Detail A Preventif Approach to Using Independent Contractors   Oleh:  O'Meara, Daniel P. ; Braff, Jeffrey L. Jenis: Article from Bulletin/Magazine Dalam koleksi: Journal of Accountancy vol. 183 no. 3 (1997), page 39-44. Topik: contractors; independent contractors Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ85.1 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel As independent contractor use by companies grows, it is increasingly important for CPA s to know how to manage independent contractor relationships in a way that will prevent unwanted problems. CPA s often are looked to by their employers - or by their clients - for guidance on complex independent contractor issues. Although potential Internal Revenue Service liability is the best known threat to companies using independent contractors on a large scale, it is not the only one. Failure to adopt effective preventive practices such as those outlined below can lead to liabilities arising from unemployment compensation, workers compensation, employee benefits, overtime obligations and employment discrimination violations as well as a range of other unexpected costs. In short, managing independent contractor relationships demands skills from many disciplines, and the liabilities facing an organization misusing independent contractors on a widespread basis can be overwhelming. An example of independent contractor relationships gone wrong is Microsofts use of certain software testers, production editors, proofreaders and other workers as independent contractors in the 1980 s. In 1990, Microsoft had to pay an IRS penalty for misclassification as well as retroactive overtime. A group of workers also filed a class - action lawsuit, alleging they were wrongfully excluded from Microsofts employee benefits plans, including an employee stock purchase plan. In October 1996, the Ninth Circuit Court of Appeals agreed, finding the workers were wrongfully excluded, and sent the case to the trial court for an assessment of damages. Microsoft obtained a rehearing from the Ninth Circuit (see the sidebar), and lost that decision, too. The companys liability from the case, in addition to IRS penalties and overtime already paid, could exceed $20 million. Much of the discussion of the legal issues surrounding independent contractors focuses on the IRSs well - known 20 - factor test (see the sidebar) used to distinguish independent contractors from employees. It also centers on relief under section 530 of the Revenue Act of 1978 (see the sidebar). While both are noteworthy tiles, they hardly constitute the entire mosaic. Indeed, giving them undue attention could cause an organization to neglect some of the more important issues discussed in this article. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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