Independent Contractor Compliance Blog - by Collabrus™

Nebraska Legislation Cracks Down on Misclassification

When last I reported this Nebraska proposal it was just a bill-now it’s a law!
Nebraska’s governor signed into law new legislation that cracks down on employee misclassification. A press release indicated that Nebraska plans to initially target the construction and trucking industries that have a history of misclassifying workers. However, such laws apply to all […]

New Federal Bill Targets Employee Misclassification

As further evidence of the Federal Government’s stepped up interest in closing the “tax gap” caused by employee misclassification, a new federal bill to get tough on companies that misclassify employees as independent contractors was introduced last Thursday, April 22, 2010, by U.S. Sen. Sherrod Brown (D-OH) and U.S. Rep. Lynn Woolsey (D-CA).
The “Employee Misclassification and […]

Department of Labor Tells Congress it Wants to Get Tough on Worker Misclassifications

The already huge U.S. Department of Labor (DOL) is asking Congress for $116.5 billion in funding and 17,800 full-time employees for fiscal year 2011 budget. During a recent budget hearing, (conducted by the House Appropriations Committee’s Subcommittee on Labor, Health and Human Services, Education and Related Agencies) Labor Secretary Hilda Solis testified that in addition […]

Independent Contractor Compliance and the Boy Who Cried Wolf

Regular readers of this blog might think I’m “The boy who cried wolf,” or perhaps Chicken Little-always crying “The sky is falling”!
I write article after article warning you that enforcement of the independent contractor classifications is toughing up on both the local and national levels. I’ve been calling it the Perfect Compliance Storm for some […]

Can Mid-Sized Businesses Claim Health Care Credit?

The two thousand plus page Health Care and Reconciliation Bills are complex and rich with provisions that will take time to be fully discovered. Many of the provisions create additional costs. For example, the law requires employers to provide health insurance for their employees or face harsh penalties. However, the law also provides some opportunities […]

Health Care and Reconciliation Bills Include Taxes, Plus Fines and Penalties for Non-Compliance

The two thousand plus page Health Care and Reconciliation Bills are complex and rich with provisions that will take time to be fully discovered. In this article I’ll explore some of the new taxes, fines and penalty provisions that affect employers and their workers. Many of the provisions do not take effect immediately, but are […]

The Health Care Bill Provides a Conditional Credit for Small Employers

The two thousand plus page Health Care and Reconciliation Bills are complex and rich with provisions that will take time to be fully discovered. Many of the provisions that create additional costs and that have the greatest effect on our lives, do not take effect immediately, but will be phased in over the next decade.
Here […]

Congress Proposes Another Law to Tighten IC Compliance at the Federal Level.

Washington DC-Senator John Kerry, D-Massachusetts, and Representative Jim McDermott, D-Washington, have both introduced almost identical bills, in their respective houses, that would greatly limit the current provisions of the Section 530 Safe Harbor, require 1099 reporting of payments made to corporations and increase penalties against companies who misclassify workers.
The bills are HR 3408 and S […]

This is a Bad Time to Cut Costs by Improperly Classifying Your Workers

Typically, when the economy struggles businesses try to cut costs. One common method is by employing workers as independent contractors to avoid the costs associated with employees.  This tactic will save money only if it’s done correctly. This is not a good time to do it wrong, because both federal and state governments are gearing […]

IRS Wants to Improve Information Sharing with States on Misclassified Workers

WASHINGTON DC-The IRS’ National Taxpayer Advocate, Nina E. Olson, wants to improve “state information sharing tracking metrics” on misclassified workers.
The Taxpayer Advocate’s report released to Congress, dated December 31, 2009, lists the type of information that is shared between the IRS and local state enforcement agencies.
The IRS receives:

The state income information
Sales information (e.g., from local […]

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