Business Management Daily (01/23/12) Angela Rud
The U.S. Internal Revenue Service and state agencies have in the last two years penalized an increasing number of employers for using “independent contractors” who should have been classified as employees. The number of Fair Labor Standards Act case filings involving misclassification challenges has nearly quadrupled since the late 1990s, and was up more than 20% in 2010 alone. The IRS plans to audit 6,000 businesses by 2013 to determine whether taxes, fines, and penalties may be due.
The IRS recently unveiled a new Voluntary Classification Settlement Program that allows eligible taxpayer employers to voluntarily reclassify workers as employees for federal employment tax purposes. The program features partial amnesty for past misclassifications, limiting an employer’s liability.
Exclusive Guide to Factoring for Staffing Companies
Whether your firm needs working capital to hire new talent, maximize a marketing opportunity, or extend client payment terms, factoring allows staffing companies to convert unpaid invoices into cash today. Download now to get answers to the top 10 questions related to accessing working capital via invoice financing.