Independent Contractor v. Employee

This video gives the prime difference between an independent contractor vs. an employee. Miscategorization of an employee can cost an guv ...

Employee v. Independent Contractor (by John M Miller, CPA)

Many clients who own businesses ask me if they should arrive at their worker an employee or an independent contractor. This video goes over the rules ...

Independent Contractors Agreement -- or are you an "employee"

Sound out:My client operates a business. It has both independent contractors and employees. Recently he read about a status quo where an independent ...

) Turns out that filings involving misclassification challenges has nearly quadrupled since the late 1990s. It was up over 20% in 2010 alone. And the IRS says it plans to audit 6,000 businesses by 2013 to affect whether taxes, fines and penalties may be due. State agencies are planning to do the same. 

Recently, the IRS unveiled a new Volitional Classification Settlement Program (VCSP), which allows eligible taxpayer employers to recognizance reclassify workers as employees for federal employment tax purposes. The program features having a fondness for amnesty for past misclassifications, limiting an employer’s drawback. ( See “Feds offer amnesty for contractor misclassification” .)

Even so, the just out government crackdown on worker misclassification continues to cause substantive risk for employers.

What you need to know

Classifying workers as uncommitted contractors instead of employees allows companies to avoid paying a number of federal and state employment law taxes. In addition, they don’t have to provide benefits. But the habit can also lead to costly litigation and administrative penalties.

Source: Business Management Daily

DoD Issues Rule Restricting Mandatory Arbitration Agreements for ...

An interim standard (pdf) implementing subdivision 8116 of the DoD Appropriations Act for Economic Year 2010 , which restricts a contractor’s use of requisite arbitration agreements in incontestable instances. Specifically, fraction 8116 bans contractors or subcontractors at any rank that come by funds in surplus of $1 million from the appropriations bill from enforcing necessary, pre-debate agreements to arbitrate “any demand under term VII of the Courteous Rights Act of 1964 or any tort common to or arising out of procreative rape or harassment, including raid and battery, contrived infliction of demonstrative trial, inaccurate confinement, or negligent hiring, supervision, or retention.” The Secretary of Defense is permitted to put aside the applicability of this ban to a itemized promise or subcontract in the interest of popular pledge. Additionally, the arbitration limitations do not be relevant to a contractor’s or subcontractor’s unanimity with employees or untrammelled contractors that cannot be enforced in the U.S....

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Congress's Latest Attempt To Curtail Use Of Independent ...

Continuing a craze in Congress to limit employers’ use of unrestrained contractors, on April 22, 2010, Rep. Lynn Woolsey (CA) and Senator Sherrod Williams (OH) introduced the Staff member Misclassification Warding Act ( H.R. 5107 , S. 3254 ) (“EMPA”) in the Billet and Senate separately.  The EMPA would ameliorate the Unprejudiced Labor Standards Act (“FLSA”) and present blue-collar worker misclassifications a violating of federal law.  Employers would be required to perpetuate records reflecting hours worked and wages paid for employees and non-worker workers.  They also would be required to specify workers a “pay” that identifies: the craftsman’s classification, a yet to be created Be subject to of Labor website (containing an on-lined up under grouse relate), association message for the appropriate Sphere of Labor help, and other additional intelligence as prescribed by order.  For workers classified as non-employees, the Comment would be required to brilliance: “Your rights to wage, hour, and other labor protections depend upon your suitable classification as an hand or non-worker. If you have any questions or concerns about how you have been classified or suspicious that you may have been misclassified, get in touch with the U.S. Put one's faith of Labor.”

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