When keeping employee records, you don’t want to clutter up your files with old papers or terabytes of meaningless data. However, there are some documents (paper and digital) you should store in a safe place for protection should you ever face an independent contractor (IC) misclassification challenge. There are numerous incidents that can trigger an [...]
Have you thought there must be a commonsense, straightforward approach to understanding the difference between an independent business/contractor and someone who is misclassified? Has the search frustrated you? The answer is easier than most people realize; there are clear ways to view how truly independent businesses operate. These differences define the deciding factors for the [...]
Our clients often ask for a few general tips when engaging their independent contractors (ICs). With this in mind, here are five essential steps to getting this done correctly: First, you should have a written agreement that defines a specific deliverable and defines the end of the project. The deliverables should be measureable, ideally with [...]
Here’s a fast quiz you can take to get an idea of the level of risk your company is exposed to for being audited, or other misclassification challenges such as a civil lawsuit when hiring independent contractors (ICs). Awareness of your exposure is the first step to protecting yourself. Answer yes or no to the [...]
If you wonder what LLC stands for, here is your answer: It means “Limited Liability Company”, not “Limited Liability Corporation.” Assuming an LLC is automatically a corporation is a mistake many make. In reality, all LLCs are not corporations and are not automatically an independent contractor (IC) either. An LLC can be organized as almost [...]
With the elections over and politicians clamoring for more revenue, it doesn’t take a tax expert to know enforcement is on the rise. Politicians and bureaucrats alike see worker misclassification as a potential goldmine of additional revenues. They push for stronger independent contractors’ (IC) enforcement because, while collecting more money, they can say they are [...]
At one time or another, almost every business has engaged a consultant who insists on being an independent contractor (IC) when s/he really doesn’t meet the qualification test. Often the consultant insists the only way s/he will work is as an IC. Everyone does what they believe is necessary to get the job done. In most [...]
I recently read an article that cited a survey of more than 1,400 CFOs from U.S. companies that have twenty or more employees on staff. These CFOs were asked: “What common mistake do companies make most in managing their employees?” Here are the three top responses: • Lack of communication between staff and management • Lack of recognition [...]
You may ask: Why would I want to change an independent contractor (IC) into an employee? Over the years, I’ve encountered numerous companies that engage the perfect independent contractor and slowly, inadvertently convert him/her into a misclassified employee. Here are some “best practices” of these misguided companies. You may use them to either follow their [...]
At Collabrus, we review working relationships and help clients determine the proper classification for projects and consultants: independent contractor (IC) or employee? If the consultants are ICs, we file the necessary reporting forms. If they are employees, we can put them on our temporary employee payroll and provide a full-range of benefits and protections. We [...]
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