Social Security is going broke and small business is going to pay for it, like it or not.
Today I spoke to a group of my trusted alliance partners about independent contractors. Based upon the feedback I received, many people will be revisiting their independent contractor relationships to make sure those relationships will pass the sniff test.
The stakes are high now. Social security funding is down because employment is down and more employers are reclassifying employees as independent contractors to save on payroll taxes, insurance and benefits. With healthcare reform waiting in the wings even more employers will look at reclassifying workers to avoid the tax surcharges on wages that are buried in the details.
The federal and state departments of labor are increasing the number of examinations to ferret out the cheaters.
If you are thinking about reclassifying workers, don’t.
If you have reclassified workers, stop.
If you aren’t sure what to do, call.
Call who? Call me.