On Tuesday, March 6, 2018, the U.S. Department of Labor (“DOL”) announced its launch of the Payroll Audit Independent Determination (PAID) Program
The IRS considers the misclassification of workers as independent contractor instead of employees as a major contributing factor to the “tax gap.”
Continuing a trend in Congress to limit employers’ use of independent contractors, on April 22, 2010, Rep. Lynn Woolsey (CA) and Senator Sherrod Williams (OH) introduced the Employee Misclassification Prevention Act (H.R. 5107, S. 3254) (“EMPA”) in the House and Senate respectively.
In a coordinated effort to enhance tax revenues and to enforce wage-and-hour laws, federal and state governments have begun an extensive effort to target employers who have misclassified employees as independent contractors.
Earlier this year, we reported that the Obama Administration's proposed 2011 budget included millions of dollars for a "misclassification" initiative spearheaded by the Department of Labor (DOL).
True or false?
The Department of Labor has issued Field Assistance Bulletin (FAB) 2010-01 clarifying the extent to which pre-2009 contracts no longer receiving employer contributions under a tax-sheltered annuity Section 403(b) arrangement may be omitted from ERISA plan reporting, and when Section 403(b) arrangements are exempt from ERISA under the Department's "safe harbor" regulation.
The Department of Labor (DOL) has introduced new guidelines governing how soon employee contributions and participant loan repayments for small employer sponsored pension and welfare benefit plans must be deposited into the plan's trust accout.
Under current labor regulations last amended in 1996, sponsors of qualified retirement and health and welfare plans are required to transfer employee contributions withheld from wages as soon as those amounts can be reasonably segregated from the employer’s general assets, but not later than the 15th business day of the month following the end of the month in which the amounts would otherwise have been paid in cash.
Since 1988, the U.S. Department of Labor has imposed requirements as to the timing of the deposit of benefit plan employee contributionswage withholdings to the account of the applicable employee benefit plan.