Misclassification

consultant tips

How Worker Misclassification Impacts Independent Contractors

By MBO Partners

As the 64.6 million-strong independent workforce continues to grow, so does the issue of employee misclassification. The IRS estimates that millions of workers have been misclassified, and according to state-level studies, 10-30% of employers misclassify their employees as independent contractors. While some misclassification is unintentional due to lack of understanding about laws regarding worker classification, sometimes it is done…

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compliance

Contractor Misclassification: Schwann vs FedEx

By MBO Partners

The methods that federal and state agencies use to determine whether a worker is an independent contractor vs an employee are quite complex. In the 2013 case of Schwann et. al. v. FedEx, under Massachusetts law, FedEx had virtually no chance of proving that the drivers were not employees. How does the federal government determine…

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Compliance Checklist for Classifying FTEs vs Contractors

By MBO Partners

Engaging an independent contractor is different than hiring an employee because different laws apply to each category of worker. If your organization engages independent contractors, it is important to consider how your company will comply with relevant laws, policies, and regulations. For example, while companies have the ability to schedule employees and control how they…

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4 Ways to Reduce Worker Misclassification Risk

By MBO Partners

Worker misclassification is a complex topic. It does not always have a straightforward solution. Often, misclassification can be unintentional because businesses simply do not have a full understanding of the laws regarding how to classify their workers. However, it can also be done intentionally to reduce labor costs or avoid payroll taxes. Regardless of why…

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Independent business owner planning for growth

Why Worker Classification is Important to Independent Professionals

By MBO Partners

The cost of employee misclassification on independent contractors and what organizations can do to minimize risk.

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3 Ways Employee Misclassification Puts Your Business at Risk

By MBO Partners

Many organizations today incorporate independent professional talent into their fulltime workforce, making it increasingly important to put measures in place to help correctly classify talent as either traditional employees—recipients of a W-2 Wage and Tax Statement—or independent contractors—recipients of form 1099-MISC, Miscellaneous Income. Failure to correctly classify a worker can have long-term, expensive consequences. If…

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misclassification and compliance news

Top Independent Contractor Compliance Stories from 2021

By Nathan Gibson

As the independent workforce continues to grow, so do the issues of worker compliance and misclassification. It is important for enterprises to remain informed about the latest laws, regulations, and developments surrounding these topics. 2021 was a fascinating year for independent contractor compliance. Here’s a look at some top stories. 1. Trump DOL announced new…

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DOL Updates Worker Classification Guidelines: What this New Rule Means for Enterprise Organizations and the Independent Professionals they Engage

By Nathan Gibson

On January 7, 2021, the United States Department of Labor (DOL) issued its final rule on the status of independent contractors. The new rule goes into effect on March 8, 2021. The new rule reaffirms the “economic reality” test to determine whether an individual is an independent contractor if s/he is in business for him/herself…

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misclassification and compliance news

Top Independent Contractor Compliance Stories from 2020

By Nathan Gibson

As the independent workforce continues to grow, so do the issues of worker compliance and misclassification. It is important for enterprises to remain informed about the latest laws, regulations, and developments surrounding these topics. 2020 was a fascinating year for independent contractor compliance. Here’s a look at five of the top stories. 1. The Evolution…

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misclassification and compliance news

Independent Contractor Misclassification and Compliance News: November, 2020

By MBO Partners

As the independent workforce continues to grow, so do the issues of worker compliance and misclassification. It is important for enterprises to remain informed about the latest laws, regulations, and developments surrounding these topics. Each month, we’ll bring you the latest news stories from around the web. 1. Proposition 22: California Votes to Allow Uber…

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