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1099 Risk Blog
March, 10 2010
For any large organization, managing the risks of using independent contractors is a tremendous burden. The whole question of 1099 vs W-2 worker classification is perplexing, and the co-employment aspect of 1099 risk plus the fear of contractor lawsuits makes things even murkier. But for federal contractors the bar is set much higher, and the consequences for getting things wrong are far more worrisome. So what's so special about 1099 risk for federal contractors?
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February, 26 2010
The workforce of the Department of Homeland Security is now composed of more contractors than employees. The talent ratio for the Department and its 20 associated agencies was called out Wednesday by Sen. Joe Lieberman and Sen. Susan Collins in the Senate Committee on Homeland Security and Governmental Affairs during budget reviews. The department has 200,000 contractors and 188,000 civilian employees (not including uniformed members of the Coast Guard) for a total workforce of almost 400,000. . .
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February, 3 2010
Monday's release of Obama's 2011 Budget has generated a flurry of excitement regarding an increase of $25 million for the Department of Labor (DOL) to go after worker misclassification in a joint effort with the Treasury. The efforts are expected to increase Treasury receipts by more than $7 billion over a ten year span. But the $25 million line item in the budget doesn't tell the whole story of what's intended for the future of worker classification enforcement in Obama's 2011 budget. Hey . . . what's this $8 billion for the IRS to target critical areas of non-compliance? And why isn't anyone excited about that?? Read on . . .
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January, 21 2010
With the cover of BusinessWeek announcing the era of the “Permanent Temporary Workforce,” it has become clear that the talent economy has fundamentally changed. In a recent USAToday article, “Quarter of Workforce Could Become Temps as Contract Work Grows,” Garry Mathiason of Littler Mendelson affirmed that even as the economy will rebound in coming months, “half the jobs created in the recovery will be filled by contractors, consultants, and other temps.” This Wednesday, January 27th HCI and MBO Partners will present, “Recovery 2010: The Rise of Contract Talent” featuring Bertrand Dussert from American Express.
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January, 14 2010
Oklahoma state Senator Andrew Rice (D-Oklahoma City) has filed Senate Bill 1384 to stop employers from improperly misclassifying workers as independent contractors. The practice of worker misclassification is often an attempt on behalf of businesses to avoid payroll taxes and other costs such as benefits and/or worker's compensation insurance. If the bill passes, Oklahoma will join a host of other states already cracking down on the practice of improperly classifying workers as independent contractors . . .
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January, 11 2010
In a year-end move that should have surprised absolutely no one, Senator Kerry introduced a bill on December 15th 2009 that would make it more difficult for employers to classify workers as independent contractors for purposes of avoiding employment taxes. The Taxpayer Responsibility, Accountability, and Consistency Act of 2009 (S. 2882) would revise Section 530 of the Revenue Act of 1978, known as the “Safe Harbor” provision, which currently allows employers to designate workers as independent contractors . . .
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January, 11 2010
It must have been a happy holiday season for Lynn Rossman Faris, Partner at Leonard Carder and viritually a rock star in the world of class action independent contractor misclassification lawsuits, after the news broke in mid-December. A federal judge in California approved a mediated $12.8 million settlement for a class of 660 UPS drivers denied benefits and overtime due to misclassification as independent contractors. If you follow the FedEx independent contractor misclassification case, you may recognize Faris' name . . .
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January, 10 2010
One of the most dangerous myths in the practice of worker classification -- that arcane process of determining whether to pay a worker as an employee or an independent contractor -- may be the belief that a piece of paper in the form of articles of incorporation makes a substantive difference. In a new legal alert published Friday, law firm Michael Best & Friedrich, LLP explains how the IRS and other agencies determine worker classification, concluding, "Incorporation Not a Substantive Factor in Determining Worker Status." If your legal or accounting . . .
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December, 23 2009
Most days I get bombarded with email invitations to talent management webcasts, promising to teach attendees, presumably HR talent managers, recruiters, and workforce planners, how to source and hire the world’s top talent. I just got another one that reads, “. . . a joint session to discuss what it takes to find and hire the best talent on the planet.” Ok, so we we’ll learn how to hire the best talent on the globe. Really? Beyond the obvious issues of hyperbole, my big objection is this: The best talent on the planet is not for hire. . .
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December, 15 2009
Contingent labor is a reliable strategy to overcome tough economic times. However, enterprises must ensure they are mitigating the risks of using contract talent, in particular with independent contractors, according to a new contingent labor report by Aberdeen Group. The contract workforce report found organizations using an Independent Contractor Engagement Specialist (ICES) are capturing 55% more independent contractor spend through their contingent workforce management program, and driving an independent contractor compliance rate 40% higher than average. By using an ICES vendor . . .
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Recent NewsMBO Partners Appoints Jay Lash VP of Market Strategies
March 1, 2010 -- MBO Partners appointed Jay Lash as VP of Market Strategies. Lash, formerly with Allegis Group Services, brings over 25 years of experience in contingent workforce management, VMS, MSP, and human capital solutions, and will be focused on building strategic partnerships to make it easier for independent contractors and companies to work together in a business climate of increasingly stringent compliance.
Read the press release >
Visit the newsroom > New ResearchContingent Labor Strategies for 2010 and Beyond
This research from Aberdeen benchmarks performance of 200 companies with respect to contingent workforce management. The study found the risks of contingent labor, particularly independent contractors, must be mitigated, while delivering performance across areas like time, cost, and compliance with labor policies and employment law.
See all white papers > Download White PaperE-Verify Requirements for Contractors
Jointly produced by Michael Best & Friedrich LLP and MBO Partners, this paper offers a groundbreaking overview of the legal ramifications and risks for federal contractors required to use E-Verify, with particular attention to how the new regulations apply to independent consultants, independent contractors, small vendors, and other sub-contractors. Get the paper here!
See all white papers > Talk With Our ExpertsCall 1-800-220-0469, or complete this form. Our experts will be in touch promptly.
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