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Employer Liability Issues 1099s

Davis Wright Tremaine LLP

How SECURE 2.0 Options Impact Form W-2 and Form 1099-R Reporting

IRS reminds employers that implementing certain optional retirement plan provisions of SECURE 2.0 affect Form W‑2 and Form 1099‑R reporting starting in 2023 - The IRS recently issued Fact Sheet 2024‑18 to highlight how...more

Jackson Lewis P.C.

Guidance for Classification of Construction Workers Provided by New Jersey Supreme Court

Jackson Lewis P.C. on

In a case involving a drywall installation business, the New Jersey Supreme Court has provided helpful tips for employers to properly classify construction workers as independent contractors or employees and to accurately...more

Morgan Lewis

Don’t Pay Twice: Monitor Payment of Cancelled, Reissued Qualified Plan Distributions

Morgan Lewis on

Cancelled and reissued qualified plan distribution checks, particularly to decedents, should be monitored for payment in light of the Internal Revenue Service’s repeated refusal to repay withholding to payor plans. If a Form...more

Ward and Smith, P.A.

Getting Rid of the Misnomer: The Risks Behind the Term "1099 Employee"

Ward and Smith, P.A. on

While many employers use the term "1099 employee" as a means to distinguish independent contractors from the company's W-2 employees, no such term exists from a legal standpoint.  In fact, in addition to being inaccurate,...more

Morgan Lewis

Resolving Erroneous Payroll Tax and Information Return Reporting Penalties with the IRS

Morgan Lewis on

Some taxpayers are receiving automatically generated IRS notices of underpayments and penalties with respect to Form W-2 income tax and FICA withholdings, unemployment taxes, and backup withholding, as well as other year-end...more

Tucker Arensberg, P.C.

Have Independent Contractors on Your Jobsite?

Tucker Arensberg, P.C. on

If you operate a construction business in Pennsylvania, and hire independent contractors, who you pay via 1099s, you could face criminal charges, and be forced to pay fines and restitution if these workers are not properly...more

Schwabe, Williamson & Wyatt PC

Tax Implications of Payments Received under the Washington Paid Family Medical Leave Program

Since its effective date of January 1, 2020, the Washington Paid Family Medical Leave Program (“PFML”) has provided qualified employees paid time off if such employees miss work due to serious health conditions, needing to...more

FordHarrison

The Gig is Up – New Jersey Misclassification Laws Create Extreme Risk for Anyone Utilizing Independent Contractors

FordHarrison on

Soon after being elected, New Jersey’s Governor created a task force to end misclassification of independent contractors, and the state’s Department of Labor and Workforce Development (DOL) began increasing audits and its...more

Littler

Restructuring Operations in the Wake of California AB 5? Don’t Overlook the Tax Implications

Littler on

Businesses with operations in California have begun to identify options and implement strategies for compliance with Assembly Bill (AB) 5, which imposes the ABC test for identifying whether a worker is an independent...more

Littler

Massachusetts Extends Critical Compliance Deadlines Under the Paid Family Medical Leave Law

Littler on

On May 1, 2019, the Massachusetts Department of Family and Medical Leave (Department) offered Massachusetts businesses a temporary reprieve by extending two key deadlines critical to the implementation of the Massachusetts...more

Partridge Snow & Hahn LLP

Update: Massachusetts Paid Family And Medical Leave - New Notice Requirement Deadline Of May 31

The first phase of Massachusetts’ new paid family and medical leave law ("PFML") requires covered employers to provide certain notices to employees and 1099-MISC contractors as of July 1. Specifically, a form of notice is...more

Foley & Lardner LLP

How Do I Report Non-Qualified Plan or Severance Payments to a Former Employee? Hint: You Should Probably Use a W-2, Not a 1099!

