Independent Contractor Compliance Blog - by Collabrus™

There is a New Kind of Government Enforcement Audit to Think About

WASHINGTON - U.S. Immigration and Customs Enforcement (ICE) is employing a quieter, and possibly more effective, approach to going after illegal immigrants employed in the United States. Instead of conducting high-profile police raids of factories, farms and other businesses, ICE auditors are showing up to audit companies’ books. In just the first two weeks of […]

Short Independent Contractor Quiz

Do you have two minutes? Take this short test to see if you are misclassifying your consultants.
My clients often ask me for the silver bullet, the quick and simple way to know for certain if a consultant is properly classified as an IC or not. 
The truth is there is no silver bullet. Common law is […]

US Supreme Court Ruling Offers Insights to Employer/Employee Relationship

A recent US Supreme Court ruling about text messaging provides some insight on how the Court sees a limited segment of employer-employee relationship.
The U.S. Supreme Court issued a ruling stating employers may conduct limited warrantless searches of electronic media. To read the decision you may go to:  http://www.supremecourt.gov/opinions/09pdf/08-1332.pdf
There were also some implied assumptions about the […]

The Tale of Two Consultants…

Recently, I completed an internal review for a company who wanted to prepare for an anticipated IRS employment tax audit.
Unfortunately, the company waited until they had already been contacted by the IRS before looking at their consultants’ status and proper documentation from a third-party’s objective perspective. It’s too late to lock the barn door after […]

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

Last week Deputy Labor Secretary Seth Harris, speaking in Washington DC before the Center for American Progress (a pro labor research group) said his department intends to foster a stronger culture of IC compliance among employers to counter a practice he describes as follows: “They are playing a dangerous game of catch me if you […]

Are You Ready for an Employment Tax Audit?

You get a letter from the state EDD or the IRS informing you that your company has been selected for an employment tax audit. Are you Ready?
Did you know that:

Over 70% of all employment tax audits conducted result in a finding of misclassified workers?
The EDD and the IRS win 90% of the cases that go […]

Massachusetts Court Allows Employee Damages to an Independent Contractor

Massachusetts-The State Supreme Judicial Court recently issued a ruling that increases the amount of damages a worker can receive if he or she has been misclassified as an independent contractor, even though he was paid at a higher rate than he would have gotten as an employee.  (Somers v. Converged Access, No. SJC-10347)
The company attempted […]

Maryland’s Workplace Fraud Act Designed to Catch Employee Misclassification

The Maryland Department of Labor, Licensing, and Regulation (DLLR) published its proposed regulations to implement the recently enacted Workplace Fraud Act of 2009 (the Act), which took effect on October 1, 2009. While the Act and regulations currently affect primarily those employers in the construction and landscape industries, all Maryland employers should pay close attention […]

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 […]

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