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1099 Risk Blog
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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June, 1 2009
While we're shy of reporting on rumors, the word from Washington Technology today is that a representative from trade association TechAmerica has emailed their membership with the news that the deadline for Federal Contractors to comply with E-Verify will be delayed, yet again, this time to September 8. The ruling was most recently postponed to June 30th to allow the Obama administration . . .
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May, 7 2009
You’ve already heard that the White House has delayed the deadline for Federal contractors’ compliance with the E-Verify rule – again – until June 30th. There are those who would argue clearly and compellingly that E-Verify isn’t going to make it, that the forces against it are strong. I was discussing the issue just the other day with an attorney, and the controversial rule makes for a challenging debate topic because of how the lines are drawn. Both the left and the right are split down the middle . . .
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April, 23 2009
Clamp down on “maverick” spend. As compliance programs are only effective if they are used, executive buy-in and a strong communications program are critical. Check that contractors are not being engaged as “maverick” spend by managers unwilling to participate in the compliance program. Often, if a contractor fails compliance...
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April, 10 2009
As our senior management representative handling new customer implementations, I’m privy to some of the best facial expressions business executives have to offer. A few weeks ago, I visited a new customer to begin implementing our Independent Contractor Compliance services, which included...
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April, 10 2009
Ready for independent contractor classification tip #7? Here it is: "Maintain electronic records on each independent contractor for instant audit defense". You or your 1099 compliance vendor should maintain an electronic compliance file on every independent contractor you engage. Check to find out...
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April, 3 2009
Last fall, I learned of a curious event in the world of Independent Contractor risk: a government agency was being audited by the IRS for its use of Independent Contractors. The audit found the agency to be liable, and the IRS levied penalties. Although the fines did not seem to be of the level I have seen with private industries, it did come with the stipulation that the agency clean up its act in the next six months or it would...
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March, 27 2009
The IRS was alerted to a growing epidemic of worker reclassification by a Treasury Department report issued last month. In our last blog post on misclassification, we discussed why employee reclassification was on the rise in America. In the second part of this short series, we will look at...
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March, 22 2009
Here's our next independent contractor classification tip #6:
"Re-assess compliance with every new assignment or, at a minimum, annually."
The only way to ensure compliance is maintained is to re-assess, re-assess, and re-assess. A simple change in any of the three control factors, such as management oversight when changing to a new project, can disqualify a previously compliant contractor.
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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.
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