IRS Employment Tax Audit Initiative

The IRS announced a three-year nationwide employment tax audit initiative that began February 2010. Under the audit initiative, the IRS plans to audit 6,000 randomly-selected taxpayers over the course of three years. The majority of businesses will be small companies although the IRS will audit large companies as well. The initiative stems from a continuing research effort with the IRS called the National Research Program and is designed to address a perceived shortfall in the collection of employment taxes due primarily to misclassification of employees as independent contractors.

Many of the employment audits will focus on the classification issue but will also focus on additional areas such as fringe benefits including section 409A deferred compensation, executive compensation, backup withholdings, and Forms 1099. These audits will likely be time consuming and run concurrently with an income tax audit or result in an income tax audit if the auditor learns information that would warrant a closer look at certain income tax items.

Some states may also be preparing to conduct similar employment tax audits with a similar revenue-raising goal. The states may find some assistance in these efforts through information sharing agreements between the IRS and state taxing agencies. States may also keep apprised of misclassification actions being filed against employers across the country.
» Read more: Tax News – IRS Employment Tax Audit Initiative and Innocent Spouse Relief Claims

Much has been written about workplace bullying in the most recent years. There are even an increasing number of complaints which hit the headlines. With this alarming rate, it was imperative for employment laws to be enacted in order to combat workplace harassment.

Employment laws basically call for respect for each employee and for them to be treated with dignity while they are on duty. This means that any victimizing act should not be tolerated. By definition, harassment means doing anything that causes offense, is malicious, or insulting. These are unwanted acts such as humiliation, undermining, questioning or laughing at an employee’s religious affiliation, sexual orientation, political stand, or race.

A lot of employees’ problems each year all point towards workplace harassment-concerns such as low morale, absenteeism, and even inefficiency all result from this negative behavior. Since this affects the general workplace environment, it should be every employer’s goal to minimize if not totally eradicate workplace harassment.
» Read more: Disarm Workplace Bullies With Employment Laws

Your search for a professional on contract/project is very different than your search for the full-time employee. Throughout the many years of my recruiting experience, I have collected feedback from employers and candidates alike. Fact: You will hire the candidate primarily because of their personality, chemistry and fit with the rest of the team and the organization. Hand the search over to a reputable staffing agency specializing in the placement of Accounting and Finance Professionals on contract and project basis. Once the agency presented you with the finalists, it is the interview that gives you the opportunity to watch the candidate present themselves at their best. It is the candidate’s opportunity to make a positive impression on you. You will be looking to hire the candidate, which is able to “hit the ground running, and handle the task at hand while you continue with your work.

Some of the reasons to hire someone on a contract basis: Your controller resigned, and year-end is around the corner. Your accounting manager will be going off on a maternity leave. It has been decided that it is time to upgrade the accounting software. There is a special project to get done within a tight deadline. And other circumstances, which do not require hiring a candidate on a full time basis. This is when you will hand the search over to a reputable staffing agency. One, which will do the leg work for you while you continue with your busy daily schedule.

The Process:

Invest an hour of your time and meet with the Search Consultant. It is important to understand your environment the personalities, which the candidate will be working for and with, and the skill set required to accomplish the task at hand. This one-hour of your valuable time will ensure that you will end up with the right candidate.

As you are looking for an individual that is able to “hit the ground running”, independent and does not require a lot of support, do not shy away from an over qualified candidate. The information was shared with the candidate and they are o.k. with the task at hand. Experience has taught us that the end result is a win/win situation. » Read more: How To Hire a Candidate On Contract Basis