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September 16, 2008
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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!
Tag: enforcement
1099 Risk Blog
Michigan and Maryland Eye Misclassification
Michigan and Maryland are joining other states in bringing increased scrutiny at the local level toward the classification of workers as either contractors or employees. The employee misclassification debate is now heating up across the country, with most agencies now labeling misclassification as a pervasive form of tax evasion.
2008 is the year for businesses to come to terms with the fact that agencies at every level -- local, state, and federal -- are looking to recoup lost payroll tax revenue. They are awake, they are sharing information, and they are considering it well worth their effort to go after it.
contractor classification, employee or contractor, michigan, maryland, state, enforcement, risk
State Enforcement
House Bill Would Penalize Misclassification
The flurry of introduced legislation intended to address employee misclassification continues: A new bill introduced in the House by Democratic Representatives Woolsey and Andrews would penalize employers who improperly classify their employees as contractors to save on payroll taxes, benefits, and other costs.
The Employee Misclassification Prevention Act would amend the Fair Labor Standards Act to clarify language around employee -- contractor classification [i.e., whether individuals should be paid as a W2 or a 1099], increase reporting and communications between the . . .
legislation, IRS, DOL, classification, contractors, employees, information sharing, enforcement
Legislation
New Hampshire Added To List of States Cracking Down on Contractor Misclassification
New Hampshire can now be added to the list of states (including CA, NY, and MA), putting together special task force initiatives to crack down on improper contractor classification.
As reported in today's Nashua Telegraph:
"Labor Commissioner George Copadis said Wednesday his department has received enough complaints about the practice that it is has teamed up with four other state agencies, including the attorney general’s office and the Department of Revenue, to look in to how big the problem really is.
NH, New Hampshire, state, enforcement, 1099, classification, reclassification, misclassification, contractors, employees, worker's compensation
State Enforcement
MA Governor Cracks Down on Misclassification
One by one, the states are turning up the heat on independent contractor classification. On March 12, 2008, Mass. Governor Deval Patrick signed Executive Order 499 creating a joint task force to identify and crack down on illegal misclassification of workers as independent contractors.
"Through joint efforts, the Task Force is charged with combating the underground economy and employee misclassification, including efforts to: (a) foster compliance with the law by educating business owners and employees about applicable requirements; (b) conduct joint, targeted investigations and enforcement actions against violators; (c) protect the health, safety and benefit rights of workers; and (d) restore competitive equality for law-abiding businesses."
State Enforcement
