It is that time of year when the words IRS start to become a concern for most of us. Whether it is your own personal tax return or tax issues for the corporation at which you work, the iron fist of the Internal Revenue Service is ready to "make you pay" one way or the other.
A big topic of discussion around this time of year is the classification of independent contractors.
According to the folks at SI Review over 25% of their recent survey respondents had no idea at all if all their workers were properly classified. Another 62% were confident that at least some of their workers were probably misclassified. Only 13% were confident that they nailed it and had everyone in compliance with the law.
So why worry? Well, a whopping 40% of buyers reported that their independent contractor pools have been audited by an outside agency....usually you guessed, the IRS. And, these audits took place within the past six months. This translates in to high risk!
Consider this as well. If the IRS doesn't get you, the individual just might. How you say? Most often it starts when the "independent" goes to file for unemployment benefits or a worker's compensation claim and is denied. Or a claim is made for overtime pay or other benefits paid to your full time staff. Can anyone say Microsoft?
What do we suggest you do if you think this may be an issue? The first thing to do is visit the IRS.gov website and take a look at the qualifications needed for an individual to be properly classified as an independent contractor.
If you think you have a problem, contact Ryan Staffing and we can help you establish the individual as a payroll employee of Ryan Staffing at a rate that is very affordable. This provides continuity of the employee's services and compliance with the law so that you can rest easy. And one less thing to worry about can't ever be bad right?
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