It is very common for a company to engage qualified independent contractors (ICs) who: Are true experts Have other clients Market their services to gain new clients Work for a fixed price for a completed job Pay their own expenses Work for several clients (sometimes even competitors) at the same time However, many times these [...]
The American Dream is founded on the belief that an individual can build a business with determination and hard work, starting with nothing except an idea or a skill. Being your own boss — an independent contractor — is at the heart of this dream. Successful independent contractors eventually grow their small business into a [...]
A recent survey by a commercial financial and retirement investment planning firm reported that as many as 64% of those over 55 are not prepared to retire in the traditional sense. This is due mostly as a result of the recent financial market turmoil, however other factors play a role. The report indicated that 77% [...]
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 [...]
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 [...]
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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