1099 Reporting of Payments to Attorneys and Other Third Parties – OnDemand


What is an independent Contractor and how do you identify and properly classify individuals?

Many employers have individuals classified as independent contractors who are more properly classified as employees. Federal and state agencies, and private attorneys through wage and hour class action lawsuits, actively prosecute and litigate companies for these errors. Improperly classifying employees can lead to a multitude of issues from the failure to pay overtime to improperly paying taxes. This topic will give employers the tools necessary to properly identify and classify individuals who work with their organizations, and provide employers with the ability to draft policies that protect their intellectual property and branding without creating additional employment liabilities. This material is critical for employers to develop the skills necessary to revise their policies, practices, and procedures to ensure compliance with both federal and state requirements.

Learning Objectives

  • You will be able to define what an independent contractor is and develop an understanding of who can properly be classified as an independent contractor.
  • You will be able to discuss the different tests that examine 1099 classifications and the differences between the tests.
  • You will be able to identify the common pitfalls in practices and learn how to avoid the 1099 misclassification traps.
  • You will be able to review your policies, contracts, and procedures to ascertain if your independent contractors are truly independent.