Independent Contractor or Employee? How To Avoid Misclassifying Your Workers
🎤 Mark Schwartz | 📅 September 27, 2023 | 🕒 11 AM Eastern Time US
Description:
Avoid Costly Mistakes: Proper Worker Classification for Personnel Management
Misclassifying workers can be a detrimental error in personnel management, resulting in significant financial consequences. As the cost of employing workers continues to rise, facing an audit for workers classified as 1099 can lead to expensive payroll tax assessments, often leading to bankruptcy. While the IRS has maintained consistent guidelines for evaluating working relationships, many states are now requiring more workers to be classified as employees rather than independent contractors.
Understanding Independent Contractor Status: Key Factors
The term "independent contractor" holds the essence of what establishes a worker's classification. To demonstrate that a worker is not an employee, it is essential to establish independence within the working relationship. This entails examining various factors such as pay, control over tools and equipment, work hours, manner and means of performing services, and more. Additionally, the contractual agreement between the worker and the business plays a crucial role. Assessing the risk of loss to the worker, determining responsibility for expenses, and identifying signs of the worker operating their own business are important considerations. The closer an independent contractor agreement resembles an employment agreement, the higher the likelihood of misclassification.Join Mark in an Informative Webinar for Hiring Managers and Payroll ProfessionalsDon't miss this important webinar led by Mark, catering to hiring managers, payroll personnel, and accounts payable professionals. By equipping a select group of individuals in your company with comprehensive training, you can confidently make accurate worker classification decisions. As an ex-auditor, Mark emphasizes the significance of properly conducting business with independent contractors, just as it is crucial for your employees. Invest the time and effort into ensuring compliance and gain peace of mind.
Why You Should Attend:
- Know and apply the factors that determine an employment vs independent contractor relationship
- Know how the states can and do differ from the IRS and other federal guidelines
- Correctly categorize all workers as either an independent contractor or employee
- Effectively argue your position if questioned about a worker’s status
- Know about and avoid the penalties for misclassification
- Document the reasons for your decision
- Train your hiring, payroll and HR workforce on this matter
Who Should Attend:
- Payroll Managers
- Human Resource Managers
- Hiring Personnel
- Internal and External Audit Personnel
- A/P Managers and Staff
- Personnel Executives
