Independent Contractor Compliance Blog

The FedEx Ground Case Just Keeps On Going…

By now you have most likely heard of FedEx Ground’s decade long legal struggle to determine if their drivers are employees or independent contractors. The case began in California, as a class action law suit for overtime, expenses, benefits and other employee entitlements [Estrada v. FedEx Ground Package Sys. Inc., 64 Cal. Rptr. 3d 327 [...]

Update on a New Kind of Government Audit

In August I told you about a new approach the U.S. Immigration and Customs Enforcement (ICE) is employing to go after illegal immigrants. The federal government is spending less effort on conducting high-profile police raids of businesses (a tactic used in the Bush Administration) and more time conducting routine audits of employer’s books and records. [...]

Newsflash for California Employers: EDD Changes Reporting Requirements for Employees and Speeds up Revenue Collections

SACRAMENTO-The State of California Employment Development Department (EDD) announced last week that the employee reporting requirements and forms will change effective 2011. Starting with the first quarter of 2011, employers will no longer use the familiar DE 6 or DE 7 to report and reconcile wages and taxes to EDD. The new forms will be: [...]

Massachusetts Clamps Down on Compliance

Massachusetts, possibly the second toughest state on IC compliance behind California, is tightening up compliance one more notch. The Governor of Massachusetts recently signed into law a significant amendment to the state’s workers’ compensation statute. The new law, effective November 7, 2010, authorizes any three private citizens to bring a civil action against employers to [...]

Bill Introduced to Close Independent Contractor “Loophole”

The White House has endorsed legislation by Senator John Kerry (D-Mass.) and Representative Jim McDermott (D-Wash.) that would protect workers from losing benefits and protections as the result of being misclassified as independent contractors. According to a press release issued by Senator Kerry’s office, the Fair Playing Field Act of 2010, which Kerry and McDermott [...]

IRS Clamping Down on Requirements for Employer Identification Number (EIN) Information

WASHINGTON-The IRS recently issued a statement notifying taxpayers and tax professionals that it has changed the format and requirements for the Employer Identification Number (EIN) Application. The statement said, “Some applicants for Employer Identification Numbers (“EINs”) have listed nominee individuals, rather than the true responsible party, during the application process. The Internal Revenue Service does [...]

The Perfect Compliance Storm is Growing

Already one of the toughest states on regulating IC Compliance, the State of New York’s Assembly created a new, tougher IC compliance bill (A11649) on July 8, 2010. The proposed law would: Significantly increase the penalties for “knowing and intentional” independent contractor misclassification. Establish a private right of action for an individual misclassified as an [...]

The IRS is Hiring. Employers Beware!

Want a new job? The IRS is hiring and advertising job opportunities on YouTube! WASHINGTON DC-The Internal Revenue Service announced this week it is using YouTube to market IRS job openings for revenue agents, revenue officers, criminal investigation special agents, financial analysts and economists about employment opportunities at the IRS. IRS Commissioner Doug Shulman said, [...]

There is a New Kind of Government Enforcement Audit to Think About

WASHINGTON – U.S. Immigration and Customs Enforcement (ICE) is employing a quieter, and possibly more effective, approach to going after illegal immigrants employed in the United States. Instead of conducting high-profile police raids of factories, farms and other businesses, ICE auditors are showing up to audit companies’ books. In just the first two weeks of [...]

Wisconsin Becomes the Latest State to Jump on the IC Compliance Band Wagon.

Wisconsin Governor Jim Doyle recently signed into law two pieces of legislation significantly increasing the risks of misclassifying employees. The two laws are Senate Bill 672, and Assembly Bill 929. With these new laws Wisconsin is joining the federal government and most states across the nation in getting tougher on misclassifications of workers. These new [...]

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