1099 Risk Blog

Aberdeen Study Proves ICES Compliance Results

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 . . .

Read Post >

ROI in Enterprise Contract Talent Management

The contingent and contract workforce is both large and important. Yet, in most organizations, it is loosely managed and all but ignored by HR. Are you able to track SOW consultant spend? Is co-employment risk managed? How much does centralized Contingent Workforce Management cost, and is there a return on investment for organizations doing it? If you’re curious to know the costs and benefits of a centrally managed contract talent program, or learn how organizations are saving millions of dollars on their contract and contingent workforce, download this report on the ROI in Enterprise Contract Talent Management.

Read Post >

New GAO Report on Misclassification Sets the Agenda

The GAO recently published a new report on worker classification, and here it is in full text for you: GAO-09-717 Employee Misclassification: Improved Coordination, Outreach, and Targeting Could Better Ensure Detection and Prevention. It seems that the leadership of DOL, OSHA, and IRS agree with the recommendations, and there is energy for the reform of independent contractor classification and compliance. The congressional requesters were Senators Kennedy (may he rest . . .) and Durbin, and Representatives Woolsey and Andrews. This bodes well for H.R. 3408 or similar to make progress . . .  

Read Post >

New Study Underscores Risk of Using Independent Contractors

With the nation facing the toughest economic times since The Great Depression, enterprises are being forced to reevaluate their current labor needs and implement alternative workforce strategies to effectively drive performance without sacrificing time, cost, or quality. A new study released by Aberdeen offers the latest benchmarks and numbers surrounding the use of contract labor, and in particular the risks and challenges for managing the growing sector of independent contractors.  Contract talent, also known as contingent labor, is a multi-faceted category that includes independent contractors and known for its complexity and risks. In 2009, enterprises will do their best to face a demanding economic environment and succeed in their respective contingent labor programs by driving performance from outside experts (managed service providers), automation (vendor management systems), and superior management of independent contractors via Independent Contractor Compliance and Engagement Specialists (ICES) like MBO Partners.

Read Post >

Latest E-Verify Legal Research

The latest legal update on E-Verify compliance for government contractors is now available. Jointly produced by Michael Best & Friedrich LLP and MBO, E-Verify Requirements for Contractors offers a groundbreaking preview of the shape of new regulations to come. In June, Bush signed an Executive Order mandating E-Verify I-9 checks for persons working on government contracts -- both new and existing workers. E-Verify raises sticky issues when it comes to sub-contractors, small vendors, and independent consultants performing work for federal contractors. Even more attention-getting is the risk of getting it wrong -- failure to comply can lead to penalties ranging from fines to debarment from federal contracting. As was revealed at our briefing on Friday, your E-Verify program is only as good as your contractor classification. If you're exposed to contractor reclassification risk, then for every misclassified contractor, you have a de facto employee working on a government contract who you have not E-Verified. But don't take my word for it -- check out the paper, run your own research, and send our your comments and feedback.

Stay tuned for the most up to date info regarding E-Verify. The comment period is closed, and detailed instruction is expected to be released as soon as November.

Read Post >

New GAO Report: Contractors as Contract Specialists

The GAO released a new report yesterday highlighting the use of contractors to serve as defense contract specialists, managing procurement. In just a few short years -- since 2003 when the Center for Contract Excellence (CCE) began using contractors in this role -- their contractor population has swelled to 42% of CCE's contracting force.

Get the report here:

GAO-08-360 Defense Contracting: Army Case Study Delineates Concerns with Use of Contractors as Contract Specialists

Read Post >

Intuit Future of Small Biz Report

The third installment of the Intuit Future of Small Business Report has arrived. A wonderful read, and all three papers in the series are worth consideration.

Download the paper, The New Entrepreneurial Economy.

Read Post >

White Paper: Assessing and Managing Risk

Download this MBO White Paper on Assessing and Managing Risk in Contingent Workforce Management.

Up to date analysis and best practices for engaging 1099s and independent consultants, freelancers, small services suppliers, and so on. Avoid IRS reclassification of contractors to employees.

Read Post >