As a risk manager my concern is over day to day compliance issues that seem to evade the business owner because it is not splashed across the television on a nightly basis. One area of concern is Independent contractor vs. Employee.
The DOL and IRS have been charged with the task of finding business owners who are currently misinterpreting this very issue. Paying someone with a 1099, allowing someone to work from home, and working independently does not an independent contractor make. The DOL and IRS have guidelines that clearly explain what the government’s idea of an independent contractor is.
There are three areas that are addressed by the government that employers must address in determination of contractor versus employee status: 1) Behavioral, 2) Financial Control, and 3) Relationship. There is not a simple check list it is all about understanding all three areas and how the DOL and IRS interpret the three.
The relationship of the business to the worker in regards to the type of work, training, method of payment, length of relationship, control of the work, supplies and tools of the work, the significance of the work to the business are all factors that must be considered as well as others.
The significant financial impact of misinterpreting this information and continuing to pay workers as an independent contractor when they actually are seen as employees by the government can be devastating to a small business owner.
Welcome Debbie Wright- CCM, RWCS, RN to our team of professionals here at “Simply” Sue Speaks! Debbie is a “People Strategist” and Managing Partner of Risk Management at Breakthrough Access Solutions. As a sought after Speaker and Workshop Presenter Debbie is a nationally known expert in the areas of Government Compliance, the Affordable Care Act, Risk Management, Effective Communication and Training, Worker’s Compensation and much more. Debbie has the skills of being able to share with her audience in a factual and positive way, how to “get legal and stay legal!”
Contact www.simplysuespeaks.com or firstname.lastname@example.org to book Debbie for your next event.