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1099 Risk Blog
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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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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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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