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There is no link as this came by private email from the IRS. In general, 1099 contractors who do work work for companies are now under tighter restrictions starting next year. What has changed is in the past, you had to actually meet several criteria before you could be considered an employee, other wise you were a 1099 contractor.
Now, if the company has the "right" to exercise certain criteria, you are now an employee. This is a MAJOR change from before.
For example, if a company has the "right" to control your behavior ( meaning how you do the work ) you ARE AN EMPLOYEE. Before you had to have actual instructions from the contracting company.
This means we now know a bit better how those 87,000 agents will be used. They will go over the 1099s issued and those received to target companies that they will audit and then penalize / force to hire and pay payroll tax penalties, etc. This will be a huge source of revenue for the US Treasury.
BE AWARE !!!!!
Worker Classification 101: employee or independent contractor
A business might pay an independent contractor and an employee for the same or similar work, but there are key legal differences between the two. It is critical for business owners to correctly determine whether the people providing services are employees or independent contractors.
Here's some information to help business owners avoid problems that can result from misclassifying workers.
An employee is generally considered anyone who performs services, if the business can control what will be done and how it will be done. What matters is that the business has the right to control the details of how the worker's services are performed. Independent contractors are normally people in an independent trade, business or profession in which they offer their services to the public.
Independent contractor vs. employee
Whether a worker is an independent contractor, or an employee depends on the relationship between the worker and the business. Generally, there are three categories to consider.
Now, if the company has the "right" to exercise certain criteria, you are now an employee. This is a MAJOR change from before.
For example, if a company has the "right" to control your behavior ( meaning how you do the work ) you ARE AN EMPLOYEE. Before you had to have actual instructions from the contracting company.
This means we now know a bit better how those 87,000 agents will be used. They will go over the 1099s issued and those received to target companies that they will audit and then penalize / force to hire and pay payroll tax penalties, etc. This will be a huge source of revenue for the US Treasury.
BE AWARE !!!!!
Worker Classification 101: employee or independent contractor
A business might pay an independent contractor and an employee for the same or similar work, but there are key legal differences between the two. It is critical for business owners to correctly determine whether the people providing services are employees or independent contractors.
Here's some information to help business owners avoid problems that can result from misclassifying workers.
An employee is generally considered anyone who performs services, if the business can control what will be done and how it will be done. What matters is that the business has the right to control the details of how the worker's services are performed. Independent contractors are normally people in an independent trade, business or profession in which they offer their services to the public.
Independent contractor vs. employee
Whether a worker is an independent contractor, or an employee depends on the relationship between the worker and the business. Generally, there are three categories to consider.
- Behavioral control − Does the company control or have the right to control what the worker does and how the worker does the job?
- Financial control − Does the business direct or control the financial and business aspects of the worker's job. Are the business aspects of the worker's job controlled by the payer? Things like how the worker is paid, are expenses reimbursed, who provides tools/supplies, etc.
- Relationship of the parties − Are there written contracts or employee type benefits such as pension plan, insurance, vacation pay? Will the relationship continue and is the work performed a key aspect of the business?