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 [...]
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 [...]
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 [...]
There’s more to protecting your company from contingent worker misclassification challenges than just the initial independent contractor (IC) qualification process. Often businesses and contingent workers put considerable effort into qualifying a consultant for IC status and then after the project begins the IC’s status is forgotten. Things change and things happen that may affect the [...]
Washington DC-The IRS sponsors a series of advisory groups comprised of tax and legal professionals from around the country to recommend improvements in the way the IRS does business. The IRS sometimes asks the groups to help solve a problem. One such advisory group is known as “The IRS Small Business/Self-Employed Subgroup.” This advisory group [...]
California’s employee classification law did not get changed in the most recent lawsuit brought by drivers against EGL and one of its subsidiaries. The workers alleged that they were EGL employees who had been misclassified as independent contractors and were deprived of benefits conferred upon them by the Labor Code. They sought money damages for: [...]
WASHINGTON DC-Recently Douglas H. Shulman, Commissioner of the IRS, gave a speech before members of the American Institute of CPA’s (AICPA’s) about changes in the IRS for taxes and new programs. One of the statements he made was, “We…use information reported by the taxpayer to make judgments about…returns to audit.” Top three Red Flags that [...]
Recently a client called and asked me the following question, “An IC – someone you qualified for us last month – suddenly quit the project for personal reasons. He didn’t deliver any deliverables, although he worked about sixty hours on the project. We were wondering if he should be paid anything for his time?” I [...]
I’ve seen companies take legitimate independent contractors and turn them into misclassified employees by the way they are treated. It’s ironic. Many times these consultants want to be an IC, and started out as an IC, but have been transformed into a misclassified worker by the very client who also wanted an IC. How can [...]
I was having lunch the other day with a retired judge who used to regularly hear cases involving worker misclassification. In his career, he had decided hundreds of cases where the primary issue was “Is the worker an Employee or an Independent Contractor?” After we’d finished eating and caught up on our personal lives, and [...]
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