In my client work for Collabrus most of the misclassified workers I encounter are Independent Contractors in title only. Where most companies go wrong is they bestow the IC title on a contractor or consultant out of convenience (or fear of losing the talent!), but treat the individual in every other way as an employee. [...]
If your ex-consultant is out of work and decides to draw unemployment insurance benefits the EDD may pay them and you may get audited. I have personally seen it happen literally thousands of times in my career as an auditor. The consultant, who insisted on being an IC when the times were good, is now [...]
Last time I critiqued a website article published by a contingent work force vender company. This is part 2 of that series. The website article cited a University of Arizona study but failed to provide full information about the study and then gave bad advice if you employ highly skilled professionals. I have analyzed this [...]
I recently read an article on a website that gave bad advice for those who employ highly skilled professionals-especially independent contractors. The flawed article was based on a University of Arizona study. I won’t cite the author, or organization, publishing the web article; however, we tracked down the original University of Arizona study and a [...]
One more domestic story from my stay-at-home week: the neighbor’s kid takes a freelance job. I was recently home for a week watching television, sleeping and fighting off a bug. I was feeling better later in the week and took a walk around the neighborhood. As I passed my neighbor’s house, their 23 year old [...]
IRS Auditors Look at More Than Accounting Records When Auditing an IC’s Business Collabrus works on behalf of client companies to help them safely and cost-effectively engage contingent workers in their business. As such, most of the articles I write are employer-centric. In today’s article I will look at the issue of IC Compliance from [...]
What’s wrong with saying, “He’s a 1099″ or “She’s a W-2?” How many times have you’ve been in a business meeting and heard someone say something like, “Oh, he’s a 1099, so we don’t need to worry about his taxes…” or “We’re going to 1099 this person…” It’s used as a convenient colloquialism, but once [...]
If you search the web you’ll find no shortage of news stories about how the economy is beginning to pick up, albeit slowly, and that many businesses who had downsized last year are beginning to replenish their labor force. For example: CareerBuilder/USA Today surveyed 2,924 hiring managers and reported 26% of employers have already started [...]
I’m seeing an increased number of businesses being audited for worker misclassifications by both state and federal agencies. In the past several months I’ve encountered a significant increase in the number of businesses who are currently being audited for employment taxes and misclassified workers by the IRS or a state employment tax agency. Oftentimes they [...]
Why does providing items like a computer, email, telephone, office supplies, tools, software applications, workspace, etc. tend to make someone an employee? Many would argue that since “direction and control” is the primary factor that as long as you let the consultant have freedom on how to do the work he/she is an independent contractor. [...]
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