Issue link: http://read.dmtmag.com/i/131533
• JUNE 2013 • WORLD FENCE NEWS LOGICAL DECISIONS, INC Operator parts Gate operators Support rollers Access control Roller covers Safety loops Timers Loop detectors S.O.S. sensors Safety edges Wheels, tracks, & rails Photo beams Battery backups Solar solutions Preformed fence ties 800-676-5537 www.LDI.com 225-274-1115 THE HUMAN LINK by Jim Lucci Management Motivational Associates Proper classification of workers can save you much grief from the IRS This month, I have been asked to review with you the classification of your workers as independent contractors vs. employees, as laid out by the IRS. This is particularly timely since last month we discussed some potential pitfalls in the interview process which many of you could possibly be getting into in view of the better eco- SWAN-BOND Fused-Bonded Wire nomic picture in many parts of the country. Before I even get into this discussion, I wish to point out an item that I came across recently, concerning the new Department of Labor nominee Thomas E. Perez. If Senate confirmation is forthcoming, and it appears at this time that it will be, one potential priority for the new Secretary will be a worker classification mandate that would require firms to inform their workers of their status as regular employees or independent contractors. This proposal was shelved during the administration's first term, but labor is gearing up to survey 10,000 workers to see if they are aware of their status. To determine whether an individual is an employee or an independent contractor under common law, the relationship of the worker and the business must be examined. COMPARE AND SAVE ON TEMPORARY FENCE PANELS N LI N C AI N C H E 600 W. Manville St., Compton, CA 90220 FE M AN TE U U FA IT C ST TU R ER IN 800-688-SWAN (7926) www.swanfence.com K WE SHIP COAST TO COAST 3,000 + PANELS of 6 X 10 & 6 X 14 ARE IN STOCK S ® 46 I'm not exactly sure what the results of said survey will be, but I am sure that attention once again will be focused squarely on this issue, bringing it front and center and becoming a potential major concern for employer and employee alike. With that said, I will now proceed with our discussion with the help of IRS Publication 15-A, Employer's Supplemental Tax Guide, as a backdrop. (You can locate this document through the Internal Revenue Service web site, www.irs.gov.) An employer must generally withhold federal income taxes, withhold and pay social security and Medicare taxes and pay unemployment tax on wages paid to an employee. An employer does not generally have to withhold or pay over any federal taxes on payments to independent contractors. To determine whether an individual is an employee or an independent contractor under common law, the relationship of the worker and the business must be examined. In any employee-independent contractor determination, all information that provides evidence of the degree of control continued on page 48