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The misclassification of employees as independent contractors, presents a serious issue for affected employees, employers, and to the economy. Misclassified employees are often denied access to critical benefits and protections such as family and medical leave, overtime, minimum wage and unemployment insurance. Employee misclassification as independent contractors, also generates substantial losses to the Treasury and the Social Security and Medicare funds, as well as to … Continue reading »
January 31, 2011 is the deadline to furnish Form 1099-MISC to recipients. The 1099-MISC form is used to report more than two dozen types of payments that must be claimed as income by the recipient. This category includes payments made by businesses as fees to attorneys, service providers, and freelancers. Other types of payments covered by the 1099-MISC include reimbursement for auto expenses, awards and bonuses, commissions, prizes, and vacation allowances for nonemployees. A payer of rents and royalties must also … Continue reading »
Employers must make a determination whether someone who works for them is an employee or an independent contractor.
To assist them with this, the IRS has issued the “Twenty Factor Test”. Here are the tests an employer applies in order to help make this determination: