A law passed in Delaware in January requires all businesses, including Independent Contractors and Sole Proprietors, to cover all employees with workers’-compensation insurance, even if they are a one-person operation. The legislation, Senate Bill 1, was designed to tackle Delaware’s notoriously high workers compensation premiums. However, rather address the root causes of high premiums in Delaware, which most commonly involve… Read more →
In the latest development in the FedEx Ground class action suit, lawyers for the plaintiffs attempted to persuade a federal judge to certify as class actions both federal and state-level lawsuits that allege the misclassification of FedEx drivers as independent contractors rather than employees. However, there is reason to doubt the allegations of misclassification – the FedEx drivers maintain a number… Read more →
Commencing January 1, 2008, any person who makes a payment for services to an individual in Colorado that is reportable on a Form 1099 will be required to deduct and withhold Colorado income taxes at the rate of 4.63 percent if the individual (i) fails to provide a validated taxpayer identification number (“TIN”), or (ii) provides an Internal Revenue Service… Read more →
U.S. Government Accountability Office responds to questions posed by Senator Norm Coleman, Chariman of Permanent Subcommittee on Investigations, Committee of Homeland Security and Governmental Affairs, concerning tax compliance by federal government contractors. View full text here.
U.S. Government Accountability Office provides recommendatoins for addressing the tax gap associated with civilian government contractors, Financial Management, Thousands of Civilian Agency Contractors Abuse the Federal Tax System with Little Consequence, GAO-05-637 .