Urgent Legal Update on the New 1099 Laws for Companies Using Independent Contractors in California

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Effective 1st January a new California law introduced huge penalties for cases of 1099 Independent Contractor misclassification. Leading industry experts from ClearPath and Ogletree Deakins to present Webcast on advice and strategies for managing new risks.

www.clearpathwm.com

The current federal budget allocated $46 million to both the IRS and DOL to investigate and prosecute worker misclassifications

With the new California regulations that just came into effect this month, businesses utilizing contract workers should attend the webcast presented by ClearPath Workforce Management as they need to be aware of how the new law will affect them. Jason Posel and Douglas Farmer are two of the leading experts on independent contractor compliance, and following the huge demand from a similar Webcast for HR.com, have scheduled two further Webcasts on the subject.

The new California law, SB 459, subjects companies and individuals to penalties of up to $25,000 for each violation of contractor misclassification, creates employer liability for fees and deductions imposed on misclassified contractors, and makes consultants and others who advise businesses on independent contractor issues subject to liability.

This new regulation has received a lot of publicity, with workers themselves becoming increasingly aware of their rights, and comes hot on the heels of the new IRS amnesty program for IC misclassification.

“The current federal budget allocated $46 million to both the IRS and DOL to investigate and prosecute worker misclassifications” said Jason Posel, SVP strategy and solutions for ClearPath, adding “the amount of audits has increased dramatically, and now states such as California are showing they are just as determined to pursue the tax dollars they would receive if ICs are reclassified as common law employees. For many companies, the results of an audit could be financially crippling”.

This Webcast will:
•Provide insight on SB 459 that will become law on January 1, 2012;
•Cover the latest legislative and regulatory issues focused on worker misclassification, including the IRS’ contractor “amnesty” program;
•Examine ways to determine who qualifies as a 1099 contractor and who should be a W-2,
•Evaluate the risks companies have who misclassify workers, including possible financial penalties of reclassification, co-employment risk, wage and hour related issues;
•Identify strategies for mitigating the risks of misclassification;
•Reveal best practices for engaging contingent labor and Independent Contractors

WEBCAST DETAILS AND REGISTRATION

DATE AND TIME:
26th January at 3pm EST / 12pm PST - Click here to register
8th February at 2pm EST / 11am PST - Click here to register

PRESENTERS:
Jason Posel; SVP Strategy & Solutions; ClearPath Workforce Management
Douglas Farmer; Attorney & Managing Shareholder; Ogletree, Deakins, Nash, Smoak & Stewart

About ClearPath

ClearPath’s services are designed to help ensure companies are compliant with all contingent labor regulations. ClearIC is the most comprehensive IC evaluation and classification service. The web-based program is designed to determine if a worker should be engaged as an IC versus employee, and protect companies from the risks of 1099 misclassification. More information about ClearIC is available at http://www.clearpathwm.com/clearic.

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