Independent Contractor Compliance Blog

Are They Really an Independent Contractor?

Have you properly classified your consultants and can you prove you did it right? Are you taking the proper precautions to insure your independent contractors are really IC’s? Do you have an expert on staff, or will someone from your HR or Finance team be assigned with the unpleasant task of fighting the professionals who [...]

President Obama Proposes to Increase Spending for IC Compliance and Misclassification Enforcement in 2012

WASHINGTON DC-President Obama’s proposed budget for fiscal year 2012 includes a record $240 million for initiatives specifically related to enforcing IC Compliance and misclassification of workers. This proposed funding is consistent with his often stated goals of closing tax gap loopholes and tightening enforcement on the misclassification of independent contractors. Politicians, at all levels of [...]

Direction and Control: One of the Most Common Mistakes Companies Make When Engaging Independent Contractors

One of the most common mistakes I see clients make is to turn a consultant, who qualifies and truly wants to be independent contractor, into an employee by controlling every part of the project. The consultant often starts out looking like an independent contractor. The client wants to engage an individual who has a unique [...]

IRS Interest Rates Increase for the Second Quarter of 2011

WASHINGTON-The Internal Revenue Service recently announced that interest rates for the calendar quarter beginning April 1, 2011 will increase by 1%. The new rates will be: 4% for overpayments (credits or refunds), 3% in the case of a corporation; 4% for underpayments (assessments and liabilities); 6% for large corporate underpayments; and 1½% for the portion [...]

Case Study of a Company Who Had Bifurcated Common Law Relationships – Part 1: The Project

I’d like to share a case study about a company that engaged a team of consultants to launch a nationwide marketing and communications effort with both its customers and internally with its own staff. The objective was to upgrade the company’s image with customers and to improve communications with its own employees. No one in [...]

Consolidating and Clarifying the Definition of Independent Contractors: Could it be a New Trend?

AUGUSTA, Maine — Governor Paul LePage recently abolished the Maine task force focusing on employee misclassifications. In addition, Governor LePage is submitting legislation that would use the federal definition of an employee for all state purposes, eliminating the different standards now in use for different state programs. LePage stated during an interview. “The whole point [...]

The FedEx Ground Case Just Keeps On Going…

By now you have most likely heard of FedEx Ground’s decade long legal struggle to determine if their drivers are employees or independent contractors. The case began in California, as a class action law suit for overtime, expenses, benefits and other employee entitlements [Estrada v. FedEx Ground Package Sys. Inc., 64 Cal. Rptr. 3d 327 [...]

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 [...]

Independent Contractors are an Important Component of the Workforce, But Companies That Use Them Must Be Careful

Not sure where this economy is taking us, but need a highly qualified professional for a critical, limited term project? It can be smart to bring in an independent contractor, but only if done right. Everyone agrees the business world and the economy are uncertain. Yet, work must still get done and companies need to [...]

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 [...]

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