Independent Contractors Internal Revenue Service

Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent... more +
Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent contractor is not always an easy determination. However, due to differences in tax and liability treatment, misclassifying an employee as an independent contractor can have serious consequences. Autonomy is the defining feature of independent contractor arrangements. Independent contractors control the manner and method of how work is performed while payers control the desired result. Control over schedule and number of hours worked, ownership of equipment or tools, permanency of relationship, and acceptance of jobs from multiple entities are all possible factors in determining whether a worker is an employee or independent contractor.   less -
News & Analysis as of

Employees vs. Independent Contractors: The Consequences of Misclassification

The distinction between independent contractors and employees carries more burdens, consequences, and decisions than ever before. In addition to the tax consequences, there are health care compliance consequences, workers’...more

The Affordable Care Act and Staffing: One Size Does Not Fit All

Since its enactment in 2010, the Affordable Care Act (ACA) has generated debate and questions about the law's impact on third-party staffing arrangements. With the effective date of the ACA's "pay-or-play" employer mandate...more

Latest Scoop From New Jersey on Independent Contractor Misclassification May Cause Employers Brain Freeze

An ice cream parlor in Dania Beach, Florida, features The Original Kitchen Sink Sundae, which contains up to 30 scoops, plus chocolate syrup, marshmallows, nuts, whipped cream, and a variety of berries. Customers can choose...more

15 For ’15: Employment And Labor Resolutions For The New Year

While the year is still young, here are 15 New Year’s resolutions that employers may want to make: 1. Make sure your “independent contractors” are really independent contractors. ”Independent contractors” are under...more

Is Your Company Properly Classifying its Workforce?

As the end of the year quickly approaches, it may be time to sit down and evaluate the classification of your company’s workers. If you determine a certain class or classes of workers may be misclassified as independent...more

Independent No More: The Crackdown on the Use of Independent Contractors

For years, many employers have tried to reduce their tax burdens by treating persons who perform services for them as individual contractors as opposed to employees and thereby reducing the payroll withholding taxes they must...more

NLRB Adopts New Test for Independent Contractor Misclassification, Applies it to Find FedEx Drivers are Employees Who Can Unionize

The NLRB has tossed a new vegetable into the enormous salad of independent contractor misclassification tests. As companies might expect, the new vegetable smells rotten. Companies who wish to analyze whether their...more

Legal Alert: Final Rules on Compensation Deduction Limit for Health Insurers

The Internal Revenue Service (IRS) and the Department of Treasury (Treasury) have issued final regulations under section 162(m)(6) of the Internal Revenue Code of 1986, as amended (Code), which limit the deduction certain...more

Misclassification of Employees As Independent Contractors In the News

Media outlets throughout the country have recently reported that it appears there was little to no oversight to ensure contractors, which were working on projects receiving federal stimulus money, were not misclassifying...more

State Law Can Override Control Test for Employment

Past articles in this blog have discussed the control test for establishing an employment relationship as opposed to independent contractor status. Although government agencies such as the Department of Labor or IRS describe...more

Opening a Law Practice? Pay Attention to Tax Issues

You’ve decided to open your own law office and are ready for your clients’ cases, but are you also ready to handle the tax issues that go hand-in-hand with running your own business?...more

Store to Pay Up to $6.5 Million for Misclassifying Workers

A national home-improvement store recently agreed to pay thousands of California workers as much as $6.5 million for improperly labeling them independent contractors (IC) instead of employees....more

The Supremes Sing Out About Control: It is the Primary Test for Deciding Whether a Worker is an Employee or an Independent...

In December 2008, newspaper carrier Maria Ayala sued Antelope Valley Newspapers on behalf of herself and a putative class of other newspaper carriers. The crux of her allegations in the complaint is that Antelope Valley...more

Senate Finance Committee Considering Measure to Largely Repeal IRC Section 530 Safe Harbor for Most Businesses Using Independent...

Sen. Sherrod Brown (D.Ohio) reintroduced the “Fair Playing Field Act,” S.1706, in November 2013. The bill, which first appeared in 2010 under then-Senator John Kerry’s sponsorship, purports to close an ostensible loophole in...more

Two Colorado Supreme Court Decisions Address Independent Contractor Relationships

Companies using independent contractors should review their practices in light of two recent decisions from the Colorado Supreme Court: I.C.A.O. v. Softrock Geological Services, Inc. and Western Logistics, Inc. v. I.C.A.O....more

Are You Too Cozy With Your Independent Contractors?

January 1, 2015 is fast approaching, and with it, the first year the employer mandate applies to employers with 100 or more full-time employees (50 in 2016) – the “Play or Pay” rules. In preparation for this new law,...more

The Independent Contractor: To Be or Not to Be

Just because an employer calls someone an independent contractor does not make him or her so. Because revenue-starved states have been increasingly focusing on independent contractor classification issues, challenges to the...more

Employee or Independent Contractor? – If You Have the Right to Control Them, They’re Yours

When we analyze the question whether a worker is an employee or an independent contractor, we usually approach the issue from the point of view of the Connecticut Department of Labor and apply the “ABC” test, or from the...more

The 2014 Forecast for Employers

The year 2013 was anything but boring for labor and employment lawyers: delay of the Affordable Care Act employer mandate, changes to the National Labor Relations Board and questions about the validity of hundreds of past...more

Employee Or Independent Contractor – The War Has Been Waged

The battle between employers and government agencies over the classification of workers as employees or independent contractors (an “IC”) has been waged for years. Last year, the Internal Revenue Service and the U.S....more

Federal Agencies Go After “Misclassified” Landmen

Are your landmen independent contractors? Are they employees? What do they look like to the government?...more

Another Reason Not to Misclassify Employees

As reported in prior Snell & Wilmer publications (See September 2011 Workplace Word, October 2011 Workplace Word and January 9, 2013 Legal Alert), there are numerous reasons why employers need to ensure that they do not treat...more

June 30 Deadline to Apply for Temporary Employment Tax Settlement Program

Is your company considering reclassifying certain workers, but hesitant because it is worried about triggering a federal employment tax audit or not having consistently filed Form 1099s for those workers in the past? If you...more

IRS Worker Classification Audits—Risks And Relief Options

The battle between the Internal Revenue Service (IRS) and taxpayers continues over independent contractor treatment. ...more

IRS Temporarily Liberalizes Requirements For Employment Tax Partial Amnesty Program But June 30th Deadline Looms

Many companies struggle with how to classify their workers for tax purposes. Are they employees? Or, are they independent contractors?...more

39 Results
|
View per page
Page: of 2