This week, there have been a couple of big stories involving independent contractors -- more specifically, the classification of workers as independent contractors rather than employees (and vice versa). These stories show that worker classification is still a very hot topic, perhaps even more so in the current economic climate.
First, it was reported this week that President Obama's proposed budget includes a $25 million effort to stop the misclassification of employees as independent contractors, with fundi...
By Dan Forman
In February 2010, the IRS commenced its first Employment Tax National Research Project in 25 years. The IRS reports that its two main goals are (1) to secure statistically valid information for computing the Employment Tax Gap (the difference between the taxes collected and taxes owed to the United States government, estimated at approximately $200 billion); and (2) to determine compliance characteristics so IRS can focus on the most noncompliant employment tax areas.
In other words, the IRS is looking into the extent to which businesses comply with employment tax laws and withholding requirements. In each of the next t...
By Dan Forman
Continuing the recent trend in questioniong the propriety of classifying workers as independent contractors instead of employees, the Ninth Circuit reversed an employer's victory on this issue in Narayan v. EGL, Inc. EGL, headquartered and incorporated in Texas, contracts with hundreds of persons and is the employer of hundreds of employees worldwide. EGL enters into contracts with persons intended to be independent contractors (ICs). The ICs lease vehicles and acknowledge that...
By Dan Forman
In February 2010, the IRS commenced its first Employment Tax National Research Project in 25 years. The IRS reports that its two main goals are (1) to secure statistically valid information for computing the Employment Tax Gap (the difference between the taxes collected and taxes owed to the United States government, estimated at approximately $200 billion); and (2) to determine compliance characteristics so IRS can focus on the most noncompliant employment tax areas.
In other words, the IRS is looking into the extent to which businesses comply with employment tax laws and withholding requirements. In each of the next three years, the IRS will select 2000 ...
In addition to its lobbying efforts, the Connecticut Business and industry Association has long produced some terrific programs for businesses. I'm scheduled to speak at two such programs over the next month or two.
- First, on May 13th, the CBIA has refreshed their HR Conference to address issues that are most pressing to businesses today. I'll be speaking during the breakout session on social media. You can download the brochure here. If you attend, feel free to say hi. You can register for the program here.
- Then, on May 20th, I'll be speaking on Wage & Hour Checkup. (Det...
Yesterday's seminar on Wage & Hour Rx, sponsored by the CBIA, went very well and I thank all of the attendees for their great questions and comments. It made for a lively discussion about all things wage & hour.
What were some of the "hot topics"?
- The difference between employees and independent contractors was a big one. Here was one example we discussed. Suppose a HVAC company lands a big contract to install air conditioning in a school. It doesn't have enough staff on its own right now to do the job. It can subcontract another company to do the work; in that case, it's likely that the other compa...
