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1099 Risk Blog

Accounting Blog Directory

March, 18 2009
Posted by MBO Partners | Comments: (4)

Healthcare workers that were classified as independent contractors by the Delta-T Group filed a lawsuit on February 17th claiming they were misclassified, according to a news item in MSNBC today. If the court agrees with their position -- that they should have been classified as employees -- then they have been unjustly denied overtime compensation, unemployment, benefits, payroll taxes, and worker's comp. The company could be forced to

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March, 1 2009
Posted by MBO Partners | Comments: (0)

Here's the next independent contractor classification tip in our series. Tip #5: 

Use the right engagement method.

After you've accurately assessed the status of your independent contractors, you must select the correct engagement method for your compliant and non-compliant contractors. To accurately assess but then incorrectly engage contractors defeats the purpose of doing contractor compliance in the first place, but we're surprised how often we encounter this practice.  Engage non-compliant contractors . . .  

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February, 9 2009
Posted by MBO Partners | Comments: (0)

 

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.

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February, 5 2009
Posted by Allan Schweyer, Executive Director, HCI | Comments: (0)

 

Today’s employment marketplace consists of a diverse composition of labor and talent from a wide variety of sources. Among them is a group that is collectively known as contracted talent or the contingent workforce. This group includes contractors, consultants, freelancers, temporary help, interim executives and others who are not part of an organization’s full-time or part-time workforce.

 

Contingent work has continually evolved since its inception. The 1950s temp who filled in for emergencies and maternity leave has given way to today’s skilled professional who may lead projects, serve in a critical technical capacity on a team, or even act as an interim CEO. Indeed . . .

 

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February, 5 2009
Posted by MBO Partners | Comments: (0)

 

New research published jointly by HCI and MBO Partners, The State of Contract Talent and the Role of HR, points out that contract talent, including independent contractors, is the fastest growing segment of the workforce, and a major strategic component of enterprise talent management. Despite this, however, HR is often not involved in the sourcing and engagement of contract talent, which is generally handled by procurement. The research report concludes that human resources and procurement are going to need to find new ways of collaborating in order to better handle the strategic management of the contract workforce, including consultants, freelancers, retirees, small services vendors, and independent contractors.

 

Check out this executive briefing slideshow that summarizes the research:

http://thetalenteconomy.com/ebriefings/stateofcontractmbo012109/

 

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February, 2 2009
Posted by MBO Partners | Comments: (0)

Here's the next independent contractor classification tip in our series. Tip #4:

 

Focus on real protections, and forget term limits. 

 

Many traditional practices, such as setting term or tenure limits, are virtually meaningless in the face of an IRS audit. In the real world, you can have co-employment risk if a misclassified worker is on the job for just six minutes! Case law precedent clearly demonstrates that practices like setting term limits or having workers sign independent contractor agreements are the kind of surface formalities that carry little weight in an audit or lawsuit, where substance trumps form. Make sure your program is founded on understanding the real risk factors, and presents real IC risk mitigation and compliance solutions. For example, if your compliance program relies on term limits or flimsy contractor agreements to imply that otherwise non-compliant contractors are “compliant,” you have risk.

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January, 30 2009
Posted by MBO Partners | Comments: (0)

How big is your contract workforce? What proportion of your organization's workforce could be considered contingent or is contract-based? Please take a moment to visit our poll on LinkedIn: http://polls.linkedin.com/p/18415/hzyaj

 

In your answer, please include temps, independent contractors, seasonal hires, independent consultants, and single-person vendors. Essentially, consider anyone who is performing work in your organization that is not a "traditional" employee. Thanks for your help!

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January, 29 2009
Posted by | Comments: (0)

The effective date of the E-Verify requirement for federal contractors has been delayed yet again to May 21. While some business groups are hoping the Bush-era rule will be reviewed and rejected by the Obama administration, other signs promise that, delay or no, E-Verify is here to stay. The House version of the economic stimulus package requires E-Verify for recipients of federal assistance. E-Verify is a free online system via DHS that employers can use to electronically check the immigration status of workers. For federal contractors that sub-contract work or hire independent contractors, 1099s, and single person companies, E-Verify raises new compliance issues that will need to be addressed.   

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January, 16 2009
Posted by | Comments: (0)

 

Here's the MBO Partners Independent Contractor Classification Tip #3:

 

Don’t rely on software alone. 

 

Whether you conduct assessments in-house or through a third-party provider, know that the control factors are highly nuanced. Any compliance software must be considered a preliminary step, and compliance determinations should be reviewed by a trained and experienced compliance officer.

 

<a href="http://technorati.com/claim/t9374air3t" rel="me">Technorati Profile</a>

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January, 14 2009
Posted by | Comments: (0)

 

According to the Des Moines Register and other sources, Governor Culver is endorsing a recent report by Iowa's Task Force on independent contractor misclassification, and taking action on the matter. The state will be hiring 9 full time employees and spending $771,000 a year to crack down on the willful practice of misclassifying employees as independent contractors. Iowa joins many other states in addressing the issue. 

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Recent News

MBO 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 Research

Contingent 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.

Download the PDF

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Download White Paper

E-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!

Download the PDF

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