In 2012 both state and federal governments are turning up the pressure on employers that misclassify workers. Governments need money and view the additional taxes, penalties and interest for violators as a way to get it. At the Federal level Obama’s 2012 budget provides for increased worker misclassification enforcement. These paragraphs were taken directly from [...]
There is nothing inherently wrong with out-of-state staffing companies wanting to do business in California. Yet problems often arise if they fail to understand California’s strict independent contractor (IC) classification rules and environment. Most other states have lenient rules to establish independent contractors compared to California. Oftentimes staffing companies establish a successful system for IC [...]
Governor Brown recently signed Senate Bill 459 into law making it illegal to willfully misclassify employees as independent contractors. The law provides authority to the California’s Labor Workforce Development Agency to assess civil penalties and take action against a person or employer violating the new law. This law allows California’s Labor Commissioner to levy a [...]
If your company is audited by a tax agency and you appeal their decision, typically the case will then be decided by an Administrative Law Judge (ALJ). There are fewer strict requirements to be an ALJ than for a full-judicial judge in either a civil court or a federal court. This is important to know [...]
According to current U.S. Census Bureau figures: 76 million persons were born in the “baby boom” years, from 1946 through 1964. In 2008, they began to reach age 62-retirement age for Social Security. In 2009, over 2.7 million people were added to the Social Security benefit roles. In 2012, it is anticipated that 10,000 more [...]
There are powerful economical, legal and political forces struggling to decide how prominent the use of independent contractors will be in the United States. The catalysts for this emerging battle are a sluggish world economy, increased international competition, and demographic shifts which are driving a talent shortage. Both sides are becoming more aggressive in the [...]
Each year, for the past several years, both houses of Congress have introduced bills to really toughen up on worker misclassification. Each year the bills have quietly died in committee because of higher priority issues, such as: elections, stimulus, health care reform, wars, deficits, etc. Here comes a new legislative season and another run on [...]
President Obama is expected to sign a bill repealing the law requiring all businesses to file 1099 forms with the IRS for payments to any business totaling $600 or more for goods or services, including payments to corporations. The provision had been part of healthcare reform law, known as the Patient Protection and Affordable Care [...]
Washington DC-Congress wants to repeal the new law requiring 1099′s for payments to corporations. This is the requirement the IRS had been asking congress for, and finally got in the 2000+ page Patient Protection and Affordable Care Act (the Health Care Law). The problem isn’t whether to repeal the requirement for 1099′s-the politicians mostly agree [...]
WASHINGTON DC-President Obama’s proposed budget for fiscal year 2012 includes a record $240 million for initiatives specifically related to enforcing IC Compliance and misclassification of workers. This proposed funding is consistent with his often stated goals of closing tax gap loopholes and tightening enforcement on the misclassification of independent contractors. Politicians, at all levels of [...]
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