Worker Classification: Avoiding Pitfalls and Penalties
Stuart Katz will be a guest speaker for CPAacademy.org presenting a webinar on the topic of worker classification:
In recent years, the issue of worker misclassification has created a minefield for employers. The U.S. and many state departments of labor have stepped up their efforts to crack down on employers that improperly misclassify employees as independent contractors. While there is a presumption under most federal and state laws that workers are employees, countless employers continue to misclassify workers. Just because someone is issued a 1099 or calls himself a “consultant” does not make them an independent contractor. The consequences and costs of worker misclassification can be extensive. There are workers compensation implications, tax implications, wage implications, and unemployment complications. It is not uncommon for different regulatory schemes to utilize different tests for determining proper classification. Penalties for misclassification can be extensive, which is why it is important to “get it right.” Our presentation is designed to help employers navigate this tricky terrain and avoid its pitfalls.