What do you do when you realize the legitimate IC you brought in a year and a half ago has evolved into a misclassified employee and your company is now at risk for:
Civil lawsuits for overtime, health benefits, retirement, stock options and other fringe benefits.
A costly tax audit by the IRS or EDD.
Liabilities and fines […]
Did you know:
Over 70% of all employment tax audits result in finding misclassified workers?
The EDD and the IRS win 90% of the cases that go to hearing or trial?
During this recession, the EDD and the IRS have been getting increased funding to enforce IC compliance?
It is too late to prepare for an audit challenge after […]
Many are predicting the economy will be recovering in the next 6 to 18 months. Every thing goes faster these days so once the recovery begins to catch, things will happen fast. The leaders (those who are ready) will get the best accounts and the best workers. Can you afford to sit back and wait until […]
Often times, clients want a quick, easy solution to the IC compliance question.
Unfortunately, a simple answer won’t work when it comes to who is an employee or independent contractor. There is NO universal formula where “if you do this you have an IC…”
Common law is too complex for an easy answer
In the previous article I used the […]
What’s an independent contractor? I just want a simple answer!
Common laws and statutory laws that determine who is an employee or independent contractor are not that simple. There is not a magic pill to prescribe to make someone an IC, or a formula where “If you do [this] you have an IC.”
Whenever I give a seminar […]
Over the years, I’ve found some employers are unaware of specific conformity laws intended to protect their company, but due to confusion around reporting, these laws caused more harm than help. So I thought I’d take a moment to share an example with you. You can thank me later.
Essentially, there are federal “conformity laws” […]
Short answer: If the LLC is organized as a corporation, and is not an attorney, then a 1099 is not required.
LLC’s can be organized in different business structures
“LLC” means “Limited Liability Company.” A LLC is not necessarily a “Corporation.” A mistake many people make is to assume that anyone with an LLC is incorporated. […]
Look anywhere in the media, and you will find indicators that predict there is The Perfect Independent Contractor Compliance Storm threatening American businesses on the horizon.
What indications predict this “Perfect Storm”?
There are powerful economical, legal and political forces merging to create a unique historical situation.
Government at all levels is […]
In an economic downturn when many companies are cutting back, one federal agency is commencing its largest hiring initiative in decades. The IRS plans to hire more than 3,500 additional enforcement agents. Over 2,000 of the new hires will be revenue agents and revenue officers, the IRS announced in a statement made by Deputy […]
Question(s) of the Week-Do you know:
1. How many IC’s are currently providing services in your company?
2. How much your IC’s are costing you?
3. How long a specific IC has worked for you?
4. Is a specific IC meeting your expectations-providing all the deliverables?
5. Will the IC status stand up under a government tax audit?
I’ve met […]
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