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No Comments » Written on September 26th, 2010 by
Categories: BenefitsForConsultants

Compliance issues at the client site

I see it more frequently lately.  And in 2011 and 2012, IRS will be cracking down harder!  Companies need contractors but they must maintain their 1099 or independent contractor’s compliance with the government.  Companies are worried about their exposure to IRS 1099 reclassification, co-employment risks, future penalties and taxes, and even legal action!  Companies desire to adhere to the independent contractor laws because the risks are large if their contingent workforce fails to meet compliance and regulatory requirements.

So, Independent Consultants…be proactive to defer their worries about you.  Work within a payroll status that classifies yourself correctly (Are you legitimately operating a business of your own?  Have multiple clients?  Hold the requisite business insurances?  No employer-employee relationship present (such as no project manager over you, no control over how the work is performed, using no equipment that belongs to the business, and so forth)?  If you cannot easily answer ‘yes’ to these questions, then choose a service provider that can put you in a payroll status that meets the legal requirements.  It may let you and your client sleep easier!

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