Employees Versus Independent Contractors: Can You Spot the Difference?

Posted by Kathi Guiney on September 2, 2017, Employee Classifications | No Comments

This Labor Day week, let’s look at employee classifications to make sure we’re doing right by our company’s most valued human resources.

Employee misclassification is a costly and common mistake—as many as 30 percent of companies (even big ones!) misclassify employees as independent contractors. It’s tempting to classify contractors over employees; savings in social security and unemployment taxes, benefits, and overtime can shave up to 40 percent off of labor costs. But if the IRS or the Department of Labor decides these contractors are actually employees, that “savings” will come with a side of fines and back taxes and pay, as Uber and FedEx recently discovered to the tune of hundreds of millions of dollars. (more…)

Are Your Contractors Really Employees?

Posted by Kathi Guiney on January 29, 2014, Employee Classifications | No Comments

Can you spot the difference between an employee and an independent contractor?  If this answer doesn’t come readily to you, and if your business uses contractors, you’re in danger of landing in a pickle.  Why?  Because if you don’t know the difference, you may be in the 30 percent of employers who are misclassifying their employees as contractors.  Don’t be in that 30 percent!  If you learn the classification rules before the IRS and the Department of Labor stop by for an audit, that knowledge won’t come with a side of fines and back taxes.  So it pays to classify correctly, especially in a time when every business is trying to save money. (more…)

Are Freelance Workers Right for Your Business?

Posted by Kathi Guiney on April 4, 2012, Employee Classifications | No Comments

Here at YES! Your Human Resources Solution, we understand these tough economic times can drive companies to review their staffing efficiencies.  Important questions to ask include, Does your company have enough staff?  Too much?  The right kind of employees?  Is there a way to streamline the cost of the employees you do have? (more…)

Employee or Independent Contractor: Are You Classifying Correctly?

Posted by Kathi Guiney on November 9, 2011, Employee Classifications | 2 Comments

Does your business use independent contractors?  If it does, and if you missed the recent wave of IRS employee-classification audits, consider yourself lucky—the feds might not pass you by next time.  These recent IRS audits will generate the first statistical look at employment-tax compliance since 1984.  Back in the era of Reaganomics and big hair, about 15 percent of employers misclassified an employee as an independent contractor, for a total of 3.4 million misclassified employees.  State audits have shown this problem persists into the ObamaCare years.  Could one of those misclassified employees be yours? (more…)