Foley & Lardner LLP on

Employers commonly make payments to former employees for a number of reasons. Two of the more routine payments are those from a non-qualified deferred compensation plan (such as payments from a supplemental executive...more

Fisher Phillips

You Win Some, You Lose Some: A Review Of Some Recent Misclassification Decisions

Fisher Phillips on

At the forefront of mind of every gig economy company is the troublesome question of whether its workers are properly classified as independent contractors. Just search our blog for cases involving “misclassification” and...more

Burr & Forman

Federal Employment Taxes: Employee-Independent Contractor Issues (Part 5)

Burr & Forman on

Section 530 Relief - Employers that have workers which the employer classifies as “independent contractors” (Form 1099) risk having these workers reclassified by the IRS as employees. This is a major audit area for the...more

Burr & Forman

Federal Employment Taxes: Employee-Independent Contractor Issues (Part 3)

Burr & Forman on

IRS Form SS-8 Determinations of Employee Status - Employers that have workers which the employer classifies as “independent contractors” (Form 1099) risk having these workers reclassified by the IRS as “employees.” This...more

Burr & Forman

Employee or independent contractor? Right to control is key

Burr & Forman on

A continuing point of contention in employment law revolves around who is an employee versus who is an independent contractor. The issue seems to come up often in wage and hour cases and workers’ compensation or unemployment...more

Troutman Pepper

Spoiler Alert: Rulings Expected on Uber and Lyft Independent Contractor Settlements

Troutman Pepper on

Judges in California will likely soon issue rulings affecting two ride-sharing companies, Uber and Lyft. Those connected with the Lyft case will be pleased because it is expected that a federal district court judge in San...more

Troutman Pepper

December 2016 Independent Contractor Misclassification and Compliance News Update

Troutman Pepper on

In our update for last month’s developments in this area of the law, we report on five significant court cases involving companies in the transportation industry that use ICs as an integral part of their business model. Each...more

Gray Reed

Landmen as Independent Contractors: Is the government’s voluntary settlement program too good to pass up?

Gray Reed on

The days of the lone landman driving around the back roads taking leases and visiting courthouses are becoming a thing of the past. Though there are still a few independent landmen who fit this mold, clients have demanded...more

Troutman Pepper

“Misclassification Mythbusters”: The Labor Department’s Latest Effort to Crack Down on Independent Contractor Misclassification

Troutman Pepper on

The U.S. Department of Labor has just released a dozen Q&A’s on the issue of IC misclassification in an online publication it calls “Misclassification Mythbusters.” The 12 IC misclassification “myths” that it seeks to debunk...more

Troutman Pepper

Uber’s $100 Million Settlement Rejected by Judge; Independent Contractor Misclassification Lawsuit to Proceed

Troutman Pepper on

Earlier yesterday, Uber was dealt yet another setback in its efforts to settle the IC misclassification lawsuits brought against it by Uber drivers in California and Massachusetts. As readers of this legal blog will recall...more

Troutman Pepper

Transgender Video Game Industry Employee Converted to Independent Contractor Status Raises Misclassification and Discrimination...

Troutman Pepper on

A prominent Washington State video game company, Valve Corporation, creator of Half-Life, Counter-Strike, and Left 4 Dead, has been sued by a former employee it converted into an independent contractor as an accommodation to...more

Spilman Thomas & Battle, PLLC

Upping the Ante: Fines Increase for Failure to Comply with Affordable Care Act Reporting Requirements

The deadline for employers to comply with the Affordable Care Act (“ACA”) reporting requirements is finally here, with reporting first due in 2016. In keeping with the ACA’s historical pattern of ever-changing regulations and...more

McDermott Will & Emery

Affordable Care Act Reporting Penalties Significantly Increased

McDermott Will & Emery on

On June 29, 2015, President Barack Obama signed the Trade Preferences Extension Act (the Act) into law. In addition to containing several revenue offsets, the Act significantly increased penalties for incorrect information...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

The Increased Cost of Tax (Non) Compliance and the New Trade Preferences Extension Act

On June 29, 2015, President Obama signed into law the Trade Preferences Extension Act of 2015. Neatly tucked away in the “Offsets” provision of the Act are sizeable increases in the dollar amounts of the penalties under...more

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