b'Reclassifying from independent contractor to employee BY THE SEAY MANAGEMENT CONSULTANTS TEAMOneofthekeyHowever,itsourexperiencethatmost e m p l o y m e n tindependentcontractorsdonotqualifyforthis questionstodayisdesignationandtheIRSandDOLpenaltiesfor whetherapersonmis-classication are steep. So, if you survey your q u a l ie sa sa nworkforceanddeterminethat,inordertoavoid i n d e p e n d e n tthisexposure,youneedtoreclassifyyour contractororanindependentcontractorstoemployees,hereare employee.Thishassome important points to remember.beenatargetissue bytheDepartment1. Mitigatetheexposure.Ifapersonhasbeen of Labor for the lastimproperlyclassiedasanindependent s e v e r a ly e a r s .contractor, the exposure is already there and Independentcontractorsdonotreceiveovertimecantbeeliminated.Thegoalwouldbeto norkeepatimecard.Theypaytheirownmitigate it by making the change promptly and withholdingandSocialSecuritytaxes,arenotcommunicatingittothosewhowillbere-eligibleforbenetsanddonotfallundertheclassied in a positive and user-friendly way.employment regulations. 2. Determinethedateyouwanttomakethe InthisTimeofCOVID,someemployershavechange. Many employers choose January 1st classiedtheiremployeesasindependentbecauseyouwouldnothavetosendthe contractors instead of employees because, amongperson a W4 and 1099 in the same year, which other reasons, its less expensive. could raise a red ag with the DOL or IRS.Midwest Drycleaning & Laundry Institutewww.MWDLI.org / 765-969-5745 \x004'