excavation contractor Massachusetts
For decades, there have been issues with businesses trying to understand what is and what is not permissible as it relates to classifying workers as independent excavation contractor Massachusetts . In this economy, federal and state governments are looking for revenue wherever they can. It's clear taxing authorities believe this issue could be a pot of gold, with estimates of lost tax revenue in the billions of dollars each year.
Here are a few factual headlines:
· The IRS has committed to spend millions more investigating what they call "worker misclassification' (i.e. calling someone an "independent excavation contractor Massachusetts " when the government considers them your "employee").
· More and more states are going after this issue too, with California having just passed the most onerous law on this subject ever.
· If you are found to have misclassified workers, the taxes, fines and interest could literally put you out of business; and your risk is not limited to the government, with lawsuits becoming more common from workers claiming the company they worked for should have treated them like employees.
Before you allow your blood pressure to rise, we suggest you follow this easy 2- step diagnostic:
Step 1: Do you issue a large dollar volume (let's say millions of dollars) on IRS form 1099 each year to individuals? If you answered "yes", read on and then go to Step 2. Smaller amounts do not mean you're complying with the law, but government officials and potential lawsuits will likely target places where they can find the most money. Remember, when you're issuing all those 1099's, you're providing a copy to the government, so they can easily figure out whom to go after. Issuing 1099s to entities (such as Corporations, LLCs, etc.) is NOT protection against worker misclassification claims, but paying large amounts of 1099s to individuals is certainly more of a red flag.
Tag : excavation contractor Massachusetts
For decades, there have been issues with businesses trying to understand what is and what is not permissible as it relates to classifying workers as independent excavation contractor Massachusetts . In this economy, federal and state governments are looking for revenue wherever they can. It's clear taxing authorities believe this issue could be a pot of gold, with estimates of lost tax revenue in the billions of dollars each year.
Here are a few factual headlines:
· The IRS has committed to spend millions more investigating what they call "worker misclassification' (i.e. calling someone an "independent excavation contractor Massachusetts " when the government considers them your "employee").
· More and more states are going after this issue too, with California having just passed the most onerous law on this subject ever.
· If you are found to have misclassified workers, the taxes, fines and interest could literally put you out of business; and your risk is not limited to the government, with lawsuits becoming more common from workers claiming the company they worked for should have treated them like employees.
Before you allow your blood pressure to rise, we suggest you follow this easy 2- step diagnostic:
Step 1: Do you issue a large dollar volume (let's say millions of dollars) on IRS form 1099 each year to individuals? If you answered "yes", read on and then go to Step 2. Smaller amounts do not mean you're complying with the law, but government officials and potential lawsuits will likely target places where they can find the most money. Remember, when you're issuing all those 1099's, you're providing a copy to the government, so they can easily figure out whom to go after. Issuing 1099s to entities (such as Corporations, LLCs, etc.) is NOT protection against worker misclassification claims, but paying large amounts of 1099s to individuals is certainly more of a red flag.
Tag : excavation contractor Massachusetts
