You think you have heard all that was ever said about misclassification threats and how to stay compliant. Then, there is one more blog post, discussion or debate which brings the topic up again, creating more doubt and uncertainty in your mind. Or, worse still, the IRS launches a fresh new initiative which promises (read, threatens) to make sure that no organization can get away with the improper use of independent contractors. Either of the above will surely have one effect. Rob everyone who uses independent contractors of a peaceful night’s sleep.
Eight Facts about Avoiding Classification Risk:
Unless and until the IRS and other regulators consciously choose to develop a single, clear and consistent set of criteria for determining a worker’s classification, misclassification will continue. We encourage companies to take protective steps. Educate your hiring managers and HR personnel on the obvious pitfalls. Establish centralized visibility into the use of independent contractors. Require standard Statements of Work that clearly define the working relationships between the two firms. Finally, seek assistance from reputable advisors and consultants whose focus is on proper classification rather than resorting to ‘after the fact’ damage control.
Mail (will not be published) (required)
four − = 3
Thanks for Subscribing to DCR Blog.