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Wisdom for 1099 Contract Consultants or companies who employ them.
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Independent Contractor Compliance Blog » Archive » Educating ...

Independent Contractor Compliance Blog » Archive » Educating ... | 1099 IT contractors | Scoop.it
Do you occasionally experience pushback from consultants who insist on being treated as an independent contractor (IC) when they don't qualify? Maybe you should inform them of the risks they are taking as a misclassified ...
Jill Freeman at Rothwell International's insight:

This is all a very true potential. There is one additional option where the consultant can be treated as a W2, but also claim all business-related expenses against his/her taxable income, by becoming a member of Rothwell International (www.BenefitsForConsultants.com).  Rothwell's Employer-of-Record service is a specific service to cosultants who would like to have the tax advantages of being an independent consultant, but have certain contractual mandates to being a W2.

 

Using Rothwell's Employer-of-Record service ensures that the situation is a Win-Win for all parties.

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Independent Contractor Compliance Blog » Archive » How to ...

Independent Contractor Compliance Blog » Archive » How to ... | 1099 IT contractors | Scoop.it
There is no magic formula to decide if an independent contractor (IC) is properly classified. However, there are ... Has the consultant's contract been extended or renewed, either formally or informally, several times?
Jill Freeman at Rothwell International's insight:

Answering yes to these questions is a big indicator that this consultant needs to be on a W2 (somewhere, somehow).  You can hire him/her as a temporary employee, you can mandate in their contract that they have an employer who is handling their taxes appropriately (either the consultant's own corporation or a 3rd party).  Most consultants want to continue claiming their expenses so they would prefer being their own corporation or using a Employer-of-Record that allows the claiming of expenses such as Rothwell International.

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Private Contractors Owe $460,000 in Back Wages

Private Contractors Owe $460,000 in Back Wages | 1099 IT contractors | Scoop.it
The perennial last-minute negotiations over hosting the America's Cup regatta in San Francisco have led to contractors for race organizers owing almost $460,000 in back wages and costs for dozens of workers, according to interviews and city...
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Trucking Company Will Fight Driver Misclassification Ruling

Trucking Company Will Fight Driver Misclassification Ruling | 1099 IT contractors | Scoop.it

A manager for a California trucking company Seacon Logix said the company intends to fight a labor commissioner’s order to pay four Long Beach port truck drivers more than $100,000 in withheld wages, interest and penalties.

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Sherry Griffin's curator insight, March 18, 2013 3:17 PM

Great example of why you have to be extremely diligent.  State agencies are being very agressive and California is the leader of the pack...

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Research Claims IRS worker classification audits pose unfair burden on small businesses

Research Claims IRS worker classification audits pose unfair burden on small businesses | 1099 IT contractors | Scoop.it
Congress should halt the Internal Revenue Service's increased audits of small employers suspected of misclassifying workers as independent contractors until the IRS clarifies its rules
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Sherry Griffin's curator insight, March 18, 2013 3:01 PM

I would love to see some clarification across the board, meaning a definition that applies to all agencies both on the federal level and at the state level.  Worker Classification is going to be one of the biggest headaches that small businesses will have to deal with for the forseeable future (yes, bigger headache than the health care mandate).

Tommy Brown's curator insight, March 20, 2013 2:13 AM

I currently have a client with this issue. IRS is assessing him over $500K in the reclassification of his workers.

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Your Own Business, Part II: Orders of Beasts in The Work World-W2 ...

Your Own Business, Part II: Orders of Beasts in The Work World-W2 ... | 1099 IT contractors | Scoop.it
A job seeker may harken to some advice to take the path of Independent contracting-consulting or the “1099 path”. This means whoever temporarily employs your consult is not responsible for paying you anything else other ...
Jill Freeman at Rothwell International's insight:

I was thinking that this author was going to say "Independent contracting/consulting is an acquired taste, but some job seekerswho discover it..." may begin to feel it tastes a little too spicy for their liking".  I.e, some workers do not enjoy dealing with the taxes, the insurance brokers, the invoicing, and so forth.  For these type of 'quasi-independent workers,' I would like to introduce you to services such as Rothwell International offers (an Employer-of-Record that caters to Consultants who would ilke to do the best they can saving on their tax burdens). 

 

So we can go from spicy OR spiky and realize that this pleasurable, consulting lifestyle "is a Long Island Ice Tea compared to being an employee and staying in one company for days or years which begins to look like a glass of plain tap water in comparison".

 

Go to www.BenefitsForConsultants.com to get help with being an independent contractor.

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Firm Ordered to Pay $1.3m to Workers in Contractor Misclassification

Firm Ordered to Pay $1.3m to Workers in Contractor Misclassification | 1099 IT contractors | Scoop.it

A company was ordered to pay $1.3 million in back wages to 14,568 current and former employees after it misclassified the workers as independent contractors, according to the U.S. Department of Labor. The company, kgb USA Inc., is a provider of directory assistance and enhanced information services, and it is based in Bethlehem, Penn.

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How to Avoid Misclassifying Workers

How to Avoid Misclassifying Workers | 1099 IT contractors | Scoop.it
Follow these guidelines to help determine whether a hire is an employee or an independent contractor.
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Jill Freeman at Rothwell International's comment, March 20, 2013 10:37 PM
Might it behoove us to pay all workers as W2 'temporary' workers?
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Payroll Audits Put Employers on Edge

Payroll Audits Put   Employers on Edge | 1099 IT contractors | Scoop.it
The government is cracking down on small businesses and other employers who misclassify workers as independent contractors to avoid paying payroll taxes and other employment-related expenses.
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Jill Freeman at Rothwell International's comment, March 20, 2013 10:39 PM
All employers who employ workers on a 1099 basis could require the worker to prove they are paying taxes on their income.