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1099 Risk Blog

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July, 21 2008 by MBO Partners

States Adopt E-Verify

On July 7th, Missouri joined several other states like Colorado, Georgia, Rhode Island, Utah, and Oklahoma in requiring all state contractors to enroll in E-Verify. E-Verify is an online system jointly administered by the Department of Homeland Security and the Social Security Administration whereby employers can verify the employment eligibility of workers and vett their documents electronically.

Marketed by DHS as an essential tool for employers to ensure they employ only legal workers, the program is voluntary for most employers but required for Federal contractors -- including independent contractors and small services vendors hired to perform work for government agencies. With the states getting in on the act, compulsory enrollment will continue to grow.

Some critics of the program have asserted that there must be funds budgeted to improve the accuracy of the Social Security Administration's record systems, and that the program should be rolled out in phases. Others have pointed out privacy issues as a concern.

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On these pages, we'll be exploring the complex and rapidly evolving business and regulatory conditions surrounding the use of independent contractors, consultants, freelancers, and 1099s.

Companies of all sizes that engage independent contractors for services are subject to myriad risks and responsibilities for using 1099s. We'll keep you updated on the latest from the IRS, case law, breaking news, educational events, and more. Bookmark this page and stay current!

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E-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!

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