club, and provides additional conduits for state revenue. This law becomes effective on October 1, 2010.
The new law follows a national trend […]

U.S. Department of Labor is Planning to Get Tougher on Worker Misclassification

Deputy Labor Secretary Seth Harris recently spoke in Washington DC, before the Center for American Progress, and stated his department intends to foster a stronger culture of IC compliance among employers to counter a practice he describes as, “they are playing a dangerous game of catch me if you can, and they are putting workers’ […]

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 […]

Independent Contractor Qualification from the Consultant Perspective

Consultants: Do you insist on being treated as an independent contractor even when confronted with evidence that suggests you look more like an employee?
This is a common occurrence in the field. In my role as Director of Compliance for Collabrus I’m an expert advisor to client companies that regularly utilize contingent workers to get vital […]

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 […]

Treasury Department Highlights the Gap in IRS Enforcement of Employee Misclassification

In a report issued last year, the U.S. Treasury Department’s Inspector General bureaucratically criticized the IRS, saying that the misclassification of employees as independent contractors is a nationwide issue affecting millions of workers that continues to grow and contribute to the federal tax gap.*
 
The report said, “The IRS…does not have an agency-wide employment tax […]

Recent Surveys Indicate 40% of Businesses are Planning to Rehire Workers

If you search the web you’ll find no shortage of news stories about how the economy is beginning to pick up, albeit slowly, and that many businesses who had downsized last year are beginning to replenish their labor force.
For example:

CareerBuilder/USA Today surveyed 2,924 hiring managers and reported 26% of employers have already started extending job […]

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