What are the biggest employee-related mistakes employers make these days? And how can you defuse these potential time bombs before they explode into costly disputes? Here’s a quick overview of the top 10 employer mistakes — and how to avoid them.
Seven Costly Myths About Managing Independent Contractors
In an effort to trim labor expenses, many businesses have cut costs by replacing employees with independent contractors. Some savings are certain-employers don't pay employment taxes to the IRS or benefits to these workers. But with independent contractors, the risks-and the hidden costs-may reduce or even wipe out the savings!
If you use independent contractors in your business, be sure that you’ve classified them properly and not simply chosen to treat workers as independent contractors (IC) when they are actually employees.
Many business owners prefer IC classification because it saves the company considerable money. The company doesn’t have to pay employment taxes, workers’ compensation, or employee benefits, such as health insurance or retirement plan contributions, saving the company 20% or more in contrast to having an employee.
Notice – News Alert from Contingent law- April 2010
The Employee Misclassification ProtectionAct of 2010 (EMPA), amends the federal Fair Labor Standards Act (FLSA) to Increase government enforcement against employee misclassification practices by employers of all sizes, to curtail and penalize worker misclassification.
