An auditor looking over your books and records will look for familiar patterns for businesses that misclassify workers. For example, an individual receiving a check charged to “contract labor” or “outside services” every two weeks for months on end is a red flag of a possible salary paid to a misclassified worker. An auditor may [...]
According to current U.S. Census Bureau figures: 76 million persons were born in the “baby boom” years, from 1946 through 1964. In 2008, they began to reach age 62-retirement age for Social Security. In 2009, over 2.7 million people were added to the Social Security benefit roles. In 2012, it is anticipated that 10,000 more [...]
There are powerful economical, legal and political forces struggling to decide how prominent the use of independent contractors will be in the United States. The catalysts for this emerging battle are a sluggish world economy, increased international competition, and demographic shifts which are driving a talent shortage. Both sides are becoming more aggressive in the [...]
The universally known facts of today can become the lost, arcane knowledge of tomorrow. Memories fade and change over time. The common knowledge of today becomes lost as people move on and are involved in other projects. Sometimes records are even lost. However, legal challenges, requiring detailed recall of facts and events, can occur several [...]
I hope you don’t hold it against me, but in a previous life I was a tax auditor for the government. As a rank and file auditor I performed approximately 800 audits before becoming a supervisor, then a district administrator and on up the line…From that experience I can tell you firsthand that auditors look [...]
One of the most common misconceptions about worker classification that I encounter with clients is the belief that a written contract defining the relationship with a consultant as that of an independent contractor, responsible for his own taxes, will protect the company from misclassification challenges by either tax agencies, labor law disputes, or in civil [...]
If your managers do not use and support your Independent Contractor (IC) qualification system, no matter how good it is, it won’t be effective, and your company will be at risk for misclassified workers. Many project managers think it’s too much trouble to qualify a consultant-that it’ll slow the progress of the project and cost [...]
Do you want to ensure protection against a misclassification challenge? In the eyes of an auditor, even if you made the proper call on the classification, if it isn’t properly documented it is open to interpretation. One of the ways Collabrus protects you and your high-end consultants is our proven system of documentation for your [...]
WASHINGTON-The US Internal Revenue Service recently released statistics describing IRS activities from Oct. 1, 2009, to Sept. 30, 2010. The release includes information about returns filed, tax collections, enforcement and taxpayer assistance, as well as the IRS budget and workforce. Some IRS statistics for FY 2009-10: Collected $2.3 trillion in revenue Processed 230 million returns [...]
Whenever a consultant who doesn’t qualify for independent contractor status, is pushing back, arguing to be treated as an IC “or else,” I wonder if they have truly thought this through? First, let me begin by stating that this does not apply to the consultants who have clearly established their own business, serve multiple clients [...]
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