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 [...]
The universally known facts of today can become the lost, arcane knowledge of tomorrow. Memories fade and change over time. The common knowledge of today becomes lost as people move on and are involved in other projects. Sometimes records are even lost. However, legal challenges, requiring detailed recall of facts and events, can occur several [...]
I hope you don’t hold it against me, but in a previous life I was a tax auditor for the government. As a rank and file auditor I performed approximately 800 audits before becoming a supervisor, then a district administrator and on up the line…From that experience I can tell you firsthand that auditors look [...]
Do you want to ensure protection against a misclassification challenge? In the eyes of an auditor, even if you made the proper call on the classification, if it isn’t properly documented it is open to interpretation. One of the ways Collabrus protects you and your high-end consultants is our proven system of documentation for your [...]
WASHINGTON-The US Internal Revenue Service recently released statistics describing IRS activities from Oct. 1, 2009, to Sept. 30, 2010. The release includes information about returns filed, tax collections, enforcement and taxpayer assistance, as well as the IRS budget and workforce. Some IRS statistics for FY 2009-10: Collected $2.3 trillion in revenue Processed 230 million returns [...]
California’s employee classification law did not get changed in the most recent lawsuit brought by drivers against EGL and one of its subsidiaries. The workers alleged that they were EGL employees who had been misclassified as independent contractors and were deprived of benefits conferred upon them by the Labor Code. They sought money damages for: [...]
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 [...]
You get a letter from the state EDD or the IRS informing you that your company has been selected for an employment tax audit. Are you Ready? Did you know that: Over 70% of all employment tax audits conducted result in a finding of misclassified workers? The EDD and the IRS win 90% of the [...]
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 [...]
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