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#1 (permalink)   04-01-2010 intercovbc Contributing Member   Join Date: Mar 2010 Posts: 65 Auditors crack down on "Independent Contractors" I came across this article this morning and thought I would share. http://money.cnn.com/2010/03/29/pf/t...ney_smbusiness Quote: (CNNMoney.com) -- If your business uses independent contractors, get ready for new scrutiny. Hoping to boost tax revenue, the IRS and many state governments are cracking down on how companies classify their workers. When employers report wages for independent contractors on IRS form 1099, rather than a W-2, they aren't required to pay unemployment insurance, worker's compensation insurance or payroll taxes for them. But the rules governing which workers are genuinely "independent" are strict -- and often flouted. The Internal Revenue Service launched a program last month that will randomly examine 6,000 companies over the next three years for employee misclassifications. The federal government estimates it will raise $7 billion over the next 10 through tighter enforcement. Hope you enjoy reading the article.

#2 (permalink)   04-01-2010 ShelleyH Junior Member Company name: Sage Virtual Assistance Latest blog post: I can feel Spring, I know its there My latest Twitter: setting up ping... it wont work for my client so I...   Join Date: Feb 2009 Location: Sacramento, CA Posts: 389 Blog Entries: 1 Re: Auditors crack down on "Independent Contractors" Ive heard of companies having 'employees' in their office yet they are classified as ind contractors... that is so wrong.. I was doing VA work for a merchandising co that had 100's of people working for them all over the country. Every one of those folks was considered a 1099. I quit, I couldn't keep working for them. __________________ www.sageva.com Shelley Halpain,

#3 (permalink)   04-01-2010 Tess Senior Member Company name: Codehead, LLP Latest blog post: SEO Q&A   Join Date: Apr 2007 Location: Portland, OR Posts: 9,131 Blog Entries: 3 Re: Auditors crack down on "Independent Contractors" Thanks for taking the time to share this - I think there are actually quite a large number of VAs who are working through agencies, as subcontractors, or even for clients who are technically not 'independent' at all, based on their interactions with any of those entities. It always pays to put your own business policies in place when creating any of these relationships, to help ensure you're working under the correct classification. __________________ Create a welcome packet for new clients with this guide and free templates! (Available in PDF and Kindle versions)

#4 (permalink)   04-08-2010 glloyd New Member Company name: Bee Virtual   Join Date: Feb 2009 Location: Minnesota Posts: 30 Re: Auditors crack down on "Independent Contractors" Thanks so much for sharing this. I work a few hours a week for a non-profit adn they asked me about workers compensation. They get audited yearly . . . my first reaction was "oh no" I don't want to have any issues causing me to lose them as a client!! I think after reading this I should be ok. Thanks again, Gina __________________ Gina Lloyd