Description
The U.S. Department of Labor (DOL) has revised the criteria for determining whether a worker should be classified as an independent contractor or an employee under the federal Fair Labor Standards Act (FLSA) multiple times over the past decade. The DOL is now introducing a new final rule that will replace the employer-friendly test established during the Trump administration with a more employee-friendly approach. This new rule will take effect on March 11, 2024.
Misclassifying employees as independent contractors is becoming increasingly expensive. Federal and state agencies are working together to combat misclassification, leading to a significant rise in fines and penalties. Each day that misclassification continues, penalties accumulate, creating a ticking time bomb for businesses. Learn how to defuse this ticking bomb by joining renowned payroll expert Vicki M. Lambert, CPP, for this information-packed webinar.
Areas Covered in this Training:
– The DOL’s new rule on Independent Contractor and Employee Classification, effective March 11, 2024
– The new test that determines worker status
– Permissible worker classifications under IRS rules
– The common law rule and its application in determining worker status
– The three factors the IRS uses to determine worker status and their correct application
– Differences between FLSA and IRS rules and the necessity of adhering to both, even as the FLSA regulations are updated in 2024
– How state regulations can override both IRS and FLSA rules using the ABC test for State Unemployment Insurance (SUI)
– Recent agreements and programs by the IRS, DOL, and states to identify misclassified employees
– Leveraging Form SS-8 to determine worker status
– Differentiating between W-2 and 1099 recipients and ensuring they are not the same worker
– The increasing likelihood of 1099 audits and triggers
– Penalties for misclassifying employees as independent contractors and the various assessing authorities, beyond just the IRS
– Steps to take if you discover a misclassified employee
Why Attend this Training:
Changes in contractor vs. employee classification rules are imminent, with a new rule taking effect on March 11, 2024. Employers may struggle to correctly classify workers due to these changes. The DOL’s new independent contractor rule introduces a different approach to worker classification, which could pose challenges. Businesses must be prepared to adapt to remain compliant.
This webinar will examine the DOL’s new rule, the requirements for correctly classifying a worker as an independent contractor, and the circumstances under which a worker must be classified as an employee.
Who Should Attend:
– Payroll Executives, Managers, Administrators, Professionals, Practitioners, and Entry-Level Personnel
– Human Resources Executives, Managers, and Administrators
– Accounting Personnel
– Business Owners, Executive Officers, Operations, and Departmental Managers
– Lawmakers
– Attorneys and Legal Professionals
– Any individual or entity involved in Payroll compliance issues
