
What do many of us have in common nowadays? Yeah, empty pockets and a crying need for money, money, money – and that includes your government. In the search for dollars, employers’ misclassification of employees as independent contractors beckons as a legitimate source of lost funds. So, the Texas Workforce Commission (TWC) Unemployment Tax Division and the IRS both have an interest in worker-classification issues. It may be tempting to assume your workers are independent contractors and blithely pass on the responsibility for Social Security, Medicaid, Unemployment, and other payroll taxes. Best be sure of your classification though, because when one of the agencies comes knocking, they can collect not only back taxes but impose fines for your errors. Witness the $319 million fine the IRS slapped on FedEx! Continue reading ‘Independent Contractor – Really?’
With so many rules and exemptions under the Fair Labor Standards Act (FLSA), it can be a challenge for an employer to verify that they are indeed following the proper wage and hour guidelines. Let’s review some of the most frequent scenarios employers encounter when determining “Hours Worked.” 