W2 Issues/Concerns

  • This field is for validation purposes and should be left unchanged.

Blog

Check out our weekly blog posts and see the latest news and discussions happening in the HR world of business.

In the News: DOL issues revised rules for employing independent contractors

Employers love to use independent contractors, and for good reason! You get all the benefits of an employee without having to withhold taxes or offer benefits (in most cases). However, the US Department of Labor has found that too many firms are falling into the trap of misclassifying workers as ICs when they should actually be full-time employees and has thus issued a revised fact sheet on classification under the Fair Labor Standards Act (FLSA).
According to the revised Fact Sheet 13, there are two main situations with ICs that can put companies at risk. These are:

1.When a worker has signed an agreement stating that they are an IC: According to the fact sheet, the signed agreement given to the relationship doesn’t determine employment status. Instead, the reality of the working relationship does.
2.When a worker has incorporated a business or a worker has a license from a state of local government agency: According to the DOL, despite these items, these individuals can still be full-time employees depending on the tasks being performed.

Further, the DOL notes that the time and mode of pay don’t indicate what a worker’s status is. For example, the fact sheet suggests that if an individual is economically dependent on your firm, chances are the DOL considers him/her an employee. To determine whether your worker is an IC or a full-time employee ask yourself whether: we can require an individual to work? And can we prevent someone from working?
Still not sure? The DOL fact sheet includes six economic realties factors that the Supreme Court considered “significant” when determining whether an individual is economically dependent on an employer and include the following:
1.The extent to which the worker’s services are an integral part of the employer’s business (as in, does the worker play an integral role in the business by performing the primary type of work that the employer performs for his customers or clients or does the worker perform a discrete job that is one part of the business’ overall process of production?)
2.The permanency of the relationship (as in, how long has the worker worked for the same company?
3.The amount of the worker’s investment in facilities and equipment (does the worker bring his own equipment? Is he or she reimbursed for materials?)
4.The nature and degree of control by the principal (Who decides on what hours to be worked? Does the worker work for any other company(s)?)
5.The worker’s opportunities for profit and loss (Can the worker earn a profit by performing the job more efficiently or exercising managerial skill or suffer a loss of capital investment?)
6.The level of skill required in performing the job and the amount of initiative, judgment, or foresight in open market competition with others required for the success of the claimed independent enterprise.

Featured BLOGS

  • Should you offer an Employee Assistance Program (EAP)

    Now more than ever, your employees are dealing with an increased mental load. Perhaps it’s just the months of social isolation due to the quarantine, the new-found role of round-the-clock caregiver for children or elderly family members, the financial insecurity stemming from lay-offs, or simply just the uncertainty of our times (Explosions! Murder hornets! Political unrest! 2020 is bringing them all!) These increased daily stressors are bringing Employee Assistance Programs (EAPs) to the forefront as an important perk that companies should offer, both to benefit their employees and their bottom line.  So, let’s start with the basics. At baseline, an EAP

  • Outlining Business Casual for Gen Z

    In the movie “The Intern,” the staff of Anne Hathaway’s booming online fashion website are taken back by Robert De Niro’s over the top business attire. In fact, the crisply ironed handkerchief he keeps peaking just out of his pocket becomes almost a character in and of itself as he loans it out to various lovelorn 20-somethings navigating make ups, break ups, and love in general.  While most companies aren’t quite as casual as Hathaway’s fashion start-up, the reality is that expectations around business attire do differ by generation. In most offices, business casual for your more senior staff likely

Archives