When keeping employee records, you don’t want to clutter up your files with old papers or terabytes of meaningless data. However, there are some documents (paper and digital) you should store in a safe place for protection should you ever face an independent contractor (IC) misclassification challenge. There are numerous incidents that can trigger an [...]
What can you say to consultants who don’t qualify as independent contractors (ICs) but insist on being treated as such? This has always been a sticky problem. The consultant insists on being classified as an IC and s/he is the very best choice for your project; however, the project or the consultant simply does not [...]
Today, there are more government tax auditors, larger penalties, and a greater probability of being selected for examination than ever before. This makes it more important than ever that you protect your company from the increasing probability of a misclassification audit, a challenge from a labor law agency or even a civil suit from a [...]
Have you thought there must be a commonsense, straightforward approach to understanding the difference between an independent business/contractor and someone who is misclassified? Has the search frustrated you? The answer is easier than most people realize; there are clear ways to view how truly independent businesses operate. These differences define the deciding factors for the [...]
Under the Department of Treasury section: “…The Administration also proposes more than $240 million for a targeted set of new, revenue-generating tax enforcement initiatives aimed at closing the tax gap—the difference between taxes owed and taxes paid. When fully in place by 2014, these new efforts are expected to yield about $1.3 billion a year [...]
Our clients often ask for a few general tips when engaging their independent contractors (ICs). With this in mind, here are five essential steps to getting this done correctly: First, you should have a written agreement that defines a specific deliverable and defines the end of the project. The deliverables should be measureable, ideally with [...]
When asked about the main difference between employees and independent contractors (ICs), you can approach this subject in a couple of ways: First, you could describe what a misclassified worker looks like by listing some red flags that shout “misclassified employee”: 1. The engagement goes on-and-on. 2. The worker attends employee staff meetings and social functions. 3. His [...]
If you manage independent contractors (ICs), I am sure that one of your New Year’s goals is to avoid employee misclassifications. I hereby present you a pertinent story for the holiday season. Earlier this year, the State of New York’s Unemployment Insurance Appeal Board (UIAB) issued a decision regarding an IC who had filed for [...]
Under the Internal Revenue Code the rate of interest charged on amounts owed is determined on a quarterly basis. The official notice of this rate will be announced in an IRS Revenue Bulletin on December 27, 2012; however, the rates are now known for the first quarter of 2013. The interest rates charged taxpayers who [...]
If you are reviewing a consultant’s file and suddenly realize that you have a misclassified independent contractor (IC), you must address the issue right away. If you’re thinking: “I will ignore it…it’ll go away when the project ends”, the consequences of your decision can cause trouble. The longer the misclassification goes uncorrected, the more likely [...]
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