Tag Archives: independent contractor liability

New Misclassification Bill Introduced in Congress: The “Independent Contractor Tax Fairness and Simplification Act of 2012” Seeks to Eliminate “Safe Harbor” for Businesses

On December 12. 2012, Rep. Erik Paulsen (R. Minn.) introduced a bill that bears many similarities to a bill introduced earlier this year by 33 Democrats.  The Independent Contractor Tax Fairness and Simplification Act (H.R. 6653) would, like the Fair … Continue reading

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Cable Company’s Installers Were Misclassified as Independent Contractors: Another Business that Failed to Properly Structure and Document Its Independent Contractor Relationship

The U.S. Department of Labor recently scored a meaningful victory in yet another court case where a company failed to structure, document, and execute properly an independent contractor relationship with workers who were paid on a 1099 basis.  In Hilda … Continue reading

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U.S. Labor Department and IRS Sign Pacts to Coordinate Their Crack Downs on Independent Contractor Misclassification

On September 19, 2011, Secretary of Labor Hilda Solis and IRS Commissioner Doug Shulman signed a Memorandum of Understanding to coordinate both agencies’ law enforcement efforts aimed at businesses that misclassify employees as independent contractors.  At a ceremony held at … Continue reading

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IRS’s New Voluntary Classification Program Adds Another Means to Minimize Independent Contractor Misclassification Liability

The IRS yesterday announced a new program to permit taxpayers to voluntarily reclassify independent contractors as employees for federal employment tax purposes. The program, called the “Voluntary Classification Settlement Program” (VCSP), would allow businesses to voluntarily reclassify workers who currently receive 1099s from … Continue reading

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Senate Re-Loads on Independent Contractor Misclassification: New Bill Characterizes Misclassification as “Payroll Fraud”

On Friday, April 8, 2011, Senators Sherrod Brown (D-Ohio), Tom Harkin (D-Iowa), and Richard Blumenthal (D-Conn.) introduced the Payroll Fraud Prevention Act (S. 770), a trimmed-down version of the Employee Misclassification Prevention Act bill that was introduced into both houses of … Continue reading

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