Contingent Workforce Solutions

December, 2009 - Research Suggests Companies Are Not Prepared

In a previous Spotlight blog (October 2009: IRS to Audit 6,000 Companies on Employment Tax Compliance), it was highlighted that the Internal Revenue Service (IRS) has stated that beginning in February 2010 it will begin detailed employment tax examinations of 6,000 U.S. companies chosen at random including proper classification of workers as either employees or independent contractors. This announcement comes on the heels of recent cases at FedEx for $300 million and Comcast which has brought independent contractor misclassification and compliance to the forefront once again.

Despite these developments, recent research released by Staffing Industry Analysts suggests over 50% of companies do not use a third party provider for compliance services or do not have a formal program in place for classifying contingent workers. While 34% of those surveyed do plan to engage with a service provider within the next two years, another 29% of respondents said they do not plan to select a vendor for independent contractor compliance.

| | |