I have been reading and seeing more that the IRS is going to come down hard on misclassification of Independent Contractors and this is a serious list:
This list came from the California Construction Trucking Association (CCTA)
Link to the Original Article " Obama Care and the Independent Contractor"
What Makes An Independent Contractor?
In California, the Department of Industrial Relations (DIR) applies the economic realities test, the most significant factor to be considered is whether the person to whom service is rendered (the employer or principal) has control or the right to control the worker both as to the work done and the manner and means in which it is performed. Additional factors that may be considered depending on the work and issues involved are:
1.Whether the person performing services is engaged in an occupation or business distinct from that of the principal;
2.Whether or not the work is a part of the regular business of the principal or alleged employer;
3.Whether the principal or the worker supplies the instrumentalities, tools, and the place for the person doing the work;
4.The alleged employee’s investment in the equipment or materials required by his or her task or his or her employment of helpers;
5.Whether the service rendered requires a special skill;
6.The kind of occupation, with reference to whether, in the locality, the work is usually done under the direction of the principal or by a specialist without supervision;
7.The alleged employee’s opportunity for profit or loss depending on his or her managerial skill;
8.The length of time for which the services are to be performed;
9.The degree of permanence of the working relationship;
10. The method of payment, whether by time or by the job; and
11. Whether or not the parties believe they are creating an employer-employee relationship may have some bearing on the question, but is not determinative since this is a question of law based on objective tests.
While reading Heavy Duty Trucking today I came across an article about Lease Purchase that has a paragraph talking about in the next decade of the IRS going after 6.9 billion of misclassification of independent contractors in audits.
The radio is full of talk about these audits and I am curious to how hard this will hit the Expedite industry or what are you as a fleet owner doing to protect yourself in case of an audit?
This list came from the California Construction Trucking Association (CCTA)
Link to the Original Article " Obama Care and the Independent Contractor"
What Makes An Independent Contractor?
In California, the Department of Industrial Relations (DIR) applies the economic realities test, the most significant factor to be considered is whether the person to whom service is rendered (the employer or principal) has control or the right to control the worker both as to the work done and the manner and means in which it is performed. Additional factors that may be considered depending on the work and issues involved are:
1.Whether the person performing services is engaged in an occupation or business distinct from that of the principal;
2.Whether or not the work is a part of the regular business of the principal or alleged employer;
3.Whether the principal or the worker supplies the instrumentalities, tools, and the place for the person doing the work;
4.The alleged employee’s investment in the equipment or materials required by his or her task or his or her employment of helpers;
5.Whether the service rendered requires a special skill;
6.The kind of occupation, with reference to whether, in the locality, the work is usually done under the direction of the principal or by a specialist without supervision;
7.The alleged employee’s opportunity for profit or loss depending on his or her managerial skill;
8.The length of time for which the services are to be performed;
9.The degree of permanence of the working relationship;
10. The method of payment, whether by time or by the job; and
11. Whether or not the parties believe they are creating an employer-employee relationship may have some bearing on the question, but is not determinative since this is a question of law based on objective tests.
While reading Heavy Duty Trucking today I came across an article about Lease Purchase that has a paragraph talking about in the next decade of the IRS going after 6.9 billion of misclassification of independent contractors in audits.
The radio is full of talk about these audits and I am curious to how hard this will hit the Expedite industry or what are you as a fleet owner doing to protect yourself in case of an audit?
