Employees or Independent Contractors: Who Cares?

Both the U.S. Department of Labor and the Internal Revenue Service have decided to make the issue of misclassification of an employee as an independent contractor a high priority. Beyond the random audits and potentially significant financial penalties that can come from the intensified efforts of these federal agencies, the heightened visibility of the misclassification on the federal level has also alerted many states and their individual agencies to the issue. Candidly, all levels of government are looking to this misclassification issue as a potential source of newly found revenue for them. Of course, that which is a money maker for the government is necessarily a money taker from an employer’s perspective. In this presentation, we will take a closer look at the misclassification issue, the potential negative consequences of misclassification, and some proactive ways to manage the risks associated with the issue. The topics will include:

• Fed Tax 101: IRS’s early 20-factor test, the Revenue Act of 1978’s “safe harbor,” and the IRS’s latest Voluntary Compliance Program
• New sets of eyes: IRS’s coordinated efforts with state tax and labor agencies
• Federal Concerns for the Employer, including Title VII (and related acts), the FLSA, the Affordable Care Act, and Benefit Plans
• State Concerns for the Employer, including Workers’ Compensation, Unemployment Insurance, State Anti-Discrimination Laws, and more...

Don’t miss this chance to learn about these issues, and how to manage them—from lawyers experienced in the areas of both tax and employment law.