Category Archives for News

Government Raises the Overtime Pay Threshold: How This Could Affect Your Business

On Tuesday, May 17th, 2016, the Labor Department announced a significant economic reform under the Obama administration. Effective December 1st, this reform will essentially double the official overtime salary threshold, raising it from $23,660 to $47,476. The reform will also allow the Labor Department to raise this threshold every three years to keep up with […]

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How We Assist CPAs With Client Consulting

Audits involving independent contractors have lately faced heavy scrutiny from agencies such as the IRS, U.S. Department of Labor, state wage and hour divisions, state unemployment, and worker’s compensation. Current laws, while relatively specific, leave much to chance, and government regulators look to the darker side while auditing employer records of employee payroll and IC […]

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Misclassification and Home Care Workers

According to the U.S. Department of Labor, today’s workers are in need of new protections for their basic rights. Businesses are outsourcing their costs and activities to boost productivity, using third-party management, staffing agencies, subcontractors, and similar nontraditional workers. While this may be cost-effective for businesses and employers, the negative consequence for employees is the […]

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Higher STAKES in NYS Due To Recent ADVERSE COURT RULINGS

There were several relatively new Court Decisions handed down from the Courts in New York that increases the stakes for companies that are using or thinking of using Independent Contractors. To make stakes even higher and what few realize is that there was proposed NYS legislation involving drivers in a specific industry that performed a […]

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The Common Law Test: A Legal Test of Independent Contractor Status

The Internal Revenue Service has a strict definition of the difference between an employee and an independent contractor. To make sure that you are compliant with the legal definition so that you can mitigate your risk, apply this common law test to your IC relationships. 1) Who Is In Control? A worker is considered a […]

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A Worker’s Compensation Premium Claim: One Company’s Success Against the State Fund

At Consultech, we provide independent contractor compliance services to help businesses be in a good position to handle any inquiries, claims, audits, or disputes from government or regulatory agencies. Here is an example of a company that successfully demonstrated the compliance of their independent contractor relationships when faced with an insurance premium claim. The Company: […]

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Ways to Improve Your Independent Contractor Business Model: Part 2

Continued from Part 1. By carefully structuring your IC business model, you can reduce your risk of regulatory inquiries and claims while maximizing your potential for IC profitability. Tip 5: Help Them Build a Close Relationship With Your Business. ICs are often a little detached from the companies for whom they provide services. While this […]

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Ways to Improve Your IndependentContractor Business Model: Part 1

Nearly every business will benefit from considering an independent contractor business model. Using ICs may indeed expose your company to the risks of regulatory inquiries and claims, but by carefully structuring your IC business model, you can reduce your risk while maximizing your potential for IC profitability. The following tips will help you to attract […]

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‘Amazon Prime Now’ Drivers Sue Amazon Over Payment Violations – Are You Running the Same Risk?

Online retail giant Amazon.com offers a service called ‘Amazon Prime Now’, in which courier drivers bring products right to the customer’s door within a one- or two-hour delivery window. Those who pay the $99 annual fee for Amazon Prime can enjoy free two-hour delivery (or one-hour delivery for a small fee). It’s the perfect business […]

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Things to Know About an IC Occupational Accident Insurance Program (The 3 Prong Solution)

Coordinated Occupational Accident Insurance, Contingent Liability Coverage, and Workers’ Compensation Make no mistake: Occupational Accident Insurance (Occ Acc) is NOT Workers’ Compensation (WC). Unlike Workers’ Compensation, Occupational Accident Insurance can have optimal benefits or minimal benefits according to the needs of the Insured. Typically, the higher the benefits in an Occ Acc program, the greater […]

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