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1099 Risk Blog
December, 2 2009
Contingent Workforce Management (CWM) might be among the smallest and most obscure fields of corporate expertise relative to its strategic importance to major organizations. On top of that, contract talent is done in starkly different ways. In some companies, the Human Resources department takes the lead, since this is ultimately about talent. In others, Procurement and/or Legal hold the reins because the risk management of independent contractors is key . . .
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November, 17 2009
New Hampshire has jumped into the forefront of my contingent workforce news world by launching a tip-off website for the reporting of suspected misclassification of workers as independent contractors. The inter-agency Task Force for the Misclassification of NH Workers website now has a quick and easy form launched just last week where workers, citizens, agencies, and businesses can report suspected improper classification of employees and independent contractors.
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November, 13 2009
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.
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September, 23 2009
The IRS will audit as many as 6000 companies for employment tax compliance and proper worker classification -- starting in November of 2009. The audits are part of the Treasury's National Research Program and will be the first study of worker misclassification since 1984. Is your company on the list, and do you have a formal process in place for addressing worker misclassification? Read more about contractor and employee classification in the New GAO Report on Employee Misclassification.
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September, 10 2009
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 . . .
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August, 31 2009
It’s easy to get bogged down in the details of 1099 reclassification risk. Sometimes, the minutiae of contractor classification fade into the background, and the essence boils down to a far simpler directive: don’t hate. To explain what I mean, for today’s installment of the 1099 Risk Blog I’d like to highlight the recent Baby Trend misclassification and wrongful termination case. A California superior court entered an $8.4 million jury verdict against Baby Trend Inc. and the owner, Denny Tsai, for misclassifying and wrongfully terminating Robert Gardner . . .
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August, 13 2009
Congressman Jim McDermott (D-Wash) introduced H.R.3408, The Taxpayer Responsibility, Accountability and Consistency Act of 2009 in Congress. Sound familiar? This is substantially the same piece of legislation as H.R.5804 of the same title from 2008. The bill would repeal Section 530 (Safe Harbor) of the Revenue Act of 1978. The bill has 6 co-sponsors, compared to H.R.5804 which had won the support of 37 co-sponsors before dying an untimely death . . .
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August, 11 2009
In a case that brings vivid new meaning to the “three areas of control,” the Boston Globe reported today that a judge has ruled in favor of about 70 exotic dancers who were misclassified as independent contractors by Chelsea establishment King Arthur’s Lounge. The class action case will now proceed to trial on damages, estimated to come to thousands of dollars per stripper. With such a misclassification finding, the club may now also be exposed to the full monty of independent contractor reclassification risks, including wage and hour law, immigration law, discrimination laws, payroll tax penalties, and more.
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July, 9 2009
Just one week after the Department of Homeland Security sent letters notifying over 650 companies of pending audits of employment records, Secretary Napolitano announced yesterday that E-Verify for Federal contractors will take effect September 8, 2009, despite delays and speculation about the survival of the rule. [See more E-Verify issues.] E-Verify is part of a larger immigration enforcement initiative intended to put more onus on hiring organizations to maintain a legal workforce. The 2007 No-Match Rule, which has never taken effect . . .
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June, 23 2009
Our zombie news item for today is the grotesque revival of a proposed California budget fix that includes a 3% tax withholding for independent contractors. For those of you who don’t know what I am talking about, read on: this might be fun; I’m going to make yet another bold prognostication (see my last one on E-Verify). Withholding taxes on independent contractors? If you are feeling some déjà vu, it’s not just you. This zombie of a proposal has been raised and killed so many times . . .
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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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