Substantial enforcement developments from government agencies focusing on worker classification compliance are putting employers on notice. Learn about the issues affecting businesses nationwide and the key steps to take immediately. Five Questions About Worker...
Tip of the Week: Time to Conduct Your Contractor Classification Check-ups
Employers may unknowingly trigger risks of labor violation penalties and fines by improperly classifying individuals as independent contractors. By doing so, employers may also be denying workers certain employee benefits (e.g., overtime and the federal Family Medical...
FedEx Ground Agrees to Pay More than $3 Million to Settle Misclassification Claims
The office of Massachusetts Attorney General Martha Coakley recently announced a settlement with FedEx Ground over claims that FedEx Ground misclassified drivers as independent contractors rather than employees. As a result, it was alleged that FedEx Ground underpaid...
IRS Outlines How to Determine If Worker Is an Employee
In a response to Senator Dianne Feinstein (D-CA), the Internal Revenue Service (IRS), in Information Letter 2010-0001, explains how to determine if a worker is an employee for federal income tax withholding purposes. The determination of employee or independent...
Question of the Week: How Do I Know if Someone Is an Employee or Independent Contractor?
This week’s question comes from Brian. We need more help in our business. We’re not sure if the person who’ll provide us services should be considered an employee. How do I know if someone is an employee or independent contractor? Answer: In Summertime Tax Tip...
Attorney General Files Suit against Companies for Misclassifying Employees as Independent Contractors
California Attorney General Edmund G. Brown, Jr. recently filed suit against three trucking companies alleging that the companies improperly classified their employees as independent contractors. The suits filed against Guasimal Trucking, LLC, Noel A. Moreno and Emma...
FedEx Ground Ordered to Deliver $14.4 Million in Employee Dispute
A court-appointed referee, retired California Superior Court Judge William J. Cahill, has awarded current and former drivers for FedEx Ground Package Systems, Inc. (FedEx) $14.4 million in expenses and interest. In 2005, the court granted judgment to the plaintiffs in...
Tip of the Week: Listen to Our HRCasts for the Latest HR Tips, Information, and Best Practices
Today and on the fifteenth of every month, Vision Payroll posts a new HRCast, a recording provided by our team of HR Pros. These recordings help you better manage your business and your most important asset, your employees. In prior months, topics covered included...
New California Law Clarifies Temporary Agency Wage Payment Frequency
California Governor Arnold Schwarzenegger recently signed into law SB 940 which clarifies when temporary agencies must pay their employees. Under the law employees of temporary agencies must generally be paid on a weekly basis. If the temporary employees are assigned...
IRS Issues Guidance on Payments to Deceased Employees
The IRS recently issued guidance for reporting wages paid in 2008 (including accrued wages and vacation pay) on behalf of deceased employees. Although state law generally controls who receives the unpaid wages, the reporting follows the same rules even if the check is...
Question of the Week: Does Massachusetts Have Laws Regarding Employees and Independent Contractors?
This week’s question comes from Louisa, an HR manager: We have individuals who perform services for us. Does Massachusetts have any laws to determine if these individuals are our employees or independent contractors? Answer: In Massachusetts General Laws (MGL), c....
Reduced Taxes Due on Reclassified Employees
In Private Letter Ruling 200825043, the IRS concluded that employers who receive a determination letter from the IRS that someone previously classified as an independent contractor should be classified as a employee may use §3509 to reduce the amount of employee FICA...
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