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1099 Risk Blog
March, 17 2010
MBO Partners recently confirmed that Jay Lash has been appointed VP of Market Strategies. Lash, formerly with Allegis Group Services, brings over 25 years of experience in contract talent management and contingent workforce solutions. Knowing that there has been a lot of buzz about Jay’s career move, we brought him in for an exclusive interview on our Contract Talent blog. I tried to ask him ten questions, but he's a busy man, and he drives a hard bargain. We settled on eight. . . .
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March, 17 2010
Who are independent contractors, and what are some of the risk profiles for 1099s? I find that there are generally three prototypical people that become independent contractors. The first person truly wants to be an entrepreneur. She invests in her business and knows it is important to buy the proper business insurances (E&O, General Liability), develop marketing strategies, and in general think of her client as a client and not an employer. She understands the 1099 laws and wants – at all cost – to preserve her independent status as a consultant.
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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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Recent NewsNew Study Details Strategies for Managing the Contingent Labor Umbrella, Including Independent Contractors
August 12, 2010 -- New research on contingent workforce management from Aberdeen highlights a new trend in independent contractor and SOW consultant management: a dramatic increase in the use of Independent Contractor Engagement Specialists (ICES) that help businesses reduce the risks of engaging independent contractors and other contract workers, including misclassification and co-employment risk.
Read the press release >
Visit the newsroom > New ResearchManazing the Complexities of the Contingent Labor Umbrella
This latest research from Aberdeen reports on the dramatic growth in the use of independent contractors, SOW consultants, and services spend, and gives insights on how Best-in-Class organizations are navigating the contingent labor landscape. This year, the report has an expanded scope to include new categories of spend in the contingent workforce, including project / services spend.
Download MBO White PaperMaximizing Talent, Minimizing Risk: Approaches for Compliant Independent Contractor Engagement
Conventional Contingent Workforce Management (CWM) approaches are weak when it comes to independent contractors. But recent innovations are being integrated into VMS/MSP programs with powerful results. This whitepaper shows how to focus on the root cause of independent contractor challenges, rather than symptoms, and reap significant risk mitigation.
Talk With Our ExpertsCall 1-800-220-0469, or complete this form. Our experts will be in touch promptly.
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