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Department
of Labor Getting Tough on Independent
Contractor
Classification Says Averett Warmus Durkee (AWD)
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Orlando
& Altamonte Springs, FL – July 2015 / Newsmaker Alert / Averett
Warmus Durkee (AWD) – accountants specializing in the timeshare resort
industry in addition to other businesses – are warning that the U.S. Department
of Labor has processed an increased number of enforcement actions against
employers who misclassify workers.
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“The
Department of Labor’s Wage and Hour Division (WHD) is looking specifically
at whether a worker is economically dependent on the employer or actually
owns and operates their own business,” says AWD Partner Tom Durkee, CPA.
“Resort companies relying on the services of independent contracts need
to be aware of the six factors being used to make a determination.”
While some courts may consider
other factors, the six basic ones are:
1. Is the Work an Integral
Part of the Employer’s Business?
2. Does the Worker’s Managerial
Skill Affect His or Her Opportunity for Profit or Loss?
3. How Does the Worker’s
Relative Investment Compare to the Employer’s Investment?
4. Does the Work Performed
Require Special Skill and Initiative?
5. Is the Relationship between
the Worker and the Employer Permanent or Indefinite?
6. What is the Nature and
Degree of the Employer’s Control?
“Employers need to be aware
that just having workers sign an agreement stating they are independent
contractors and issuing a Form 1099-MISC is not sufficient proof of their
status,” adds AWD Partner Lena Combs. “It’s not just a matter of giving
a worker’s position a label. We sent more information in a recent newsletter
[available at www.bizactions.com/showopp.cfm/spid/2951/art/2667/ind/US].
If any of these points set off an alarm bell, you may wish to consult a
legal professional.”
About Averett Warmus Durkee,
CPAs
Averett
Warmus Durkee (AWD) provides clients with assurance, accounting, and
tax compliance services. As the largest independent CPA firm in Central
Florida, AWD also provides consulting services to clients for business
acquisitions and dispositions and advises clients on ways to improve their
internal processes while providing them with relevant information needed
to make timely, critical decisions. For further information about AWD,
contact Tom Durkee (TDurkee@AWD-CPA.com)
or Lena Combs (LCombs@AWD-CPA.com)
at 407-849-1569 or visit www.AWD-CPA.com.
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Contacts:
Sharon
Scott
for Averett Warmus Durkee
SharonINK
PR & Marketing
310-923-1269
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Rebecca
York
Averett Warmus Durkee
407-849-1569 |