I live in Los Angeles, the land of fake tans, fake smiles and fake, well, let’s leave it at fake smiles. I actually love living in Southern California – it is a far stretch from my Midwestern roots and you really cannot beat the weather. To reduce my “fakeness” exposure risk I live in a beach town, plus I use sunscreen every day. In this day and age everyone needs some sort of protection against the elements.
That being said, I came across a recent SIA article where they summarize their 1099 risk mitigation conversations with a group of professionals including contingent workforce managers, attorneys and compliance officers.
SIA states that “…less than 20 percent of companies believe that their ICs are all classified properly.” A sobering but not surprising percentage – I’m awake! That stat coupled with the estimate that in 2009 companies spent roughly $250 billion on independent contractors supports the notion that the IRS is coming, the IRS is coming! Where is my SPF 1099 sunscreen?
And with that, I send you to the ten suggestions to mitigate risk. What do you think? Do you have other tips to share?