1099 Independant Contractor Compliance

Federal and state-specific laws govern the relationship between companies and contract workers. Employers and their employees can unintentionally violate these laws through innocent actions and policies, resulting in the possibility of huge penalties, back tax assessments, interest payments, and retroactive benefits. Empire’s compliance expertise is your partner in this complex legislative environment.

Compliance Shield

All of our services are designed around compliance and risk mitigation. The compliance shield is designed to protect our clients from the risks associated with the use of contract labor - including workers classification, co-employment, wage and hour rules - and ensures all our programs are developed with compliance as the core.
Our program is designed in conjunction with major labor law and tax firms, and covers the entire legislation of HR, labor and tax regulations. Our compliance department constantly monitors all new and pending legislation on both a national and state level and our program is updated to reflect all changes.

Comprehensive Evaluation

Leverage our compliant evaluation processes and expertise to ensure your company has a commercially viable risk-mitigation program:
Comprehensive evaluation and classification program for Independent Contractors
Documented evaluation process
Educational training programs for managers and consultants
Creation of Case Defense File for federal or state audits
Corporate policy & procedure enforcement
Conversion of ineligible 1099 Contractors to W-2 status
Compliance with IC regulations, co-employment issues, wage & hour rules
Optional status review of a company’s current contract workers

Why?

Rules and regulations governing the relationship between companies and contingent workers have been in place for years, with an increasing focus from the government, the IRS and a multitude of federal and state agencies has caught the attention of contract labor.

Increased IRS Audits (6000 random audits starting Feb 2010)
IRS claim underpayment of $34.7billion due to misclassification
New legislation regularly being introduced at Federal and State level
State audits already common, especially Labor Departments
Most audits actually triggered by-ex workers
33 States signed MOU with IRS to share information

Risks

 
Reclassification : Fines, penalties, back taxes
Co-employment
Claims for benefits, overtime, stock options etc.
Liability due to lack of appropriate insurance / WC Coverage

 
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